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Juliana Lee's Blog

By Juliana Lee,MBA | Agent in Palo Alto, CA

Federal debt - a spreading fire?

Moody's Investors Service may downgrade U.S. government debt. Moody's is concerned with both the "fiscal cliff" of expiring tax reductions and unsustainability of the status quo.

The August 2011 Standard & Poor's downgrade of U.S. Treasuries caused minimal impacts on both the stock market and Treasury yields because of the perceived safety and being the world's deepest and most liquid bond market.

The current low yields of Treasuries will let Congress postpone action, leading to more debt which will hinder growth. Bottom line: Should the U.S. rush a deficit reduction program? Yes. Does if have to be done right now? No.

http://julianalee.com/blog/economy/federal-debt-a-spreading-fire/

Looks like local condtions will still determine the real estate market.

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