credit rating

Enervating European Economic Eruptions

volcanoIt's a 4E. The never ending European Economic Mount Vesuvius has erupted again, threatening that final pyroclastic flow to the global economy. Friday the 13th has arrived and the horror show slasher is Standards and Poors. S&P doesn't like what Europe's leaders have done about the financial crisis.

To wit, S&P just downgraded the European bail out fund. The European Financial Stability Facility was just downgraded from AAA to AA+. This affects the EFSF's ability to raise cheap funds to help contain the financial crisis. S&P what are you thinkin'?

Last Friday France was downgraded from AAA to AA+ and given a negative outlook. Austria was spanked too and lost their AAA credit rating from S&P. One again Debbie Downer Standard and Poor's is on a credit ratings downgrade rampage.

Austria is now AA+. Italy was downgraded to BBB+. Portugal was downgraded to junk, BB. Spain gets an A and Cyprus I guess gets a beggin' cup at this point. Their S&P rating is now between junk and BB+.

The big picture downgrades from S&P's press release:

Saturday Reads Around The Internets - Credit Ratings, Crazies and Crisis

Welcome to the weekly roundup of great articles, facts and figures. These are the weekly finds that made our eyes pop. This week the fur is flying over the never ending economic absurdity spewing from our government representatives.


Did the GOP Play Math Hooky?

Scarecrow calls it on how the press doesn't even challenge outrageous economic fiction being spewed by politicians in did the GOP miss third grade math?

Compared to laying siege to government, hurting millions, and putting the economy at risk, it’s only a minor irritant, I suppose, one of the dozens of little misrepresentations that we are so used to hearing from the right wing that we just shrug our shoulders and wait for something new. But the fact the media almost never pushes back suggests that letting it slide is a mistake. And it’s just fractions!

Remember third grade math? Sure you do. It’s when you probably first learned fractions. Numerators! Denominators? Percentages! Pies! Well, it seems many right wingers skipped that year, because they can’t recall that a fraction has both a numerator and a denominator, so the size of the fraction depends on both.

So night after night, apparent third grade dropouts tell news anchors and talk show hosts, none of whom even sighs (sigh), that government spending has exploded under Socialist Obama. Before Obama, it was about 19 percent of GDP or 1/5th. But now its almost 1/4th, or 24 percent of GDP.

Tom Coburn said that on my public tv. Boehner and McConnell and Kyl say that. Every Tea-GOP and rightwinger has it tatooed on their foreheads, and Sarah Palin has is written on her palm. From 19 to 24 percent! Yikes!