Standard and Poor's Trick

At first it might seem justifiable that S&P had nailed the Republican Party for letting its Tea Party wing drag it into offering the United State's credit rating on a stone for sacrifice to their principles.  And in that case, Good!  That's what they deserve.  Maybe the Republican Party will cast those demons out!  And it is clear now that the Republicans will be back next time holding the national credit rating hostage again until President Obama kneels before them again.  Also we must remember that some of the GOP presidential hopefuls said the debt rating was a joke.  Bachman said she would not vote to raise it.  And then the Republicans ran it too close to the wire.

But a moment's reflection reveals that this has happened before to other countries.  It was not a real big deal to them at first.  Not at first.  Their interest rates did go up.  Then about three months later their interest rates went up again.  And then about three months after that, they went up again.  So somebody is paying a lot more money than they were just three months ago and even more than they were paying six months before.  A lot of money is rolling around.  Somebody is taking some of that home.

I suspect – but can't prove (wish I could!) – that millions and millions of dollars are now  poised to move to those individuals who made that decision in S&P to downgrade the US credit rating.