Is the U.S. Bankrupt? Bankruptcy is always in the eyes of the creditor. And there are clearly people and countries continuing to voluntarily lend the U.S. government money at what appear to be absurdly low rates. But I'm not one of them because my answer to this question is a firm yes. Given the magnitude of our fiscal gap, our country is absolutely and desperately broke. We were broke before the financial crisis hit, and we are now in much worse shape given the vast sums we've spent trying to save Main Street from Wall Street (p. 78).
Tuesday, June 15, 2010
X = Laurence J. Kotlikoff, from his new book Jimmy Stewart is Dead: