Downgraded

 

So now S&P has downgraded US government bonds from AAA to AA+.  The result is that people are stampeding to buy them.

Perhaps they remember that it was the ratings agencies who gave AAA ratings to sub-prime loans, and S&P who rated Ireland’s debt AAA until April Fool’s Day, 2009, and Spain as AAA until January 2009.  Maybe they remember how S&P rated Iceland’s debt at AA+.

Or perhaps they noticed that S&P made a 2 trillion dollar error in their calculations. (Two trillion is the cost of two Iraq wars, for those of you still counting.)

Anyway, there’s a pretty good case for betting against S&P, and lots of savvy investors are doing exactly that.