More great news for our country and the President. The President's policies are working.
This is also another death blow to Trickle Down. That failed economic theory that Romney and other conservatives admire. Because our debt level is coming under control, another downgrade will be less likely. The peak debt level was during the Bush years, when conservatives just loved them some debt.
U.S. debt has shrunk to a six-year low relative to the size of the economy as homeowners, cities and companies cut borrowing, undermining rating companies’ downgrading of the nation’s credit rating.
Total indebtedness including that of federal and state governments and consumers has fallen to 3.29 times gross domestic product, the least since 2006, from a peak of 3.59 four years ago, according to data compiled by Bloomberg. Private- sector borrowing is down by $4 trillion to $40.2 trillion.
Downgrading the U.S. is premature when the two-thirds of American debt that is private is shrinking, according to Jim Vogel, head of government agency-debt research at FTN Financial in Memphis, Tennessee.Courtesy of fellow kossack Anti Warhol:
“When one trend goes counter to the only one that they seem to be looking at, that throws up a flag,” Vogel said in a Sept. 27 interview in reference to the ratings firms. “If private debt is getting on a much firmer credit foundation, why do we have a 2013 deadline for one of the thorniest fiscal problems of an entire generation?”
You know what this means, right? (1+ / 0-)
Cue the Debt Truthers...
What is a band without skyscrapers?
by Anti Warhol on Wed Oct 10, 2012 at 07:10:47 AM PDT