And so on Monday, August 1st, World was once again saved by American Superheros(!!).
Two days before the ‘hypothetical’ dead-line of the US default, the drama on the Capital Hill ended. The President and the Democratic & Republican leadership did what was expected of them. They showed that they are no different than their counterparts in Asian & African developing democracies. They didn’t behave as ‘Peoples representatives’ instead they acted as a typical ‘incumbent’ facing an election in 15 months.
US has the top notch credit rating since their inception…News Flash…S&P cuts US credit rating from AAA to AA+ with negative outlook. (Friday, August 05, 2011 10:30 pm) and I thought that my 401(K) won’t see the dark days of 2008, come Monday and I will be proven wrong…again!!
Just when we thought that S&P will play the ball. But then again what credibility does the credit rating agencies have? After all they had re-confirmed AIG & Lehman’s AAA rating just before a week of Lehman going under. So, hopefully market will take that into consideration when it opens on Monday.
I have heard many of my friends say that if US was a company or a household, it would have not raised the borrowing limit, after all everyone should live in their own means. True. Agreed, but US is not a company run by a CEO nor it’s a household whose decisions are made by the bread earner, instead US is a ‘democracy’, a ‘capitalist democracy’. The decisions are not based on ‘right’ or ‘wrong’, but on ‘popularity’.
A society reflects the character of the citizens of that nation and when those citizens are living beyond their means (from 2000 to 2007 US saving rate was 1-3%, it went negative briefly in 2005) how can we expect the nation to live within its means.
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