Entries Tagged as 'Rating Agencies'

The S&P Bond Rally

David Frum August 9th, 2011 at 9:18 am 42 Comments

In a column for the National Post, I explain why the current price of government bonds repudiates the S&P downgrade of American debt:

If I were Standard & Poor’s, I’d be damn embarrassed. On Friday, the famous bond-rating services took the momentous step of downgrading the sovereign debt of the United States of America, a country that has paid interest on its loans punctually since 1789. All weekend, the world awaited market reaction. On Monday, the markets did react: with an explosive rally in US Treasury bills.

Now that’s a repudiation.

Click here to read more

S&P Was Right to Downgrade

August 8th, 2011 at 4:34 pm 26 Comments

The dispute between the Treasury Department and Standard and Poor’s over America’s sovereign bond rating is a tempest in a teapot.  Worse, it overshadows the reality about America’s debt: Congress cannot handle it politically and Americans will have difficultly handling it personally.

Click here to read more