Friday, August 5, 2011

What They Told Us About the Debt Bill Wasn't True

They told us if a deal wasn't made to raise the debt ceiling, the financial markets would be in turmoil. In that case, it might produce a day on the stock market like this — a drop of more than 512 points in a single day — the worst day since the financial crisis started with the bursting of the housing bubble (and FNMA and FMCC) in 2008.

Oh, wait. . . . Congress did pass a debt ceiling deal. On Tuesday. And that stock market graph is what we got on Thursday. (Wednesday was bad, too — just not quite as bad as Thursday.) They told us this wouldn't happen if that bill was passed. They were wrong, and what we got was this.

They told us passing a debt ceiling bill ceiling bill would keep this from happening, too. But, of course, the real threat to the U.S. government credit rating, then as now, was the fact that our government's debt was approaching — and now has passed — our government's annual income. And that's because our spending is completely out of control. So they misled us on this, too.

Or maybe it's just that they don't have any idea what they're doing.

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