U.S. Lawmakers’ Deficit Fears Not Mirrored in Bond Market – Bloomberg 11-28-12

Anthony Valeri at LPL Financial said the market is definitely not concerned about the US becoming Greece.

Long term, projected increases in health-care costs will make the US budget path unsustainable. The CBO says debt as a percent of the economy exceeds 70 percent for the first time since 1950, and eventually the US would run the risk of a sudden fiscal crisis.

Kit Juckes at Societe Generale said it makes sense to borrow money and do stuff – the market is saying the disciplines forced on a small open economy are different from those forces on the world’s No. 1 reserve currency.

Steven Rattner at Willett Advisors said markets are not perfect at looking far out and  don’t always understand the political forces shaping policy. Rattner said the fiscal cliff is a draconian meat ax to deficit reduction – what we need is a more graceful scalpel approach.

Richard Kogan at the Center on Budget and Policy Priorities said deficit reduction should avoid starving real public needs, and instead stabilize debt as a percentage of the economy.