STANDARD AND (PISS) POOR
So that brilliant analytical house, Standard and Poor, says the U.S. Gov't, which hasn't missed a payment on anything due since 1789, is suddenly not as creditworthy as it was Wednesday.
Never mind that they set up a formula with a number incorrect by over two trillion dollars. Never mind that their reasons for the downgrade were political and had nothing to do with a balance sheet. Let's just look at the track record of these folks.
They predicted the crashlet of 1987. Oh, wait! They didn't. They predicted the tech bubble bursting in the 90's. Oh, wait! They didn't. They saw the open trading of debt swaps as a future as dangerous to our economy and downgraded the players. Oh, wait! They didn't.
These people couldn't predict a bowel movement after a bowl of chili.
Totally aside from politics, we can choose to believe in American exceptionalism or we can believe these goobers. Since there is literally no evidence that these folks have ever predicted anything of importance correctly, I'll bet on the American enterprise spirit.
posted by UMRBlog @ 01:19
3 comments
3 Comments:
You got that right! Add that to the liars in Washington D.C. and you have the perfect storm.
Serious bond traders downgraded U.S. bonds a couple weeks earlier (at least). Egan Jones is the real deal ... call them "piss poor" if you like.
Now the government will punish S&P for their call, while Moody's is not investigated for the same calls. It is clear, go against the Obama/Chicago/lawyer machine and you will be punished.
And you wonder why there is a Tea Party that is fed up with the corruption? Maybe it is hard to see when you are deep in the middle of it.
Bill
If you haven't notice, America has astronomic debt that's totally out of control. Oil dependency will create even greater fiscal problems - and yes, there is that 250 billions annual trade deficit with China. The outlook can be only negative - what is surprising is that top ratings held so long. The proper ratings should be somewhere closer to the speculative area. America is technically bankrupt already anyway:
http://www.bloomberg.com/news/2010-08-11/u-s-is-bankrupt-and-we-don-t-even-know-commentary-by-laurence-kotlikoff.html
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