Jim Cramer wrote:
>
> "We have a big economy, i am not worried until the bonds move against
us."
To which Doug replies:
"Cramer. Ah the 90s.
I love this reasoning - don't worry about something bad happening while you can plan for it, just wait till it's on the tape. Apply this to global warming: 'We have a big planet. And I live on the seventh floor. I'm not worried until the Hudson hits six.'
Doug"
Yeah baby! Roll them bones and damn the torpedoes. You gotta love Cramer for nerve and brevity, though.
So Doug, while you and I have been conversing these many years, the U.S. Treasury has kept up the borrowing and "Agencies" have even created a whole new debt colossus. As you know, the U.S. now produces the *two* most popular debt securities in the world: The U.S. mortgage bond and the U.S. treasury bond, in order of popularity (as you know). The world seems to have a nearly limitless appetite for our debt and there is nothing like a "Japan Premium" on American bonds, so what the hell, right? What will it take for us to saturate the market? Got a number?
It's not that I agree with Cramer's reasoning at all but I tell ya, as a practical matter I believe we could borrow a lot more before we have to start paying a real premium.
peace,
boddi