Again, let's clap for Congress! I want to thank all the economic terrorists for wrecking things. Great JOB! Great WORK!
So, you know what? Time for a major reset. Brace yourself. We're officially f&$%-ed! Before this we were just unofficially f&#@-ed!
UPDATE I
There are now reports from Lisa Desjardins, a CNN radio reporter, stating via twitter, "S+P DOWNGRADE more: Admin. official tells CNN that S+P acknowledged 'errors' in its analysis, BUT is still considering a downgrade."
She added: "S+P DOWNGRADE FREEZE: Source in Obama admin. says S+P's analysis was off by 'trillions.' Talks ongoing b/t WH and S+P now."
If you want to follow her, her handle is @LisaDCNN.
UPDATE II
Well, a lot of shit happens when you're at the gym! While I was jogging and texting and sweating, the news broke. We've been downgraded. The United States of America has lost its triple-A rating. I'll be digging into how this will impact student borrowers (current and prospective). There is a likelihood that folks with what I call "private-private" loans, i.e., ones that include language like "BORROWER BEWARE," will see an increase in their interest rates. Luckily, there is no other currency, no "safe haven," for investors to flee to . . . that's thanks to quantitative easing, something the Chinese resent.
Here's a pressing question too: how many borrowers have fixed rates, and how many borrowers have unfixed variable rates? The lending industry is so enormously convoluted, that it will be hard to track how this will change interest rates, the availability of loans, and so forth. But that's something I'm working on, folks.
On a final note, do you think this is how the S & P decided to say "f%&$ you, U.S. Government!" for considering an investigation into their role in the housing crisis? You gotta love the tyranny of the markets - isn't it beautiful? To make matters worse, we have a bunch of economic terrorists in D.C. who worship Wall St. Lucky for them, they ain't gonna be sufferin' like the rest of us po' folk out here.
Like I said, brace yourself. We're on a new roller coaster from hell.
Sally:"Gee, Jimmy, I am not so sure I agree with you about this roller coaster being fun."
Jimmy: "Golly, I think you might be right . . . "
Source: Awesome Blog that has pics from the 40s, 50s, and 60s
Related Links
From the MacroScope, an awesome blog by Reuters, "Historic downgrade: US losses AAA," August 5 2011
Paul Krugman, "S & P and the USA," NYT, August 5, 2011
From the MacroScope, an awesome blog by Reuters, "Historic downgrade: US losses AAA," August 5 2011
Paul Krugman, "S & P and the USA," NYT, August 5, 2011
5 comments:
"Standard & Poor's warned last month that the United States was at risk of a downgrade if it did not raise the debt ceiling and cut the country's debt by $4 trillion over a decade."
How did they come up with the $4 trillion figure? Oh wait, I forgot, it's a ratings agency. Too bad the market is practically offering the U.S. free money.
You think Obama cares? He is too busy celebrating his birthday at the White House with Jay-Z.
Time to update that post, Cryn.
The lack of leadership in the White House is stunning. Maybe if we had leadership instead of a partisan campaign we might get something done.
It is only a matter of time. From teh moment the Banks thought they could discard 1500 years of development of the real estate title law. It is only a matter of time for the rule of law to collapse. We are looking and living in 476AD.
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