When known problems become “news” and we finally respond to it once it’s “official,” what does that say about our collective wisdom? The S&P downgrade of the US debt cannot possibly be a surprise to anyone who has paid attention. Since late 2007, the alarm has been sounding and each successive legislative move has only exacerbated the problems of our fiscal policy. Yet…this news is somehow news.
As I write this, the Dow is down over 600 points and gold is at $1,720.
A rating of AAA should mean something. For years, it hasn’t meant what it should have. When a country comes within hours of defaulting on its debt payments, it’s hard to argue that it should maintain it’s pristine rating. Do I wish the downgrade hadn’t happened? Yep. Do I think it’s unjustified? Look at the numbers.
Even the best teams have to lose from time-to-time to find their identity. Too much swagger generally precedes the fall. Winners get up and fight like an underdog. Let’s hope we still have it in us.