tag:blogger.com,1999:blog-636421170177338991.post6410656406240944142..comments2023-10-07T05:29:24.236-05:00Comments on Tax Prep & Accounting Services, Inc.: The Not So Big Problem of the U.S. Budget DeficitKeithTaxhttp://www.blogger.com/profile/00224167617509338587noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-636421170177338991.post-2562776535819468902010-08-25T13:28:48.551-05:002010-08-25T13:28:48.551-05:00These are good points, but the premise is that the...These are good points, but the premise is that the U.S. will continue to grow quickly moving forward. Since our economy is (very) largely consumer spending-based, we are relying on a resumption in consumer spending. But, with unemployment not improving and the housing market decimated, this recovery appears to be quite very far off. In reality, most of the consumer spending in the past was backed by housing prices or higher wages/employment. <br /><br />I think we will eventually recover in that aspect, but not for awhile.<br /><br />But, the main problem in the U.S. right now in my opinion isn't the budget deficit- it's the Treasury market. I don't mean to be part of the populist argument now (just recently became one), but everyone and their mother are flocking to Treasuries as a safe-haven and yields have plummeted. What happens when everyone unwinds that trade?Anonymousnoreply@blogger.com