The guys whose insight was so keen it led directly to the crash of the last two years and who have decades old track record of being wrong about everything have decided to wreak havoc on the markets this morning:
Shares on Wall Street opened sharply lower and Treasury prices fell on Monday after the Standard & Poor’s rating firm lowered the outlook for the United States to negative, saying that there was a risk that lawmakers might not reach agreement on how to address the country’s fiscal issues.
“More than two years after the beginning of the recent crisis, U.S. policymakers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures,” a credit analyst with Standard & Poor’s, Nikola G. Swann, said. At the same time, the firm affirmed the government’s AAA rating.
Both President Obama and Republican lawmakers have suggested plans to cut the federal deficit by at least $4 trillion over the next 10 to 12 years, but by different methods. And Mr. Obama plans to take his message on the road this week, traveling to the West Coast to promote his plan, which combines spending cuts and revenue increases.
The Republican blueprint written by Representative Paul D. Ryan, the Wisconsin Republican who leads the Budget Committee, includes cutting non-military spending, and a politically charged proposal to fundamentally reconfigure Medicare.
While the S.&P. said the proposals were a good starting point for negotiations, “we see the path to agreement as challenging because the gap between the parties remains wide.”
“We believe there is a significant risk that Congressional negotiations could result in no agreement on a medium-term fiscal strategy until after the fall 2012 Congressional and presidential elections,” the statement said.
If I were cynical, I would suggest this is all part of the grand plan to sustain the wealth transfer of the last few decades. Now that most everything has been looted, it’s time for austerity for the have-nots. Pensions need to be slashed! Social Security is too expensive!
But don’t you screw with the tax cuts or the military. And don’t you dare ask S&P who pays their bills. They are just offering 1st Amendment protected speech!
It’s all a big game, and you don’t get to suit up and play.