Much Ado About Debt

Have you noticed the transition of the message from cutting edge websites, discussing the problem in terms of the "formula" years in advance, to more mainstream outlets? This transition reflects an evolution of recognition from narrow to broad. This type of transition, depending on your investing skills, can be dangerous. The greater the audience that recognizes the problem, the more difficult it is marginalize. In money terms, this often foreshadows trend accelerations. In other words, big money for a few, and arse whippings for many.

On that day, Moody's released a report acknowledging that while the United States' debt was still triple-A rated, the government's margin for error had "substantially diminished" in the wake of the recession and trillion-dollar deficits. Like a Rorschach ink blot, the report was many things to many people -- and it mostly served to confirm their deep suspicions. Deficit hawks saw an omen. Others saw ... well, nothing at all.

Source: finance.yahoo.com
Source: Jim's formula