It will be another day of finger-pointing and political squabbling as the Senate tries again to wrap up efforts to craft a version of a financial rescue package for the nation. Currently, the price tag stands at roughly $827 billion. Some Senators believe this figure represents a value that it is far too high - while others believe the current sum is woefully too small. Let's keep our fingers crossed that calmer, cooler heads prevail to achieve a value that is just right - because once the capital is committed - we sure don't want to wind up going back to the global investment community and ask for more.
International financiers are already beginning to questioning the nation's sovereign creditworthiness - and any sign of further fiscal incompetence on our part will almost certainly lead to notably higher required yields on government debt obligations. If that scenario were to develop -- you can bet that mortgage interest rates will rise as well.
Uncle Sam will be splashing around in the credit markets this week looking to borrow $32 billion in the form of 3-year notes tomorrow followed by $21 billion in the form of 10-year notes on Wednesday and concluding with $14 billion in the form of 30-year bonds on Thursday.
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