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Just the Facts: S&P's $2 Trillion Mistake

treasury.gov

241–242 of 242 posts

Re: Just the Facts: S&P's $2 Trillion Mistake

#241
post #237

Earlier quoted context omitted.

Actually, in this case, it's not that I think they are stupid; merely that they have lost touch with reality. An economist who denies the role of government in macroeconomics for ideological reasons may be quite bright and may be able to construct quite fearsome explanations for his positions, but he is deliberately ignoring both the reality of the present and the lessons of history.

I doubt that you can find me an anarchist member of the Chicago school. They all recognize a role for government, the debate is over how large and where that role is. The people you are bothered by are a straw figment of your imagination.

David Friedman.

Re: Just the Facts: S&P's $2 Trillion Mistake

#242

I continue to be amazed at how much credibility we seem to give this (and other) rating agency after they rated subprime-backed derivatives as safe, rated AIG & Lehman as safe. Is our collective short-term memory non-existent?

Rating agencies are irrelevant at this point. You'd have to a total economic ignoramus to think the US is AAA. This'll be abundantly clear even to the masses by next year.
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