Posted on 08/07/2011 7:54:22 PM PDT by Do Not Make Fun Of His Ears
Could be Spain is rated too high. The $2 trillion ‘mistake’ really doesn’t matter as S&P had warned of downgrade if at least $4 trillion in spending reductions/revenue enhancement was not made. And that was just a ‘down payment’. I believe S&P gave at least 3 very public warnings of downgrade if the deficit and debt were not adequately addressed before and during the debt ceiling debate. The downgrade was very much deserved. We are only ‘better’ than Spain in the sense that Spain is a turd sinking and we are still floating.....for now.
Brinkley was one of the good ones. I remember his saying during the 1996 election coverage that Clinton was "A Bore" and that "The next four years will be filled with pretty words, and pretty music, and a lot of goddamn nonsense!". Brinkley was wrong about that.
If the debt reaches a point where the interest payments start to seriously pinch entitlement outlays, I believe the FSA (Free S-it Army) will have a big say on how secure our bonds are and whether we start to default. Exponential math tells me an event horizon is approaching......
I thought about that too. If that’s the case...then they are still not very trust worthy and not using good judgment.
I want to see how the markets will react tomorrow. It could get ugly.
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