Tuesday, August 09, 2011

They helped

They Helped

by Ted Rudow III Monday, 08 August 2011
Standard Poor’s decision to downgrade the United States has led to a lot of criticism of Standard Poor’s. The White House called their performance, which included a miscalculation of about $2.1 trillion, “amateur hour.”The move by S&P, one of three leading credit rating agencies, came just days after Congress approved a $2.1 trillion deficit-reduction plan.S&P didn’t just miss the bubble. They helped cause it. They were paid by the banks to award their AAA-stamp of approval to all manner of financial products that were anything but riskless -- which, ironically, makes them an accessory to the resulting explosion of U.S. debt. Lowering the nation’s rating to one notch below AAA, the credit rating company said "political brinkmanship" in the debate over the debt had made the U.S. government’s ability to manage its finances. There’s not much mention anymore of the recession or economic hard times, because the people at the top are doing great. And that is an upward redistribution of wealth by cutting taxes for the wealthiest, and in subtle ways, raising them for the poorest and for the middle class. The big business game is to see how fast you can rob the other guy.
Ted Rudow III, MA

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