This Just In--S&P Rates it a AA+!

Standard and Poors downgrades US to AA+. This is the same group of folk who rated subprime mortage securities as rock solid AAA! And they were paid handsomely too for those ratings! For their third act, S&P to trademark AA+. This of course will destroy some players hopes of quailifying academically with their online courses....



While S&P downgraded US to AA+, it kept its rating of France bonds at AAA. US very unhappy. France rumored to be willing to surrender AAA rating....



For it third act, S&P to downgrade bonds to six months to two years....Barry Bonds that is

The craziest thing is what happened after the downgrade.



S&P says American Debt is too risky.

Investors say "oh no"

Investors flee the "risky" US market causing the DOW to drop by 5.5% -- the largest drop since 2008.

and what do they buy after they left?

Why, "Risky" but liquid US debt of course.



So the downgrade caused long term yields to DROP, and prices to INCREASE lowering the cost of debt for the US.



We should be downgraded more often....

Oh! There's a new chapter in the saga!



After S&P downgrades US debt, US regulators COINCIDENTLY begins investigating S&P and ONLY S&P (not fitch or moody's) for their role in the 2008 debt crisis.



Government says the timing is fortuitous since they'd started this months ago.



The rest of the world rolls their eyes and says "uh-huh".