[Vision2020] And the Saga Continues

[Paul Rumelhart]

Because it's never been so much ado about nothing before?

The S&P credit downgrade is silly.  If you hold T-bills, you have 
absolutely nothing to worry about.  The U.S. has never failed to make 
it's interest payments, and it really can't default since it can just 
print the money it needs to pay you off since it's all denominated in 
U.S. dollars.

The debt ceiling thing had nothing really to do with the trillions we 
have in debt.  It was about meeting our pre-budgeted allocations.  It's 
like a husband and wife agreeing on what to buy for the year but then 
remembering later that they had made a New Years pledge to not spend 
more than $X.  Normally, they would just decide to ignore that number, 
since they had already committed to their purchases together and had 
already put the purchases on their card, but, alas, they've been 
fighting lately so they made a big stink about it.

 From what I've seen, this is different than the real financial troubles 
we had back in 2008, which we are still reeling from.  And since S&P 
didn't see that one coming (or pointedly looked the other way), I don't 
know why we even care what they rate our bonds as.

I'm not an economist, and I wouldn't put it past the people in charge 
not to do something really stupid in order to "fix" this.  I just feel 
that this is a manufactured tragedy and it will go away as soon as there 
is something else interesting and shiny in the news to focus on.

Time will tell, I guess.

Paul

On 08/08/2011 08:04 PM, mushroom at moscow.com wrote:
>>     Paul Wrote: On the other hand, if I had the money I'd buy
>>      lots of good, sound stocks that have fallen in value that someone
>>      else has sold out of some hazy "fear of the financial situation" and
>>      ride them  back up to where they were in a few weeks time when this
>>      whole stock market hysteria blows over.
> That's good news -- the "few weeks time" part. How come nobody else seems
> to know this? How come recovery has never been that fast before?
>
> Don Coombs
>
>
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