Hoist on Its Own Petard

Does anyone else find it funny that after being the butt of Congressional and Administration demagoguery, trying to lay blame for the financial crisis on them for applying AAA ratings to risky debt, that S&P's first visible step to correct such overly-optimistic ratings is to downgrade US debt -- based mainly on the fiscal management failures of Congress and the Administration.

By the way, many observers seem to be declaring this a punishment for not raising taxes.  The lack of accountability inherent in the government's spending like a drunken sailor, and then using such reckless and profligate spending as an excuse to raise taxes, just makes me want to scream.

  • Craig

    It is typical. Government distorts the housing market, then passes laws punishing banks. Government policy towards unions distorts auto market, then gov't passes laws screwing auto creditors. Government distorts health care market, then passes law giving itself more control over health care.

  • Mesa Econoguy
  • http://shylockholmes.blogspot.com/ Shylock Holmes

    Exactly. Even as recently as April this year, Congress was bashing the ratings agencies/ for causing the financial crisis by not assigning tough ratings soon enough:

    The problem, however, was that neither company had a financial incentive to assign tougher credit ratings to the very securities that for a short while increased their revenues, boosted their stock prices, and expanded their executive compensation,'' the report said.

    Well, consider that problem solved!

    I can just imagine the S&P executives are enjoying a tasty glass of schadenfreude right now.

  • Gaunilo

    Please, do remember that drunken sailors are spending their OWN MONEY!!

  • Arthur Felter

    My brother asked me if I were in Congress would I ever concede and allow a tax increase. At first I said "hell no." But I thought about it for a day or two, and came to this conclusion: I'll give you Clinton-era tax rates in exchange for Clinton-era spending (as percentage of GDP).

    Seems fair.

  • Boglee

    Hey, come on, lighten up on us drunken sailors 1. We only spend our own money 2. We quit when we are broke.

  • Frank Waleczak

    And I'll scream with you!

  • caseyboy

    And, having served as a "Squid" I can tell you we "drunken" sailors got better value for our money.