Rarely has a credit rating company made such an astute observation of the human condition. “We believe there is a material risk that U.S. policy makers might not reach an agreement on how to address medium- and long-term budgetary challenges by 2013,” Standard & Poor’s said on assigning a negative outlook to the U.S. AAA-credit rating Monday. Full Story »
Posted by Jon Mitchell - via Real Clear Politics
Caroline Baum takes a unique approach in her opinion column on Standard & Poor's assigning of a negative outlook to the United States AAA credit rating. Instead of focusing on the integrity of Standard & Poor's assessments she confronts the elephant in the pink tutu standing in the room which is the risk that our policy makers may not reach an agreement on how to confront this problem. Caroline presents her case in five acts that are arranged chronologically for the reader to evaluate. Ms. Baum doesn't assign blame she simply states facts, and admirable quality for an opinion piece, allowing the reader to choose a side to defend or possibly stand with her comfortable in the knowledge that the problem is not anyone – it's everyone.
This article says a lot even though it is very brief. Caroline Baum just like many of the other financial analysts, economists, or policy activists is struggling to find a way of delivering the information to the people who really need to be processing it in a manner that will be both interesting and informative. Unfortunately most do not see what the real issues are because both sides are spending all their time pushing financial scenarios with unsubstantiated projections that always rely on "a best case scenario" which is usually at best improbable and at worst impossible. Everybody wants to cut spending just as long it's not their spending that's being cut. The truth is that to balance the budget and get this country moving in the right direction will take cataclysmic change affecting everyone. From our increase profits at any cost business model to the realization that living in a great society based on freedom is many things but it's not free.