Junk Bonds Will Destroy The Earth in 2012

Just when you thought this whole recession thing was over, the Times is reporting that $700 billion worth of bad corporate debt will be due in two years. Stock up on Doomsday supplies now.

The Times story has some sobering figures on the national debt, and gives an idea of what the future might look like:

"The approaching scramble for corporate financing could strain the broader economy as jobs are cut, consumer spending is scaled back and credit is tightened for both consumers and businesses."

Sounds familiar!

Moody's Investors Service is warning that the US may be downgraded from its coveted AAA credit rating, and that an "avalanche" of bad debt is looming. And here's some Tea Party ammo just in time for the 2012 presidential election:

"The United States government alone will need to borrow nearly $2 trillion in 2012, to bridge the projected budget deficit for that year and to refinance existing debt."

[Photo via AP]