The economic health of this country in the long run will be dependent on the economic health of the treasury, of our fiscal situation and we can't get that under control until we get the entitlement crisis under control.
Bonds sold off from the start of trading, and the selling accelerated after Moody's Investors Service said that the U.S. sovereign-debt could be negatively affected by the extension of tax cuts and if the government can't get its growing debt undercontrol.
But while US politicians were arguing over whether to inject more stimulus into the economy, the euro was creaking under the strain of forced austerity, and a new coalition government in the UK was promising to raise taxes and cut spending to get the economy undercontrol - Thomas Herndon's homework assignment wasn't going well.