Obama vs. the Bond Market Vigilantes

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"Well, if Obama and Congress like each other and he signs the tax increases that are needed (which are, by the way, LESS than the increases automatically taking place anyway by AMT creep and the expiration of so-called "Bush" tax cuts---all with no Congressional action needed at all) then it won't be as bad as predicted."
It's not just tax increases, but the totality of the AMT PLUS the expiration of Bush tax cuts (which, btw, most the Tax Policy Center estimate calculates with these expiring) that will harm the economy.

Chris of AZ 4:07PM August 22, 2008

You also forgot to mention the proposed bailout of the big 3 automakers.
"Under either Senator Obama's or Senator McCain's plan, however, the debt would likely continue to rise as it has over the past eight years, even under the CBO's relatively optimistic assumptions about spending. Senator Obama's plan would add $3.5 trillion to the national debt (including additional interest costs) while Senator McCain's plan would add $5.0 trillion."
This is being generous. The government has been running up debt for far longer than the past eight years.

Chris of AZ 3:57PM August 22, 2008

Well, if Obama and Congress like each other and he signs the tax increases that are needed (which are, by the way, LESS than the increases automatically taking place anyway by AMT creep and the expiration of so-called "Bush" tax cuts---all with no Congressional action needed at all) then it won't be as bad as predicted.
If McCain and Congress merely squabble over the tax issues, then sure enough, you'll probably have an international mess with the USA losing international (credit) credibility.

of 3:50PM August 22, 2008