An economist at BNP tells Bloomberg that the US debt rating will likely be downgraded.
Anyone who relies on Moody’s or S&P to analyze the US’s ability to repay its debts needs to have its head examined. Markets do nothing but make that judgement every moment of every day. This isn’t some one-traffic light municipality in Nebraska we’re talking about, it’s the Big Kahuna…
Would risk sell-off on a US downgrade? You bet. But within 24 hours we’d be back to business as usual. The ratings are of more politically important than they are economic…
