Bond Auction Today Is Very Important

The bond auctions today will be important as we need to see what kind of demand is still out there for our debt. There is too much fear and US Treasuries are still considered a safe place to “park money”. However, if that sentiment changes, we could be in big trouble very quickly.

There aren’t any serious attempts being made to curb our spending. The best Obama could come up with was a price freeze on a sliver of our annual budget. He wants to push through health-care reform and that is projected to cost at least $200 billion per year. Everyone knows those estimates are ridiculously low and they include all sorts of projected price savings. If foreign investors sense that our debt will escalate, the demand for our bonds will fall.