Monday, August 08, 2011

Downgrade blame

"Analysts worded all these reports as if the S&P downgrade was to blame or partially to blame. The facts of the matter are these.

1. The global economy is slowing
2. European debt crisis has escalated
3. A global currency war is underway
4. The US is headed for recession if not in recession now
5. Europe is already in a recession in my estimation

The downgrade itself is not the problem. Rather the S&P downgrade (long overdue) is one of many symptom of a much larger global financial crisis. Nonetheless, expect many demagogues to make S&P the scapegoat if the decline escalates this week."

S&P Downgrade Did Not Cause This - Mish

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