• Lou Cabron commented on the blog post S&P Plays IMF To USA

    2011-08-09 22:31:43View | Delete

    Actually, S&P seems genuinely interested in getting Republicans to surrender to tax increases. In part they issued the downgrade specifically because “It appears that for now, new revenues have dropped down on the menu of policy options…”

    And they even reiterate that clearly in the full text of their announcement, saying they’re pessimistic because “…reaching an agreement on raising revenues is less likely than we previously assumed.”

    Paul Krugman thinks the markets tanked on Monday because of one hedgefund manager — and not as a reaction to the downgrade. (A theory which is buttressed by the massive counter-upswing on Tuesday.) He and others have argued that the S&P downgrade is irrelevant anyways to the U.S. credit. But the one good that might come out of it is it might convince Republicans to finally agree to some tax increases.

  • Lou Cabron became a registered member

    2011-08-09 22:26:47View | Delete