Funny that shortly after the U.S. Congress passed the largest – and arguably most catastrophically stupid – deficit reduction package in history, the market promptly reacted by taking a nosedive.
Apparently, the ugly, job-killing “compromise” hastily cobbled together by U.S. lawmakers before fleeing Washington for a month-long vacation wasn’t sufficiently draconian or austere enough to placate the leading rating agencies on Wall Street. Which is rather curious when one considers that these same rating agencies are the very same firms that readily gave their triple-A imprimatur to the collateralized junk and other toxic inventions fabricated by their double-dealing investment banking clients before the whole egregious scam they were intimately complicit in collapsed like a house of cards back in 2008.
So why is anyone listening to them now? Indeed, why are they even still in the business of proffering their demonstrably worthless approvals?