19 April 2011

The S&P debt downgrade


Richard Adams has the best commentary I've seen about S&P's revision of US sovereign debt from "stable" to "negative". These are the same dunces who gave top ratings to Bear Sterns, Lehman Brothers, and "derivatives". The stock market and bond prices showed zero reaction to the verdict.

Adams also notes the obvious point: If there is one serious reason to be concerned for the financial stability of the US, it's the know- nothing teabaggers in the House threatening to hold the next debt- ceiling increase hostage to political games-playing. And Wall Street is putting pressure on Boehner to rein in those nutcases before they do real damage.

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