US Hits Soft Resistance from Lenders: First Signal of Lending Crisis Looming

Fox Business economist, Stuart Varney, was on with Sean Hannity on March 30. Part of the conversation was on Dick Morris’ suggestion that we defund all foreign aid while trying to reign in entitlements. Dana Perino was also on set and was immediately against that. Varney didn’t answer that subject straight up but said, just this week the U.S. met some resistance from lenders for new borrowing, and Varney said this is the FIRST SIGNAL of a crisis close on our heels:

I think we are fooling around on the edge of a crisis. I think we are so far gone, we are so close to the point where we drop over that cliff, it is time to forget political positioning here. It’s time to get down to the business, fixing America’s finances.

I think we are fooling around on the edge of a crisis. I think we are so far gone, we are so close to the point where we drop over that cliff, it is time to forget political positioning here. It’s time to get down to the business, fixing America’s finances.

Just a couple of days ago, America Uncle Sam tried to borrow money, OK? They ran into some headway. Lenders were reluctant to lend. That’s the first signal that we have a crisis and it is approaching. Now, we’ve got to do something. Forget this political positioning. This four billion or 11 billion or not foreign aid, forget that. You’ve got to really get to grips with… Source RealClearPolitics

Varney is making the point that we need huge cuts in spending to make a difference. I agree with that reality, but believe we should drastically cut foreign aid, and everything else that is wasteful or not necessary. It is the taxpayer’s money, and just because one cut does not equal all that’s needed, doesn’t mean the cut should not be made. Every wasteful or nonsensincal penny needs to go. The three or four million in foreign aid may be only a small fraction of the problem, but we’re talking BILLIONS. Cut it or shut it.

But the real gist of this post is Varney’s comment that for the first time, lenders hesitated before loaning America money.