I still can’t believe the stock market has done as well as it has. The only reason I can find is the excess liquidity pushed into the market by the Fed/Treasury. It surely can’t be business taking loans and spending money!
Despite the economic measurables pointing to stocks being a good buy the fact remains that the entire foundation of our nation and country is wobbling badly. All this rating agency did was point out the obvious.... nothing is changing. Bush (yes, he did) spent too much. Obama has spent twice as much as Bush. A good start would have been for Congress to push spending back to past numbers before the hyperspending by the government.
They could not do it. The debt crisis and deal proved it.
Bingo! This is what I've been saying. The stock market is nothing but a parking place for money. Did you note how the DOW followed the Euro in this latest oscillation? I admit that it is not always proportional, but the DOW will not go up without a rise in the Euro against the dollar. The whole thing is so disconnected from any sort of quotidian idea of "economics" that it's downright scary.