Thursday, August 04, 2011

Thanks, Tea Party

Since the weekend, when the scope of the deal to raise the debt ceiling made it clear it would do nothing for economic growth, the US stock market has lost $1.02 trillion in value.

Whoever decided it was a good idea to put zealots in charge of economic policy?


charlesH said...

Well I too can keep economic growth going strong in my own household if I borrow money to enable spending beyond my income. The problem is that eventually the debt has to be repaid.

Would you have the US end up like Greece? That is where the US economy is headed if we keep borrowing like we have been.

charlesH said...

"S&P decided to lower the AAA rating, held by the United States for 70 years, to AA+ after a bipartisan debt deal signed into law this week failed to assuage concerns about the nation’s growing spending."

charlesH said...

"The bond-rating houses kept saying all along that they weren't worried about the debt ceiling not being increased. Rather, they were worried about the long-term prospects of the U.S. government paying back $15-plus trillion, which is where our national debt (both publicly held and obligated to trust funds) will be shortly.

Because last weekend's deal didn't cut spending deeply enough, S&P has just downgraded us."

charlesH said...

Frankly, I'm not concerned about the US paying back its debt. I do believe they will inflate the currency to make it easier.

This makes the US different than the Greek situation. Greece is like a state in the EU, no national currency to inflate.

David Appell said...

This is the same S&P who just made a $2 trillion error in their analysis of the US budget. And who gave high ratings to the junky bonds that started all this mess. Clearly they have some problems with basic competence.

charlesH said...

The problem isn't the rating. The problem is the debt.