Research

The day after House Dems passed Obama’s $2.5 trillion government-run health care bill, Bloomberg is reporting that it is currently less risky to lend to Warren Buffet than to President Obama and the Congressional Democrats. Historically, treasuries have lower yields than corporate debt because they are backed by the “full faith and credit of the government,” but currently two-year notes from Berkshire Hathaway Inc. have yields that are 3.5 basis points lower than similar treasuries. Put more simply, as one investor stated: “It’s a slap upside the head of the government.”

It should come as no surprise to anyone that it is becoming increasingly more risky to lend to the United States.  As a result of Obama’s binge spending, Moody’s has warned recently that the U.S. could lose its AAA credit rating.  The Obama administration has been ignoring these warnings and last night’s House vote on the Dems’ government-run health care bill just reinforced the fact that Congressional Dems are in no hurry to end their binge spending either. Another reason why Pelosi needs to be fired!