Investors Balk at US Treasuries

The minority GOP may not be able to stop the juggernaut known as the Obama recovery plan but the free markets actually may:

NEW YORK (AP) — Weak demand at a Treasury bond auction touched off worries in the stock market Thursday about the government's ability to raise funds to fight the recession.

The government had to pay greater interest than expected in a sale of 30-year Treasurys. That is worrisome to traders because it could signal that it will become harder for Washington to finance its ambitious economic recovery plans. The higher interest rates also could push up costs for borrowing in areas like mortgages.

I think that's a wrong analysis; I believe that investors couldn't care less about financing the recovery plan, they really care about how the hell we plan on paying for it. The recovery plan spending has already occurred, it's now new program spending and a bloated budget that needs to be funded and how can it be done if no one buys bonds?

It appears that Americas very own debt is quickly becoming a "toxic asset" and the last thing China wants is to become the Lehman Brothers of the world markets. Oil producing nations have already cut back on our treasuries.

How far have we fallen?