[quote=afx114]I’m not an economist, so maybe one can explain to me. If the S&P downgrade was such a big deal, why are people still pouring money into US Treasuries, driving it down to very low rates? Is it because the US is still the least worst of many worster options? (Yes, I just said ‘worster’).[/quote]
It’s okay, afx114. The financial crisis has been going on or some time, and the rabid press corps who are covering it for those of us “who don’t understand business” (yes, another priceless Rick Santelli moment on CNBC this morning) are desperate for new adjectives. Word is that they’re offering big bucks for novel descriptive prose that will produce panic in their viewers, and incite them into looting their local Super WalMart stores.
I’m thinking “worster” says it all. In fact, I’m getting my flame thrower out of my kids’ old toy box as we speak…..
As for the reasoning behind the brisk business in U.S. Treasuries? S & P planned it that way, naturally.
