With grand ignorance and lack of common sense, one can become sole super power - USa has been a sparkling example! And their success is so seductive it allures the rest of world to borrow its super-ignorance. Just like unalloyed belief on CREDIT RATINGS!
I can see how ridiculous some "standard" American guy poor of common sense tells "NO!! Her size is not AAA but AA" whole world starts crying!! Trust & reliability on the by-products of their ignorance, is matchless! Mr. Rater is so flawed and nonsense that countries like PIGS (Portugal, Italy, Shiva shiva Greece & lol Spain) who are BIMARUs of the world have better rating than India. If this is not whimsical sway of moody Fitch then what else! Please compare assets, real growth, or SAVINGS etc...India fares better. Baseless. Anyways let the credit ratings go.
Focus on the issue: US economy is a grasshopper, they never save. They spend 37% of GDP with only half of them paying taxes!! And now they have borrowed everything they can to the point of default, hence cannot borrow more. To make matters worse, they want to attract borrowers now either by increasing yield on their bonds or lessening the price or both! But how shall they redeem bond holders?? And how can they promise higher yield when their growth is almost halted?
Dear America, at least for economic reasons, you should have stopped investing in Iraq, afghan & other wars. You don’t have to borrow and invest in war. Unemployment in your country is not a result of outsourcing rather it’s a result of your govt's policy making and lack of progressive foresight. The catastrophe, which you have created, is indeed a triumph of your unregulated capitalism, unbridled globalization and canonized ignorance. Or on a second thought, you can consider it to be a last leg of official transition of power from West to East (rather from single point of concentration to globally distributed power poles!) in the background of strange economic cycles.
· First, present the inherent nonsense of these rating agencies & communicate to the world not to take seriously. Shut the agencies ass!
· For god's sake, make love not war! You can use all that budget and healthy workforce productively in spurring growth
· Keep a check on your love for capitalism. Because capitalism is not an adult, it is like a teen, there should be timely n friendly guidance.
· Tell academicians to teach CAPM is just a vague measurement and not to take American bond as Risk-Free while calculating :) This is a spoilsport. If ever possible, slowly integrate fractal geometry.
· And sell gold now.
