The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates.
President Barack Obama’s budget plan moves the spotlight away from reducing U.S. deficits and instead seeks new spending to energize the Democratic base and give incumbents a job-creation platform for November’s midterm elections.
When Hostess Brands Inc. went bankrupt in 2012, it triggered anxiety among employees at Ottenberg’s Bakery, a family-owned enterprise in Maryland. The companies shared a pension plan, and if Hostess couldn’t pay its retirees, Ottenberg’s would have to pick up the tab.
Lawmakers in Congress and President Barack Obama’s administration are losing momentum to control the U.S. deficit, Representative Frank Wolf said a week before the president will unveil his annual budget proposal.