...so, after the market on Friday last, S&P decided to downgrade the credit rating of US Govt debt, even though the teabagging terrorists failed in their attempt to have the U.S. Govt default for the first time in history.
Quite naturally markets around the globe have used this as an excuse to collectively wet themselves and massive sell-offs have ensued.
They are forgetting one important thing: gettting downgraded by S&P, one of the rating agencies that is up to it's contingency fees in the CMO/CDO meltdown debacle that nearly caused the last crash in 2008, is rather like being told by Rupert Murdoch that you have no journalistic integrity. In other words, you have to consider the source. (Don't forget S&P made a $2 Trillion dollar error in their calculations and that still didn't deter them from making the downgrade anyway, and why would it, what's a couple of dozen zeros before the decimal place between friends?)
Bottom line, it's all a tempest in a teacup and the sign that you really ought to worry is if the Chinese suddenly stop buying dollars and switch to something more reliable. Like seashells, or magic beans.
Have a great week you all!
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