Perhaps inspired by Jesse Jackson, Jr., S&P issued a warning about US sovereign credit rating. This is the same ratings agency that gave AAA stamps of approval to toxic pools of subprime-backed crap that turned out to be worthless. But that's not the half of it. Does S&P think it's possible for the US to default? S&P should spend more time over at
TC.
I was going to rant about S&P and their previously VERY poor judgments yesterday, but the more I thought about it, I figured "maybe someone has grown a pair at S&P" - someone who was told to sit down and shut up earlier, is now saying "hey, there's a 1 in 3 chance that they'll not reach a compromise", and they are voicing their concern and being listened to by S&P upper management (maybe?).
ReplyDeleteIf it moves intractable parties together, I think it is a good thing.
Of course, I changed my retirement portfolio last weekend to decrease my substantial bond holdings (that I have been sitting on since mid 2008), JUST PRIOR to Monday's bond market surge - I have a knack for doing that sort of thing, always missing the next big trend. But if the US does further slide into a fiscal abyss, then Bonds will become increasingly devalued... so who knows?