Aug

8

 The  S&P kindly attributed the ratings decrease to the "republicans who refuse to vote for increased taxes on the rich". How according to plan. How perfect to keep us small. To march forward with the idea that has the world in its grip. What fools they think us mortals. The regrettable thing is that if the common man were to see through it, and understand that the whole purpose of the ratings decrease was to increase taxes and gain more power and perks for the higher authorities, as there is obviously no chance of a default now or in the future as exemplified by the long bond yield of 2.2 %, which encompasses inflation expectations of 2% a year, a return of say 0.5 %, and a minus chance of default, why then the market might not go down on Monday, and the argument that we have to raise taxes and get the Republicans to appoint fellow agrarian reformers to the committee, might fail, and then the whole plan, the whole deal with the friends at the agency, all the posturing and flexionism, would be in vain.

So the stock market on Monday and Tuesday will fall. Let us remember where the index was on Friday 1197, and compare it to where it ends up when the committee issue the report, and point out that after the downgrade the market was up 10% or so to Thanksgiving. That will be a start. But then we'll have to explain that the reason the market went down in the first place was the failure of the Tea Party congress to reign in the business as usual, the fomenting of the idea that has the world in its grip et al.


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