Tuesday, April 19, 2011

S&P minces no words on "The United States of America" as outlook moves to "negative"

Go ahead and read Standard and Poor’s story on it’s rating on “The United States of America”.  It affirms the “AAA/A-1+” rating (not sure what that means), but labeled the long term outlook as “negative”, here

Ezta Klein, in the Washington Post, this morning (with his “lots of it” on domestic policy) explains how an economic (like a deer on a highway as on Allstate’s ad about “mayhem like me”) can freeze over uncertainty. And Congress is certainly creating uncertainty as to whether the US can fully honor its bonds (and T-bills, which suddenly aren’t as safe – and I have plenty of them).  Here’s Klein’s article.

Here is a video by Korelin Economics (and Roger Wiegand) on the downgrade:

He talks about the "eye of the perfect storm for gold".

There is never a time to be complacent. 

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