Posted by: lazilox | August 8, 2011

This Blog will be moved eventually.

I am realistically considering switching party affiliation. I don’t think I can realistically stay aligned with a party that actively gambled with our nation’s solvency. For what? For a meager handful of points in some opinion poll designed for a distant election, akin to effectively shopping for Christmas like this in March? To simply attack a president’s image since there are currently no viable candidates worth investing enough in? To reiterate, the republicans just purposely induced a recession out of thin air for a few points on an opinion poll. If they choose to blame this on the democrats, and worse: people believe them, I may lose faith in the system all together.

Granted, I wouldn’t become a democrat. They just acted like progressive parents who use timeouts in lieu of actually beating their kids. Great job. You allowed this to unfold.

Now, I get it. It’s all the entitlements, which a large part of both sides’ constituency depends on. The reason on paper that S&P downgraded us is because things are a little staggering and disappointing. What we didn’t need was Congress thrusting this issue into the limelight, and blaring it all over the world for 2 weeks.

What happened today was absurd, but not at all surprising. It is a little heartwarming to realize that the institutional investors sort of just ignored S&P. They realized that despite a plethora of thorough research, the US can always just print more money. Everything is tied to treasuries. The first thing you learn in FIN101 is that the US Treasury is the risk-free rate. S&P wanted to see what happened if they poked the bear with the stick. As Branderson put it, they wanted to see if they could “turn risk-free return into return-free risk”. Well, that didn’t work. Instead what they did was send an already nervous market into a steeper nose-dive. Europe just bailed-out a massive lump of fiscal mess that was Greece (presumably thanks to certain US banks back in ’00), and is now crossing it’s fingers it doesn’t have to pay more child support before the next paycheck comes. Thanks S&P.

If you really want to blame someone, blame Sarah Palin. I didn’t hear one word about “Tea-Partiers” until she traded her political future for what is essentially Flava Flav’s job: reality shows, showing up on other networks completely confused, and yelling unintelligible things into cameras.

The silver lining of today was that I got to watch it unfold. I had no personal vested interest in the matter due to a misplacement of some forms.  I work for a company that provides risk management solutions to the buy side – that is anyone with GOBS of cash that they need invested prudently. Success in my line of business is probably highly correlated with the VIXX. As long as the government keeps doing whatever it’s doing, the likelihood that the US will probably require some stricter bookkeeping legislation increases. That means more clients.

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