Monday, August 8, 2011

Some Nerve!

The folks at Standard & Poors have some nerve.

It was they who gave AAA ratings to the junk mortgages that home lenders were handing out like candy a few years ago, precipitating a financial crisis that caused the world economy to collapse, and with it federal tax revenues.

So now they tell the federal government they are downgrading the federal government's credit rating from AAA to AA+, even though the federal government reached an agreement to avoid default on its obligations.

What makes them experts all of a sudden?

A lower credit rating means higher interest rates paid by the federal government, i.e. taxpayers, on the money it borrows. And who will be the beneficiaries of those higher interest rates? Wall Street investors, of course.

Nothing like having people coming and going.

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