Oh, wow.

You go for a perfectly innocent rehearsal dinner and come home to a debt downgrade. I must admit: this feels sadly apocalyptic.

Seventy years. That’s how long it’s been since something like this has happened. Obama is presiding, along with a Democratic Senate and just off a complete Democratic trifecta in the House, Senate, and Presidency in 2010, over a very destructive phrase in American history. Since it appears Obama was hell-bent in bringing us down, I guess he wins.

Ok, I’m usually pretty tolerant, but all you loyal Democrats pointing a finger at other than yourself? I’d be laughing at you, except you dragged me down with you.

I’m not impressed.

Comments

  1. Ford Prefect says:

    Oh, so Dubya began two wars and enacted massive tax cuts as well as a huge entitlement (prescription drug) program, being responsible in his 8 years for at least half of the national debt, but it’s Obama who is hell-bent in bringing us down? OK, got it.

    http://www.cbpp.org/cms/?fa=view&id=3490

  2. Randy in Richmond says:

    Total coincidence but I went to see the movie Bridesmaids tonight (Friday). Their rehersal dinner was anything but innocent and I laughed my head off. Anyone not seeing this movie yet–I would highly recommend it. Nothing deep, no one with super powers, and no big names but it is very entertaining and verry funnny. If coarse language is not your thing do something else.

  3. Obama promised to end the wars and did nothing. Obama spent in a stimulus that didn’t work. Obama needs to eat his peas and take responsibility here.

  4. Randy in Richmond says:

    Prefect
    That huge prescription drug program you refer to has been a substantial success, coming in billions of dollars under the projected costs. The main reason for that is the plan allowed private participation and now former critics are praising the results. It almost didn’t pass because Democrats thought the program as designed was too stingy and the private sector involvment was too large. Both sides now declare the program a surprising success.

    http://www.washingtontimes.com/news/2010/aug/16/bush-drug-plan-beats-cost-mark/

    And yes, Bush raised the national debt $4 trillion in his 8 years, Obama has raised it $4 trillion in about 30 months.

    But to put it in clear terms, the Chairlady of the Democratic National Committee, Rep. Debbie Wasserman Schultz, has stated on several occassions: “We own the economy” with the ‘we’ meaning the Democratic Administration. I’m willing to take her at her official word.

  5. J. Strupp says:

    S&P’s downgrade means nothing.

  6. Nothing? Really? I guess it’s funny they’d been using the system since the early 1900’s. Granted they don’t have a great track record with all the sub-prime mess, but I would expect it to mean something. The credit rating has been used as a political baseball for years from local communities to national governments.

    I will admit the markets are very unpredictable in how this will be absorbed. Obviously a lot of people knew it was coming.

  7. J. Strupp says:

    The world doesn’t buy and sell U.S. Treasuries based on what rating agencies recommend.

    U.S. debt continues to be the safest asset in the world. We are currently paying about zero on 3 year Treasuries and demand remains strong over the entire yield curve.

  8. J. Strupp says:

    Didn’t.

    Investors were SO worried about S&P’s downgrade of U.S. debt rating that they flooded out of global equities and piled into U.S. debt, dropping 10 year Treasury yields to record lows. Again.

    Markets have been collapsing for more than a week (before the downgrade). Perhaps it has less to do with our debt rating and more to do with the fact that the largest economy in the world recently told global markets that they were more interested in reducing deficits than sustaining growth and global markets are adjusting to this reality.

  9. Strupp, what should one do when the market tanks? You sell your stock. If you do not buy bonds, then what? Flood the global market with dollars by placing them in banks?
    Of course, people bought bonds. A natural reaction to selling stocks, I say.

  10. J. Strupp says:

    Absolutely.

    But it’s not that they bought bonds Dale. It’s that they bought short term U.S. Treasury bonds at record prices, yielding near zero the first trading day following a “downgrade” from a so-called reputable rating agency. Because Uncle Sam’s paper remains the most liquid, safe haven asset in the world regardless of what a rating agency with a terrible track record has to say.

    What happened today in the sovereign debt market runs completely contrary to the idea that the “downgrade” on Friday had anything to do with the collapse in equities today.

  11. Bonds have been at a negative return off and on for months now. It’s nothing new.

    Ok, I’m going to say one very scary thing and then shut up about it: There’s too much money out there. The only way to solve this one is inflation. It’s going to be ugly.

  12. J. Strupp says:

    There are a lot of folks out there buying the heck out of 30 year treasuries below 4% and TIPS at 1.7% that don’t agree with you.

    But I hope you’re right. I’ll take the printing press to an outright deflationary default anyday of the week and twice on Sunday.

    Unfortunately, the money stock is just sitting around in reserves not doing a damn thing right now so we’re gonna get the latter I’m afraid.

  13. while i have no answers, political or not, the cheap and reckless home loans, credit card debts and selfish spending by the people is a large part of the downfall. personal credit has already been at risk. we are a nation of luxery. so be it. now who is to blame for the insurance company downgrades ? is it their faulty financing, over reaching annuities and broken promises (see all the litigation and fines ) ? are families broke who go each year like a pilgrimage to exotic places and who give their children everything under the sun ? the reality is that DC will not cut out the pork, the pentagon will not cut out buying arms and the pols will spend more to seek office than we all earn in a lifetime. gambling and drugs are an expensive addiction.

  14. ‎”If the US Gov’t was a family, they would be making $58,000 a year, they spend $75,000 a year, & are $327,000 in credit card debt. They are currently proposing ‘BIG’ spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand.” – Dave Ramsey

    –This is from the Facebook wall of a guy who is under 25 years old. It does give me hope for our future.

  15. never heard of ramsey unless he is a baseball player. too many bloggers to read . i like our local people. but, i do agree that the govt spends too much for everything. no comparative bids, insider deals and political paybacks gets you nowhere. who is the Super-Statesperson to get us on the right track ?

  16. J. Strupp says:

    So what happens when old man Ramsey loses his job? In the real world, he pays the bills he can with his unemployment check and he puts food on the table for his kids while he looks for work. The credit card will probably still have to get used.

    Now we’re saying, he should starve his kids, cut up his credit cards immediately and pray the job fairy will come through the window at night and put him back to work tommorrow.

    All because we’re afraid that his $327,000 debtload at 3% interest payment locked for 10 years is going to hurt his kids someday in the distant future.