The blame for Standard & Poor’s downgrade of U.S. sovereign credit belongs almost exclusively to the president, the most socialistic American chief executive in living memory, but also to key congressional Republicans, who got carried away by their emotions. The president is Lyndon Baines Johnson, and the congressional Republicans are the 70 members of the House and 13 senators who, led by Rep. John W. Byrnes (R., Wis.), voted to create Medicare, a welfare handout disguised as an insurance program and structured as a Ponzi scheme. The handiwork of these illustrious gentlemen has taken some time to catch up with us, but catch up it has.
Take a moment to pity the fellows at Standard & Poor’s, the feckless Mister Magoo of Wall Street. Beavering away at a credit-rating agency is no way for a man to make a living in finance; an S&P drone may earn in a year what a serious money runner earns on a single trade, and his work is held in rollicking contempt by the guys with the big swinging dividends. The credit-rating agencies are basically the nerds who check Wall Street’s math after the fact, putting their official, federally recognized seal of approval on propositions of conventional wisdom that are by definition stale by the time the likes of S&P or Moody’s or Fitch gets around to them. But somebody had to be the first to say it: Uncle Sam is looking subprime. Ask Cassandra how that sort of thing turns out.