Debt is becoming the zombie myth of the euro crisis

About 1.25 million Americans would pay more in taxes next year if President Barack Obama’s latest plan is approved. The White House wants to allow taxes to rise for households making more than $250,000 by boosting the top marginal tax rates to 36 and 39.6 percent (currently, it’s 33 and 35 percent).

Magicians at the ECB have temporarily convinced market participants that Europe is in some sort of recovery. It isn't. All of Europe is now in recession, including Germany as noted earlier today in German Economy Shrinks Most in Three Years; Situation Significantly Worse Than Mood. "Debt Doom Loop in Spain"

Carmen Reinhart and Kenneth Rogoff (2013):

The year started off with a slew of stronger-than-expected economic numbers that had many economists forecasting a return to trend growth.

The Fed's lucky streak of luring bond investors with low interest rates may be drawing to a close. Nevertheless, the extended period of low borrowing costs has bred a new breed of investor. To the bulls and bears, we can now add the ostriches - those who bury their heads in the sand of declining debt service ratios while refusing to face up to intractable levels of total US government debt. If these ostriches were to actually look at the numbers, they would realize that it is their investments which are made of sand.

What the rest of the world can teach conservatives -- and all Americans -- about socialism, health care, and the path toward more affordable insuranceReutersAvik S. A. Roy