Will the PIGS come home to roost?

Under this scenario, at some point financial markets or foreign lenders decide we are no longer a good credit risk, possibly due to debt affordability concerns. They conclude the United States cannot escape basic economic and financial “laws of gravity” forever. They stop buying our debt securities or demand dramatically higher interest rates due to increased perceived risk. With the sudden shift and large rise in interest rates, the economy goes into a severe recession. … Unlike the past two years, we cannot, however, borrow to stimulate the economy because the crisis was caused by excessive debt and lost confidence. … Creditors concerned with hyperinflation or even default will not buy U.S. debt.

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Global Markets Now Infected with Europe Fear

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Drudge Headers:

OBAMA REDISTRIBUTION VICTORY: PRIVATE PAY PLUMMETS, GOVT HANDOUTS SOAR

Sen. Gregg: Financial Reform Bill Is 'Disaster'... (video)MUST Watch

The financial regulatory bill is a “disaster,” and its proposed consumer protection agency would create a Fannie and Freddie “on steroids,” Sen. Judd Gregg, R-N.H. told CNBC on Monday.

POLL: Obama Approval Falls to New Low: 42%... Developing... [It's official]

Related: The brink of financial ruin, PIGS must have been here, PIGS R Us