Over the weekend, there was great concern that Standard and Poor's downgrade of U.S. debt would increase the cost of government borrowing.
Not so much.
It turns out the market has paid no attention to the downgrade. In fact, the yield on US Treasury Bills, Notes and Bonds is now less than 1% for five-year issues, and overall down by about 1% from the yield a month ago. So Much for S&P.
Some also believed there would be a rally in the stock market after the debt limit deal. The market, however, seems to have figured out that the deal was bad news for the economy.
What we really need is jobs to fuel a recovery and resulting increase of revenue.
Oh, well.
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