Here are the highlights from this weekend’s editorials on fiscal and budget policy:

U.S. Treasury markets were relatively quiet most of this week, although some Friday morning news had translated into market gains, as of early afternoon. (Most notably mentioned, the SEC indictment of Goldman Sachs moved investors from stocks to bonds and lower consumer confidence in early April suggested a weak recovery in the near term.)

Commentators generally reported that demand was bolstered by safe haven effects related to continuing uncertainties with Greece’s sovereign debt challenges and possible concerns about other high debt Eurozone members. 

A great debate is breaking out over concerns for our growing debt, and it is centered around interest rates on Treasury securities.  A fear held by many, including CRFB, is that growing deficits will cause investors to demand a higher risk premium on Treasuries, causing interest rates to rise and hurting the overall economy as a result.  Commentators on both sides of the debate have used interest rates as proof of investors' level of concern regarding the fiscal outlook. 

For budget and market watchers, the month of March has been a little scary. It is not easy to come out of the deepest recession and financial crisis since the 1930s, particularly when the fiscal outlook and prospects for its successful management are so uncertain.

Sovereign risk jitters are on the rise as markets are being asked to digest massive amounts of government debt, at the same time the supply of private sector debt going to market is increasing and investors' appetite for risk is returning. The changes underway are complex and shifts could well be sudden.

On Friday evening, the FDIC reported that it has taken over an additional seven banks (State Bank of Aurora, First Lowndes Bank, Bank of Hiawassee, Appalachian Community Bank, Advanta Bank Corp, Century Security Bank, American National Bank) for a cost to the FDIC of about $1.3 billion.

On Friday evening, the FDIC reported that it has taken over an additional four banks (Statewide Bank, Old Southern Bank, The Park Avenue Bank, LibertyPointe Bank) for a cost to the FDIC of about $200 million. This brings the total number of failed banks since the beginning of 2008 to 196.

Here are the highlights from this weekend’s editorials on fiscal and budget policy:

Commission Coming – The White House says President Obama will create a fiscal commission by executive order within days. Meanwhile, Republicans still have not committed to participating.

Snow Job – Just hours after Senators Max Baucus (D-MT) and Charles Grassley (R-IA) announced they had reached a deal on a jobs bill, Senate Majority Leader Harry Reid (D-NV) plowed it under, saying it was too bloated with provisions not related to creating jobs. The Senate will consider the scaled-down version Reid crafted on February 22 when it returns from its week-long President’s Day recess.

Experts concerned about the nation’s fiscal and economic outlook braved the snow yesterday to participate in a Senate Budget Committee hearing on “Crisis and Aftermath: The Economic Outlook and Risks for the Federal Budget and Debt.” There was a great deal of agreement among the economists testifying that confronting the debt would be critical to promoting economic recovery and growth. As Washington digs out of 2-plus feet of snow, we must stop digging a larger debt hole.

Nobel Laureate Joseph Stiglitz stopped by New America this week to discuss his new book "Freefall", about our economic and financial crisis.

For the fiscal hawks among us, he warns: "Our economic growth has been based … on borrowing from the future: we have been living beyond our means."

But, he has other worries for the immediate future: