But I think you're giving the Republicans more credit than they deserve. The presidents men Bernanke and Geithner along with the puppets at GS, they are the ones to point the finger. Throw the crooks at Moody's and S & P in there as well, the're dirty too. They are the ones ALONG WITH our politicians creating the easy money policies. And along with the Republicans are not the Dems in bed with QE, bailouts, stimulous plans and loads of programs that drain the system and create natioal debt ? I think so. BTW- you telling me that BO does not want the US dollar low either ? C'mon.
You're got tunnel vision if you wanna give credit to only the Republicans. Plenty of credit(blame) to go around here. No need to make forecasts about why this might be happening... what has already taken place explains the story.
My conspiracy theory is that Republicans want to scare the bond market, stocks to tank, and the economy to falter on Obama's watch so they can win the White House and the Senate. S & P downgrades dollar debt, the stock market drops and now we are looking at a double dip.
Thanks guys. Why not cut taxes for the rich, while you are at it? Oh, you already did that... How about emasculating medicare? Tea anyone?
This isn't 2008 when a huge number of bonds were yielding 20+% and was a buying opportunity. There are no decent bonds yielding this much. A&P was yielding around 20% right before it went under.
Point is that a Greek default would send money flying from the Euro into the dollar, and that is not what the Fed/Obama want. They want a weak dollar, so they allowed the U.S. debt ratings outlook to go negative.
I just don't think much happens any more without the approval of the fed/government. It may not even be real pressure. It's almost like S&P checks with the government to see if what they are doing is okay.
I find it interesting that the US is grabbing all the attention. No actual downgrade today of US debt. However, the timing of these stories in Europe coinsiding with the story of a future US downgrade I find intriguing. US dollar index up a half percent today. http://www.cnbc.com/id/42640590