5 thoughts on “The S&P Downgrade”

  1. It’s difficult to know how much of this is already priced into the market. I don’t think anyone is really shocked at the downgrade, and so my bet, FWIW would be to see a dive on Monday followed by some recovery of sorts. FWIW.

    In kind of a continuation of the prior thread, see Michael Moore’s 30 Years Ago Today – The Day the Middle Class Died.

  2. Jeez, this is what we get for having a former lawyer, law professor, and community organizer for President!

    If we had an MBA President, who ran the country as a business, here’s what he (she) would have done:
    First, he would meet the top executives of Standard & Poors for lunch at the most expensive restraurant in town, told them to get whatever they wanted – including the most expensive wines.
    Then he’d make them an offer. “Look, you’re a ratings agency, and we all know what that means, and how this works. And you’ve taken a bit of a beating in the last few years. So what I’ve done is bundled us with Iceland, Ireland, Italy, Spain, and Haiti into a derivative. Now I want you to give it the best rating possible. And I’m ready to offer you an incentive to do that. How does $100 Billion in unmarked treasury bills sent to the bank of your choice sound to you? This way, we all get what we want. We still have a top rating so other countries will continue to allow us to borrow – and you’re no longer “Standard & Poors,” you’re back to being ‘Standardless & Rich.’ Capiche? So, do we have a deal? I knew that we would.”

    After what they’ve done over the last 10 years, this whole rating agency thing should be a joke.
    Well, it is one.
    It’s just not funny.
    It’s pathetic.

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