The debt limit. The US credit crisis. Point one: The credit ratings organizations are owned by big business. They do not report the truth, they report statistics, and anyone who works with statistics knows: they can mean anything based on the questions you ask and the information you look for. So what the credit reporting agencies are doing is telling the congress and the world what their owners want them to hear, not the whole truth. And not the companies that produce jobs or employ people, rather, it’s the people who trade in economic abstractions – banks with interest rates and the stock market with stocks and bonds that are worried. Places where money is a one and zero in a computer. For instance: if a bank is too big too fail, based on its effect on the economy, imagine how much how little that bank wants the largest economy in the world to have it’s credit down graded. Lots of lost ones and zeros in that equation. Point two: if we bailed out the banks, how fast long do you think before the bankers arrive, on their silk clad knees, begging the US to take their money so we don’t default. That moment, in world black-plague-Spanish-flu-nuclear-winter level suffering, might be worth the whole thing.
If you’re into that sort of rough trade.
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