Maybe it's karma, or coincidence, or simply plain old common sense. But just yesterday this blog was about the incredibly bad job government was doing by its gross mishandling of taxpayer's money. And then today, Standard & Poor's Ratings Service, no less, warned that politics may be getting in the way of a budget compromise. In an announcement that started sending traded stocks down the chute, S & P said it was lowering the outlook for U.S. sovereign debt to "Negative" from "Stable" due to the growing deficit.
It reaffirmed the investment-grade credit ratings on the United States' long and short-term debt, saying the U.S. has a high-income, diversified and flexible economy that has helped it to encourage growth while containing inflation. But also said the country's ballooning deficit could offset those positives over the next two years, noting that the deficit grew to 11 percent of gross domestic income in 2009, much higher than the average of 2 percent to 5 percent in the previous six years.
Mary Miller, assistant secretary for financial markets at the Treasury Department, issued a written statement saying "Both political parties now agree that it is time to begin bringing down deficits as a share of GDP. We believe S&P's negative outlook underestimates the ability of America's leaders to come together to address the difficult fiscal challenges facing the nation."
So, maybe the folks inside the Beltway are finally being awakened as to the miserable money-management job they're doing, and that knowledgeable institutions are watching them closely. Because, as I wrote here yesterday, at present no prudent lender on the planet would willingly lend this government a dime.
That's it for today folks.
Adios
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