All the downgrades by Standard & Poors seem a little….I don't know…over the top.
If Warren Buffet calls you out for doing it, I think there's something a little strange going on, no? (S&P responded to this by lowering the credit rating on Berkshire Hathaway, which just proves even more that S&P is on some big out-of-control-nothing-based-on-reality kick. I mean, really?)
Seems to me that S&P is getting a little anti-American these days. Which is strange to me because the first thing their Wikipedia entry says is that they are a “United States based” financial services company.
Who apparently hates America.
Do they really think that America is going to walk away from their debt? First and foremost, that's not going to happen. Second, that's not going to happen!
If the question is, does America have too much debt, then the answer is yes. But, here's the problem. Credit ratings have nothing to do with that. I repeat. They have absolutely nothing to do with that.
It's about whether we can pay it back. That's the start and finish of what the credit ratings mean. And there has been no reason to think that we wouldn't be able to.
Until today. Or last Friday, to be technical.
I don't know. I find it strange. Here's what I think should happen:
- The SEC should immediately investigate anybody and everybody remotely associated with Standard & Poors. If anybody shorted the market or went into cash over in the last several weeks, they need to be investigated. Hard. It seems to me that someone out there is getting rich off this and it's not Joe Public.
- Let's call the S&P 500 just ‘The 500' from now on. Just cuz anything to do with the name S&P pisses me off right now.
- Americans should mail S&P their financial statements. If we all sent our 401(k) statements before-downgrade and after-downgrade to them with a little ‘Thanks for this' note, do you think anybody there would get the hint? After all, pretty much everybody who invests in their company 401(k) plan got screwed (read: most of the middle class). Let them see how.
America has a debt problem. We have way too much of it and there's no end in sight. But, there's a right way and a wrong way to do that. One of the wrong ways is to elect the same turds over and over again. Another wrong way is for an agency to overstep their bounds, fiscally and politically, and get involved in something they have no business being involved in.
Don't we have enough people in Washington already trying to screw us? At least we can vote them out. All we can hope for the S&P folks is that they pick up shop and move somewhere else. Why wouldn't they? After all, they do seem to hate America.