August 8, 2011
It is rather ironic that the very industry that caused the collapse of the world stock market, and was then bailed out by the American taxpayer, is now turning its back on the federal government with the announcement last week that Standard & Poor was decreasing its bond rating of the United States to AA+. For all the talk of the national debt that President Obama has incurred, a great deal of it was due to bailing out both Wall Street (who in turn gave themselves record bonuses), and the Detroit automotive industry plus massive tax cuts to all those billionaire hedge fund managers.
As the first rating decrease in American business history, not only is it a slap in the face to the American taxpayer, it will most certainly bring about further market instability and cause all those baby boomers getting ready to retire huge adjustments to their 401(k) retirement accounts. Boomers should at least be thankful that Republican leaders weren’t able to convince them that turning Social Security into a stock market gamble a great thing.
Steven H. Spring