Rating Agencies Didn’t Wait Long After Obama’s Reelection to Threaten On Downgrading US Debt

As the European Union and ECB got into complete crisis mode, the rating agencies had no choice but to downgrade the debt of many nations. Not just the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) but all the rest too. Meanwhile, they started looking at the US debt and considering the GDP-to-Debt ratio. Trust me it is not pretty and unfortunately under the Obama Administration it’s looking already worse. Consider that this Administration, the same one the voters just reelected, has additional no less than $5 Trillion in new debt – in only 4-years. That is a staggering by any sense of the imagination, and it is also so irresponsible that one might already ask; what the hell were they thinking.

Indeed, I do agree that is a fair question, providing anyone really was thinking, or maybe it was just the ghost of John Maynard Keynes? But, then again I suppose already he might look back and say; “you took my economic philosophy out of context,” nevertheless, it is what it is and that was at the minimum some of the justification for the outrageous spending, no matter such past period quotes such as; “you can’t borrow your way out of debt,” which in hindsight seems like pretty shared wisdom, meaning you don’t have to be a member of the Tea Party to figure out what that really method.

Okay so, what’s happening now, only one day after Obama has been reelected? Well, the rating agencies have announced that they are threatening to downgrade US Debt and they are not kidding around. Why did they wait until after the election? Well, I have my theories on this, but they probably didn’t want to get into the politics or be accused of taking sides. nevertheless, maybe they should have, and had they made a statement, the election might have been different.

After all, 60% of Americans polled upon exiting the surveys noted that their number one concern was the economy. nevertheless, Obama received the majority of the popular votes, so I guess it wasn’t really too big of a concern, or perhaps they were just ignorant and misinformed. Not more than 10-hours after the election, two of the major rating agencies issued warnings of an impending downgrade. So, well, now you know, now everyone knows, and perhaps already the naïve voters who were not paying attention know.

It’s my speculation that the rating agencies didn’t want to make mention of it for fear of regulatory retribution, especially considering their poor performance with stamping triple-A on so many of those mortgage bundles which helped rule to the 2008 economic crash. Please consider all this, because politics is real and it really messes with our economy.

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