Trust me, I understand. This is no way to introduce yourself to The Blaze audience, but … I have to do it…because it’s true. Paul Krugman is right.
That is not a sentence I make a habit of repeating. But when Krugman says it doesn’t matter whether the ratings agencies (S&P, Moody’s, Fitch) downgrade American debt from AAA to AA … he’s right. That’s not a political thing, a partisan thing, a left-right thing, it’s just an economic reality. Let me explain.
First thing first. Let’s not pretend that S&P, Moody’s and Fitch are pillars of wisdom and foresight with a stellar record of accuracy. In fact, in the clutch they’re less Dirk Nowitzki and more LeBron James. From 2002-2007 the ratings agencies slapped AAA ratings on subprime and Alt-A securitized loans that amounted to crap and almost sunk the economy.
Secondly, the opinion of the ratings agencies are just that…opinions.
To read the entire column…click here.