Magazine

Deficits Are Anathema to the Bond Market


BusinessWeek has gone out of its way, like Federal Reserve Chairman Alan Greenspan, to try to cheerlead the U.S. economy out of recession ("What bonds are saying," American News, Aug. 4). The bond market is telling us what it told us in 1990, 1987, and 1985: It hates huge federal deficits as far as the eye can see. If the fiscal doves want to continue to run the printing presses day and night, the bond market is going to respond with higher interest rates. It won't be too much longer before the 10-year Treasury note is quickly heading over 5% and the last two standing legs of the economy -- autos and housing -- collapse.

Geoffrey Lenart

Ventura, Calif. I'm glad that Verizon Communications Inc. Chief Executive Officer Ivan G. Seidenberg has such ambitious plans ("Verizon's gutsy bet," The Corporation, Aug. 4).

I look forward to that day in the far, far future when I have a fiber-optic connection to my home. And while Wi-Fi in my neighborhood would be neat in the year 2015, I'd settle for a digital subscriber line in the year 2003.

Michael E. McGown

Dripping Springs, Tex.

I applaud Verizon for its vision. When it succeeds, I will buy its service and quit those of the other gutless telecoms that are holding back, waiting to see what happens. Verizon understands that to beat the competition, you have to be in the forefront of technology.

G.C. Sozio

Los Angeles I was blessed with four black children (including one male) and had the awesome challenge of supporting them during an extensive portion of their upbringing -- alone ("How to level the playing field for young black men," Economic Viewpoint, Aug. 4). I can assure you that a drug addict/dealer would not have been a preferred enhancement, nor a substitute for the inconvenience of my working as many as four jobs, seven days -- and some nights -- of the week. My experience is not unique; neither is the fact that all four of my children have at least a master's degree. Black American single female heads of household are too common. But drug addicts do not a role model or head of household make.

H. Vivian Halliburton

Country Club Hills, Ill.

The cost of the "war" on drugs in dollars and lives has exceeded any return we could ever expect to achieve. I will vote for the first Presidential candidate who finally admits that we have lost the war and that it is time to legalize, regulate, and tax narcotics. Putting just a fraction of the resources required to incarcerate drug offenders into rehabilitation would benefit all society and save the lives of many innocent bystanders killed in gang wars.

Rick Schmidt

Portland, Ore.


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