The question keeps coming up, so I thought I’d share some of the highlights of expert opinion:
- Our resident Argentine, Ignacio Esponda, asked at lunch: ”Which is the banana republic now?” (That’s a low blow, but he has a point.)
- Gian Luca Clementi was interviewed by Italian network RAI, ostensibly because Italians are worried about us. I don’t speak Italian, but GL tells me he said: ”No need to worry about a US default, Italy has enough miseries of its own.”
- Perhaps more surprising, Nouriel Roubini is optimistic about the US. That’s even more positive than his comments earlier in the year about Europe, that “things are less worse.”
- Jon Stewart has been overwhelmed with good material and is running a series, “Shutstorm 2013.”
- Even better, The Onion has weighed in. As has Limericks Economiques.
More seriously, we’ve seen a rise in yields at the very short end of the Treasury yield curve and a rise in the price of Treasury credit default swaps — insurance against default. Kim Schoenholtz and I may collect some data for a future post.