S&P downgraded the US's credit rating. Why? The stated reason: The GOP refused to consider revenue increases (tax hikes).
Was this a deliberate plan? Was someone's arm twisted? “You say this and we won't slap you with an SEC investigation for credit default swaps.”
Or is it just the logic of history? The voice of capital itself tells the GOP that they are living a lie.
One thing's for sure: they aint gonna hear it from anyone else.
In the short term, rising interest rates from this decision will suck.
But in the medium to long term: this is a HUGE stake through the cold heart of the Reaganzombies. Reagan, as we all know, died in 2008 when Lehman tanked. But his zombies still stalk the earth intoning “Tax cut! Tax cut!”
I wouldn't put it past Obama, as a yin president (why I like him), to be tarrying with the negative in this respect.
1 comment:
Krugman:
On the other hand, it’s hard to think of anyone less qualified to pass judgment on America than the rating agencies. The people who rated subprime-backed securities are now declaring that they are the judges of fiscal policy? Really?
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