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Senator Coburn: US Liquidity Crisis Coming in 2 Years – Unless…

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posted on Jun, 11 2010 @ 08:33 AM
What goes behind the Markets, and people doesn't even take the time to listen.

The liquidity crisis shows its ugly head once again, this time by one of our own senators.

Most of everybody that take time to see what goes on with the markets and wall street knows who Jim Cramer is, while I don't agree with all his views, it calls my attention that he is been talking about the next liquidity crisis, in an interview in CNBC he brought the subject again.

On Thursday, it happened again. Cramer desperately wants the US government to sell $2 trillion worth of 30-year Treasurys to help this country avert a liquidity crisis. And Senator Tom Coburn, R-Okla., agrees with him.

US as we know borrow money from other countries to keep the nation going, but the short time debt is about to mature and have to be paid, we the state of our economy this will means having to borrow more money to pay what will be due and having to pay higher rates, this will fall on the tax payer in the nation, that means you and me.

Next year the tax brakes that Bush impose are to expired, do not believe even once that the new administration will push them again, this time taxes are to get bigger and meaner for the hard working Americans in the Nation.

We have a debt to pay and by all means we will pay it.

Unfortunately, Treasury Secretary Geithner is dead set against the idea. But that’s just shortsightedness, Coburn told Cramer today. That shorter-term debt may pay out lower interest rates – say, 3% or 4% -- than long-term notes at 6%, but the cost will soar “ever higher,” Coburn said, if the US has to scramble to raise cash in the face of a crisis.

“They’re afraid to spend a dollar today,” Coburn said, “to prevent us from spending $10 or $12 in the future.”

“And the liquidity crisis is going to come on within the next 18 months to two years,” he added. “There’s no question about that.”

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