You might have thought it obvious that the stock market would go down after S&P downgraded US government debt. The bad news about US debt made investors worry, and worried investors are usually less enthusiastic about holding stocks.
But there is something wrong with this view.
Tuesday, August 9, 2011
"Cheap Talk" on the apparent paradox of Treasury bonds becoming more sought after as a secure investment in the wake of their "downgrade" by the "geniuses" at S&P:
|The GOP: flying on a wing-nut and a prayer.|
James Suroweicki, at The New Yorker, argues that the country would be much better off if the Republicans abandoned the political hostage-taking and the Tea Party "crazy train" - and went back to the more respectable and risk-averse business of simply being corporate lapdogs:
Excerpts of the basis of their "AAA" assessment, via New York Times "Economix":