Now, we are looking at a world where the Treasury isn’t AAA/Aaa anymore and things don’t look all that good. Standard and Poor’s have decided today to cry wolf on the US debt situation by changing the outlook for US debt from stable to negative. Well duh!

The situation hasn’t materially changed in the last several months as we continue to print money as fast as possible and turn the Fed into the government’s lender of last resort. So why today? Maybe it just took S&P that long to finish the report or screw up their courage enough to take the whack they are going to take from the Treasury for stirring up controversy? Maybe this is a response to the debate on the debt ceiling or to the budget (see below). Read more