Let’s make this blunt: The US government can borrow at 2.2% today. That’s the market price of ten year money. That is an insanely cheap cost of funds. It shows, if free market analysis means anything at all, that the market is not in the slightest bit concerned about the American deficit at the moment. […]

As an afterword on the whole downgrade silliness, the world has been full of S&P critiques. Quite why we need to add to the very obvious fact that S&P is clueless as to risk, and very likely corrupt to boot, seems beyond me. Anyone who believed the magical stardust sub-prime mortgage lead into AAA gold […]