Tornado Alley (PROG)

[ordinarydude]

"...The item about a possible down grade of US debt comes from the same company ( Moodys ) that put AAA ratings on all the mortgage junk that came out of the subprime loans."

A couple of pointers:

1. The ratings companies are just as guilty as the prime/subprime lenders, banks, monoline insurers and construction companies that helped fuel the housing bubble for the past 10 years or so. Their credibility has been damaged when they stamped garbage with "AAA" ratings.

2. When it comes to our national debt, it's out of control. But it's nowhere near as bad as other nations (particularly Greece, Ireland, Spain, Portugal, etc).....which leads me to my last point.....

3. .......the last thing Moody's, Standard and Poor's, Fitch, A.M. Best, etc are far more interested in seeing other nations get downgraded. Remember, most commodities are denominated in U.S. Dollars.......

"... The US better get the excess spending under control else we will end up like Europe."

In principle, I agree. But again I must emphasize the importance on making our government both efficient and relevant. We cannot allow tax cuts to continue, nor can we continue funding bloated and unnecessary programs.

Unfortunately we are left with higher taxes and (when the economy picks up) higher interest rates. And those interest rates are going to be EXTREMELY high...mind you.

Ordinary