Tuesday, August 9, 2011
S&P Blames GOP
Interesting insight in a quote from the S&P Ratings Board on why they downgraded US Treasury debt - "Compared with previous projections, our revised base scenario now assumes the 2001/03 tax cuts, due to expire, now remain in place. We have changed our assumptions because the majority of Republicans in Congress continue to resist any measure that would raise revenue."
Strangely, that hasn't been getting much press. I would have guessed the liberal media would have heavily promoted that. And, it looks like a moot point anyway, because in the sell-off investors continued to go to T-bills, even though other countries still have AAA-ratings. Guess we still are the big dog. At least the market got up today and regained some sanity. Overall, the Dow has way too much influence on our psyche anyway. Even as the market moves along - fast or slow - wild swings in daily trading bring about talk of doom and gloom. And even as the Dow was rising the last two years and companies were posting record profits - which in turn drove up their stock prices - unemployment and the misery index remained high.
Thus, I am curious the proposal to put a minor - like .0025% - tax on stock transactions? Some are proposing it as a way to cut down on speculation and the wild swings in the market. It could raise some revenue at the same time it regulates the uncertainty. Ultimately, it'll be a no-go - but it's a reasonable idea.