Tim Geithner (Sec of Treasury) said that there was "no justifiable rationale" for the U.S. credit downgrading by S&P. The Omaha oracle, Warren Buffet, stated that Standard & Poor's had erred in lowering the credit rating. As well as, John Bellows (Acting Secretary for Economic Policy) joined in with Geithner and Buffet stating that it had been a math error on the part of S&P. They had added the same $2.1 trillion to a different baseline which changed the numbers considerably. Nevertheless, S&P acknowledged their mistake but changed their rationale from an economic justification to a political one. Consequently, this is having a huge negative effect in many ways. European Central Bankers are holding a crisis meeting to figure-out what this will mean to them and how to stem the tide of the tsunami that is already hitting their shores. Michele Bachmann wants Obama to fire Geithner (memo to Michele, Tim said on June 30th at the Clinton Global Initiative, that he was considering leaving the government sector after the collapse of Wall Street, Bear Sterns & Lehman Brothers in 2008, and now this federal debt debacle...he wants to go). So this might be a long week-end of wait and worry as we wonder how this will affect the global markets and our own markets on Monday. Whatever you do, don't watch the link below or you really might not be able to sleep.
http://marcfaberchannel.blogspot.com/2011_08_02_archive.html
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