The man who yesterday got into a heated argument with the chairsatan on whether gold is or isn't money (a Bernanke response already mocked to death so we will leave it alone), shares his take on the most recent bout of scaremongering by Moody's (with S&P doing in private today what Moody's did in public yesterday) with Bloomberg TV's Erik Schatzker. When asked if the American AAA rating is worth saving, his reply: "probably not. I think if you had a market evaluation on this issue, it should have marked down a long time ago." The reason the downgrade will come regardless is that "ultimately that is going to happen anyway because we are insolvent." The big picture: "I think it is part of the game to make sure everyone is fearful so we continue this process. Long term, I think raising the debt limit is a negative because it delays the inevitable. It will give us much bigger problems down the road. Today and tomorrow, if Moody's does not lower the bond rating, it will be helpful in the short run. In the long run, it will be more devastating because Congress will go back to their old habits again." Said otherwise: Moody's is concerned about US debt now, but is not concerned if US were more tomorrow - sheer idiocy.
These are the same ratings companies that told everyone that MBS's and the credit default swaps were AAA investments in 2006 before the crash! The ratings they gave and continue to give are BS and can be bought by banks or governments to provide the sheep with a sense of security while investing in garbage! Our rating should be a lot lower than it is, and the fact that it is not, confirms the complicity in the fraud by all ratings agencies. This is a fear mongering announcement to get the debt ceiling raised and defraud us one more time.
Thank you Ron Paul for bringing this to light!
With all due respect to Dr Paul, he did not bring this to light. Many have been screaming this for years. At the end of the day, there's no money to be made truth, fairness, equality, etc. Play your cards right and you'll make a fortune off the buckling of the greatest nation on Earth.
This provides a good sound bite for the news. Most people do not have a clue about the complicity that the ratings companies had with their BS ratings. I understand that Dr. Paul is not the first, but he is a public figure running for President and it should get coverage.
@DPH Still more news from Bizarro World. At least Ron Paul throws us truths when the ratings companies play games. "Just the facts ma'am!"