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The debt is a real threat

Commentary: U.S. to join 'Club Med'?

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The potential collapse of the euro currency, sinking stocks and a dead job market here have combined to push long-term rates down. Ten-year Treasurys are trading at 3.57 percent despite a huge new borrowing next week, and mortgage rates are at 5 percent flat. Job losses appear to be bottoming, but the issue is new employment. The "V" recovery spinners are the same guys as all last year -- and someday they'll be right -- but new unemployment claims are back up to 480,000 weekly, 2009 job losses were revised up by a million, and the drop in unemployment to 9.7 percent is statistical wandering. We have survived the Great Recession thus far because of "sovereign guarantees" all over the world. Bailouts and deficit spending are ultimately backed by national tax revenue to make good on promises and debts, and it has been a matter of some curiosity which nation or currency might fail the test of confidence: Europe it is. The euro experiment rested on belief t...