Tuesday, July 26, 2011

The US Will Lose It’s AAA Rating.

So says Pimco's Mohamed El-Erian (July 25, 2011)

Let’s see? Well, the President, the Secretary of the Treasury, and the media say we will default if we can’t borrow more. True or not, and it’s not, an organization that says the only way that they can pay their debts is to borrow more just doesn’t sound triple-A to me, but I’m not a rating agency. There are reasons to raise the debt ceiling, but the ability to service our debt isn’t one.

You also have to wonder about an organization run by people who are either willing to make very irresponsible exaggerations or willing to pretend they’re broke. Then on the other extreme we have people advocating that we declare ourselves broke. When the extremist on the left (like Obama) and right (like Bachman) represent the country, AAA won’t last. It isn’t deserved. It’s just a matter of time.

So sad. Truly a post one wishes was avoidable.

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