My readers are emailing me — swamping my inbox, actually — wanting to hear my opinion re: the US credit downgrade that occurred earlier this Friday evening. Here is the post I issued on my Google+ profile. Posting it here as well in slightly longer form. Spread the word.
In response to the credit downgrade, the first in our nation’s history:
1. The politicians who botched the debt ceiling deal until the last minute should have to disclose if they profited, or are profiting from destruction of the United States’ credit rating. (e.g. do they have significant holdings in gold, silver, or are they shorting US Treasuries?) If the answer to that question is yes, is that not a form of high treason?
2. Does anyone really think that higher car loan rates, higher credit card rates, higher student loan rates, and significantly more expensive small business loans and residential mortgages will be GOOD for the economy?
Please share this with anyone who cares. It’s easy to dismiss economics/politics as boring or not relevant, but this is catastrophic — and it happened simply because Congress sucks. Our debt levels are not out of control, the jobs market is improving, and so forth.
Unfortunately, it’s a feedback loop. The downgrade could send us into a Depression. A deep, scary Depression — bread lines and shame.
Businesses and consumers no longer will have access to reasonably priced credit. When access to capital suddenly dries up, the entire economy becomes toxic. Think of what would happen to the whales in the oceans if you were to suddenly kill off all of the algae in every ocean (which they feed off of).
This downgrade is the result of one of the worst Congressional leaderships in US history, and it will hurt everyone — college students, working class, middle class, entrepreneurs, millionaires.
EVEN DURING OUR WORLD WARS, WHEN OUR VERY EXISTENCE WAS AT STAKE, WE NEVER FAILED TO MAINTAIN OUR CREDIT STANDING WITHIN THE GLOBAL ECONOMY.
We deserve answers. We deserve to know who profited from this catastrophic, disgusting failure of leadership.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.