Program Note
[ Posted Thursday, August 4th, 2011 – 23:27 UTC ]
My apologies for the lack of a Thursday column. I really did want to write a column today, and was planning on next Tuesday being the first break here (see Program Note 3, at the beginning of Tuesday's column, for details). Unfortunately, I spent the day delving into the mysteries of Volvo braking systems instead. So I guess we're getting an early start on the new (temporary) Monday/Wednesday/Friday schedule, here. Apologies, and all of that. But the brakes now work great, do not scream with the tortured grinding of metal-on-metal, and the car stops on a dime now. So, all in all, it wasn't too bad a day.
-- Chris Weigant
Follow Chris on Twitter: @ChrisWeigant
I spent the day delving into the mysteries of Volvo braking systems instead.
All you had to say was "Volvo"... :D
J/K :D
Michale....
I'm going to make a rampant speculation. If I were an analyst at S&P, and I concluded that on the basis of the ceiling deal, and the overall economy, I had to downgrade the USA, I might think today after close would be a good time to do it.
Why? Yesterday Bloomberg reported this:
Money market rates, which surged during the debate to raise the federal borrowing cap, dropped below zero percent as Europe’s sovereign-debt crisis bolstered U.S. government securities’ appeal as the world’s safest assets.
The European system is in very bad shape, and some countries, e.g. Denmark, are saying they will not support their illiquid banks on the backs of taxpayers. If capital flees Europe, where dey gonna run to?
So the market effect of downgrade would be more than mitigated by other events, and the political fallout minimized by Congress not really paying attention. So: if it were me, today would look like a perfect opportunity.
Downgrade update.
Looks like my instinct was pretty good after all. From CNN.
The lead:
S&P told White House it would downgrade U.S. – official
By: CNN Chief National Correspondent John King
NEW YORK (CNNMoney) - The Standard & Poor's rating agency served the Obama administration with notice Friday afternoon that it planned to downgrade the U.S. government's AAA credit rating, an administration official told CNN.
But S&P has yet to make its ruling public, and the source told CNN the agency is reconsidering after the administration challenged S&P's analysis of the government's finances.
Italics are mine. I suppose that's a mutually acceptable term for "threatened."
S&P told White House it would downgrade U.S. – official
By: CNN Chief National Correspondent John King
So, let me get this straight..
We went thru all that hassle, all that Kabuki crap to get the Debt Ceiling raised to prevent a downgrade..
And we STILL get downgraded??
So much for No Drama Obama, eh?? :^/
Michale.....