Quick Thoughts on the S&P’s Downgrade of US Debt
A little under an hour ago, the S&P downgraded its rating of US sovereign debt, from AAA to AA+. The Wall Street Journal’s got the press release here.
The thing about downgrading a nation’s sovereign debt right when the economy appears to be teetering on the edge of a double-dip recession (as if claiming the Dow returning from 6,000 to 12,000, while unemployment basically stays constant, amounts to a comeback for everyday Americans, but, I digress) is that it amounts to an indirect tax hike on all Americans, with interest rates rising across the board.
The world trusts S&P, Moody’s and Fitch—agencies that all contributed, in no small part, to the subprime fiasco, as they knowingly rated securities much better than they actually were, because they stood to benefit—to give them a sense about whom to trust and whom not to. And, as a result, the S&P wields the power to exact indirect austerity measures on an American public (and any other country, for that matter) that, at the end of the day, could have an awesome impact on so many things.
I’m not saying I don’t understand the S&P’s rationale; the things it cites are entirely true. But, if ever you questioned the fickle nature of financial markets vis-a-vis confidence, this latest fiasco is painfully putting that relationship on display for all to see.



I’ve been itching to pen a few blog posts in the past two or so weeks, but I’ve felt bogged down by the prospect of penning something truly worthwhile and longer than say, 500 words.
Earlier today I was picking up a few groceries at my neighborhood 





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