“Rick Santelli: if federal spending doesn’t come down we could see 14% treasuries.

Last time that happened in the 1970’s it brought 11% unemployment and 18% mortgages. Today, with $33 trillion in debt, it would be catastrophic.”

Analyst Comment: Many US financial analysts assume that the US is the cleaniest dirty shirt: We may be screwed but every other country is in worse economic condition and will break first. That’s an assumption that deserves to be questioned. With high borrowing in Washington, and modest treasury sales by historic buyers like China already yielding higher Treasury rates, we may be closer to a debt doom loop than most analysts realize.