Friday, August 05, 2011

S&P = Stupid & Poor

Smart investors don't give a flip about S&P. Why do we even have credit rating agencies? Must we really outsource our own thinking to some big company that overvalued the mortgage-backed securities that turned out to be worthless and led to the biggest recession since the Great Depression? Records show they didn't even understand what they were rating then. Why should we think it's any different now? I don't think we should. The 10-Year Treasury is at c. 2.5%. The world is begging The United States to borrow and invest in its economic recovery. This isn't Europe. We're strong. And S&P a) is that stupid or corrupt, or b) has been set up.