When the S&P downgraded our credit rating last Friday one of the reasons they gave was the inability of Congress to raise revenues, IE tax increases. That’s rather interesting given the Republican front-runner’s handling of credit ratings in the past: Gov. Mitt Romney lobbied the credit ratings agency Standard & Poor’s in 2004 to raise […]
Yesterday’s big sell off wasn’t due to the recent down-grading of the U.S. credit rating. Sure it played a very minor part in it, but if you look at the markets yesterday there is something very interesting the sticks out. Investors still rushed to buy treasury bonds, which drove the 10 year interest rate below […]
Tonight Standard and Poors reduced the credit rating of the Untied States from AAA to AA+. Their main reasoning (see report here – PDF) is that our spending is still high and we are not increasing revenue. As matter of fact the report really unleashes on the revenue part: Compared with previous projections, our revised […]