Bill Gross - the biggest bond buyer in the world - of PIMCO thinks so.
I don’t think it will happen quickly, but I think the market views the possibility as an increasing one," Gross said. "I mean, the U.K. was downgraded last night, and the market views those two countries, the U.K. and the U.S., as relative twins."
And Timmy Geitner is not saying "that's ridiculous." Instead, he's saying we'll address the problem - over the "intermediate term." That's a term of art meaning more than 5 years.
“It’s very important that this Congress and this president put in place policies that will bring those deficits down to a sustainable level over the medium term,” Geithner said in an interview with Bloomberg Television yesterday. He added that the target is reducing the gap to about 3 percent of gross domestic product, from a projected 12.9 percent this year.
Picture of the guy who was touted as the only man who knew how to fix the economy so that the fact he was a tax cheat had to be overlooked.
Does this guy give you confidence? Not me either.
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