Curve Ball: S&P USA Downgrade

The markets were down heavy this morning.  I stood back for the most part until most of the blood had been let.  But in the end I was a net buyer.  I don’t want to make too light of the S&P downgrade here, because who knows where we bottom out (1240-1280++?), but this has got to be one of the purest examples of the Poindexter Theory at work.  It’s either a purely academic or political exercise.  They told us nothing we didn’t know before.

My ego wants to believe that my generation will be witness to fantastic world changing events.  Maybe just so I can tell my kids that I was there.  Every generation desperately wants the satisfaction of knowing they were the last and tries to weave a narrative of how their acts will end humanity.  Nothing ever comes to pass.

Are you willing to bet that the next great paradigm shift in finance is that US Treasuries are no longer considered an essentially riskless asset?  Are you willing to bet your family fortune that the greatest political, economic, and military force the world has ever known is going to fold up the tent after a mere 230-some years?  Or do you think the guys with the guns might just pull through after all?  Site all the statistics and ratios you want.  The US is not going away.  Please be rational.

Check out the Drudge Report for some lulz:

“Worst since Pearl Harbor: Debt blow for economy…”

Scared yet?:

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