Signs of hysteria -

1. Four US firms may have higher ratings than US bonds in the future: Exxon Mobile, Automatic Data Processing (ADP), Johnson & Johnson and Microsoft. These corporate bonds are secure in their AAA ratings while the government, which can levy taxes, may lose this top rating. (similar to 1981 when IBM bonds had a higher price than US treasuries)



2. Money market funds are increasing their cash positions in case investors panic over the US debt situation.



3. Stocks are down again on worries about the debt ceiling...even though earnings are up.