US bonds sale faces market resistance
[Linked at Instapundit]
“The US Treasury is facing an ordeal by fire this week as it tries to sell $100bn (62bn) of bonds to a deeply sceptical market amid growing fears of a sovereign bond crisis in the Anglo-Saxon world… . The Obama administration needs to raise $2 trillion this year to cover the fiscal stimulus plan and the bank bail-outs. It has to fund $900bn by September.”
And, in the Chrysler and GM cases, it’s already shown a deep disrespect for the rights of bondholders. That’s not likely to breed enthusiasm among investors.