Check this out. If you plot the position of the USA relative to Greece and other profligate countries on the edge, we are in the same vicinity as the worst and worse off than some known problem children like Portugal. Vertical axis is fiscal debt to GDP. Horizontal axis is total debt to GDP."Welcome to “Credit Crunch II.” By stuffing billions of dollars of taxpayers’ money into the balance-sheet holes of the banking industry, governments have transmogrified private risk into public liabilities. The “too-big-to-fail” label just reattaches itself to governments from financial companies."
"The real driver here is not that the private debt problem is becoming a sovereign debt problem, but the opposite–the sovereign debt problem is threatening to renew the private sector banking crisis. Consider the BIS data that is cited in press reports today: German bank exposure to Greece is 43 bln euros, to Portugal 47 bln euros, to Ireland 193 bln euros and to Spain
Time to rant about this again. I'm tired of this fictional chart. Unicorns are prettier if we're going to look at imaginary things. Last year the federal government took in $1.5 trillion. The economy is going steeply downhill. Let's pretend that tax receipts aren't still falling sharply. Pretend they go back to the same as last year. That would make a deficit of $2.3 Trillion for one year!!! There is no way we are going to see tax receipts like they're projecting in this chart. Still think our government is at least trying to do a good job? Joke's on you. This doesn't represent a credible effort.
No comments:
Post a Comment