Welcome to the grand illusion
Come on in and see what's happening
--Styx
Today, S&P put the AAA credit rating of the US on 'negative outlook.' Credit default swaps on Treasury debt have widened. Current spreads suggest 1/3 chance that the US credit rating will be downgraded within two years.
Politicians who previously claimed that the credit rating agencies were reactionary (which they were are still are) in their ratings during the credit market meltdown are crying foul today.
We've noted it many times before. If we are not proactive in dealing w/ our financial situation, then market forces will put us into a reactionary position.
If (when) credit market confidence sinks, then the emperor wears no clothes.
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Debt levels will be three times current levels by 2030. Entitlements and interest alone will exceed total revenue by 2025.
Only 1 in 50 Americans needed Medicaid when it was first created in 1965, 1 in 6 Americans receives Medicaid now.
~Mary Meeker
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