News
WSJ | Worries Grow Spain Will Need Broader Aid
Spain's borrowing costs jumped to a record Thursday, fanning concerns that the €100 billion ($125 billion) aid package planned for its banks won't suffice to stave off a much larger bailout for the entire country.
Washington Times | Debt fight poses new risk to U.S. credit rating
Wall Street rating agencies are starting to sound warnings again about the possibility of further downgrades of the once-perfect U.S. credit rating as a critical year-end deadline for addressing the nation’s mounting debt nears.
WSJ | France Pledges to Meet Deficit Goals Despite Ailing Growth
France will meet deficit-reduction targets despite question marks over the strength of economic growth, Finance Minister Pierre Moscovici said Thursday, paving the way for tax increases and spending cuts that could prove the first unpopular measures of the country's new president.
USA Today | Italian borrowing rates skyrocket in bond sale
Italy's borrowing costs on its three-year bonds skyrocketed Thursday to their highest level since December, as concerns about Spain and the state of Europe's economy continued to pummel the country's financial markets.
Econ Comments & Analysis
Forbes | President Obama: The Biggest Government Spender In World History
The U.S. has never before had a President who thinks so little of the American people that he imagines he can win re-election running on the opposite of reality. But that is the reality of President Obama today.
WSJ | A 'Bail-In' Could Save Spain's Banks
Far from calming the markets, Spain's request for a €100 billion ($126 billion) loan to bail out its banks has sent Spanish interest rates soaring and led to multiple downgrades from the credit-rating agencies this week.
NBER | Debt Overhangs: Past and Present
We identify the major public debt overhang episodes in the advanced economies since the early 1800s, characterized by public debt to GDP levels exceeding 90% for at least five years.
