David Stockman, former Budget Director under the Reagan administration, thinks the U.S. is "borderline" bankrupt and bond vigilantes are "just around the corner". The national debt hit $14 trillion in January and we're running a "$100 billion deficit" a month, he said. The national debt is expected to hit the debt ceiling in a few months. Watch the Bloomberg clip after the jump.
"One of these the days the global bond market or currency market is going to have a huge upset, a Greek moment, and then it will be too late because of the massive scale of what we're doing."
"It's not a matter of defaulting, it's a matter of what we have to pay to the global bond market in order to carry and add to this huge debt we already have."
Also from Reuters today: "Moody's Investors Service warned on Thursday that lack of U.S. government action on the budget deficit increases the likelihood of a negative outlook on the country's top AAA credit rating".