Invest in alarm clocks
-
Goldman: "Federal fiscal policy is entering uncharted territory"
A few excerpts from a note by Goldman Sachs economists: What’s Wrong with Fiscal Policy? Federal fiscal policy is entering uncharted territory. ... While most of the recent fiscal expansion has not come as a surprise to us, this nevertheless raises new questions about the plan for US fiscal policy. The Treasury continues to borrow at low rates and it should be able to do so for a while even if market rates move higher in our view, thanks to a nearly 6-year average maturity of outstanding debt. ... In the past, as the economy strengthens and the debt burden increases, Congress has responded by raising taxes and ... (full story)