Tuesday, August 9, 2011

The S&P Makes Me Moody, Part 2

So, as an update to my post from Sunday, it turns out that S&P, in their mathematical genius, miscalculated the debt projection by 2 trillion dollars. Yes, you did read that correctly. This was not just a simple mistake of forgetting to carry a 1. No, they were off by 2 trillion dollars, that is a 2 followed by 12 zeros. These are the people we are trusting to tell us who to trust with money?

In addition, guess where a lot of the money that was being sold off in the stock market on Monday was going? If you said US treasury bonds you are correct! In other words, the very same vehicles that S&P just said are not trustworthy is where Wall Street is wanting to put their money in order to protect it. Could someone please tell me how any of this makes sense?

Moody's has announced that they believe treasury bonds are still secure and will keep them at a AAA rating.

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