Don’t f*** with Uncle Sam:
The Securities and Exchange Commission intends to scrutinize the model used by credit-rating firm Standard & Poor’s to downgrade long-term U.S. government debt, following accusations by the Treasury Department of a $2 trillion miscalculation, according to people familiar with the matter. …
The SEC’s exam unit also is looking at [...]
By now everyone knows that S&P downgraded the debt of the USA from their top rating, AAA, to their second-highest grade, AA+. Most of the commentary has been of the pin-the-blame-on-the-donkey variety. For all most people know, this is the collapse of the currency and the financial system and their biggest concern is that Obama [...]
All I can say on the downgrade fallout is this from my article of July 30 on “What Would Happen If U.S. Defaults“:
After some days of uncertainty, market drops, rates go up 20 to 50 bps, media hysteria, bargain hunting, market surges, Treasurys stabilize, rates moderate after some weeks as money chases Treasurys again.
I was [...]
This is an interview of David Stockman on Bloomberg Radio today by Kathleen Hayes. David goes into the budget crisis and the downgrade. As usual he pulls no punches.