And gave the raters 40 whacks:
1) To repeat Clive Crook’s point, S&P knows nothing more about U.S. budget prospects than you or I do. They’re saying they have an opinion on the state of Congressional-White house dealings on the budget. Fine. Go on a talk show or start a blog.
2) To repeat James Galbraith’s different but also true point, as long as the U.S. government doesn’t tie itself up in debt-ceiling insanity, it is not going to default on dollar-based bonds. It can’t. It controls the “means of production” for the dollars to pay off those bonds. If you’re worried about inflation, fine. But that’s a different matter, with a lot of other variables that count for more than S&P’s feelings.
What I’d really like to know is who S&P likes in the Hornets-Lakers series, or this season of American Idol. Their views would carry just as much weight. Also I’d like to know why the news ecology treated this as such a big deal.
When I saw what he had done….
You finish it. My rhyming sucks. But Fallows has been on fire lately.