Thinking the Unthinkable: A U.S. Rating Downgrade - WSJ.com

Thinking the Unthinkable: A U.S. Rating Downgrade - WSJ.com:
"As posited in a recent opinion piece on the new health legislation, the populace has been effectively led by the current administration and the Congress to believe they can have accessible, affordable health care provided by taxing the wealthy and those who decide not to buy coverage. Those who decide not to buy coverage - their true identity as young people who have other financial needs - is downplayed.

So the world of California (and many other states with liberal social agendas) and unions becomes the overpowering political philosophy.

Frankly, the record of this philosophy isn't too sanguine. One thinks of GM going bankrupt (unions), grossly underfunded State public employee and teacher pensions (unions), uncontrollable deficits (California, New York), a continuing exodus of businesses (Michigan), a reluctance to form new businesses and small businesses (socialist Europe), etc.

So, as with those who felt the unsustainability of endlessly rising housing prices, it would appear prudent to question the sustainability of policies that inhibit the private sector and, in an unbridled fashion, expand the public sector.

Greece is feeling the sudden wake-up call of a big jump in rates.

In the 1970's, the US witnessed the same and rates didn't stop at 6% (Greece currently).

Much of Western Europe and the US may all get hit at the same time (just like with banks all deciding to cut-off a families credit lines at the same time)."