May 7, 2009

UH OH: Weak Treasury auction sends stocks lower. “The government had to pay greater interest than expected in a sale of 30-year Treasurys. That is worrisome to traders because it could signal that it will become harder for Washington to finance its ambitious economic recovery plans. The higher interest rates also could push up costs for borrowing in areas like mortgages.” It’s like people are losing confidence in the Obama Administration’s willingness to see that bondholders get paid. Oh, well — what could go wrong, really?

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