Who said investors were smart?
So, Standard and Poor’s downgrades the credit rating of the United States one notch – from Triple A to Double A Plus.
That’s no reason for panic. Not even Warren Buffet enjoys a Triple A rating. Only four of the Fortune 500 companies has been given a Triple A.
Yet, yesterday, panic did, indeed set in. Fanned by irresponsible reporting by the media – which treated the S&P decision like another Hurricane Katrina – investors dumped stocks like mad, driving the DOW down over 634 points.
Which is crazy. Look at the instability in Europe, Asia, and Latin America. No doubt about it. The United States is still the safest place in the world to invest. Anybody who sold stocks based on the actions of S&P is just plain stupid.
But we did learn one lesson yesterday: This deficit reduction business is serious stuff. And politicians have to stop playing politics with it.
The market crash is the direct result of the Republican Party’s refusal to compromise on a balanced plan to reduce the national debt.
This is the Tea Party crash – and they should be held accountable.
That’s my parting shot for today.