Econo-Quake, Pt I:

The first Econo-Quake didn't stem from not passing any form of debt ceiling increase; oh no. It stemmed from the debt ceiling actually being finally extended after having passed both houses on Tuesday, August 2nd. Go here to see. The market plunged down 266 points in one day. The opposite of what was prognosticated and promised by the Demorats. The seventh straight day of losses.

That slide, in one day, eradicates all the gains made since the entire beginning of 2011.

Still and all, ratings houses are weighing in -- Standard & Poor's, and Moody's.

Moody's says:

Moody’s Investors Service said the U.S. credit rating may be downgraded for the first time on concern that fiscal discipline may ease, further debt reduction measures won’t be adopted and the economy may weaken.

The U.S., rated AAA since 1917, was placed on negative outlook, New York-based Moody’s said in a statement today as it confirmed the rating. Moody’s warned on July 29 a negative outlook was “more likely” as lawmakers reduced the size of spending cuts being negotiated to win approval on a plan to lift the nation’s borrowing limit.

A ratings cut would raise the specter that the wrangling between President Barack Obama and Republican lawmakers over spending cuts and taxes will harm American prestige and the global financial system. JPMorgan Chase & Co. estimated that a downgrade would raise the nation’s borrowing costs by $100 billion a year. It could also hurt the rest of the U.S. economy by increasing the cost of mortgages, auto loans and other types of lending tied to the interest rates paid on Treasuries.

“A downgrade is a sign that Congress is failing to address a real fiscal issue,” Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, said in an interview before the announcement.

Moody’s Investors Service put the U.S. under review for a downgrade on July 13 for the first time since 1996.

Further:

Standard & Poor’s put the U.S. government on notice on April 18 that it risks losing its AAA rating unless lawmakers agree on a plan by 2013 to reduce budget deficits and the national debt. Fitch Ratings said today the U.S. is under a review as the nation’s debt burden increases at a pace that isn’t consistent with an AAA sovereign credit rating.

Let's review:

In a recession bordering on an actual depression, with unemployment rates exceeding 30% in some areas, with housing sales stagnant, with the economy growing at .03%, with no hiring occurring, with no durable goods sales occurring, with jobs cut throughout the nation, with smaller government agencies cutting emergency response jobs across the states, with TARP having not helped, with the Porkulus Packages having not helped, with Cash For Clunkers a complete flop, with ObakaKare guaranteeing tax increases for all come 2013 (And people having conveniently, forgotten this fact!), people are shocked that Elder DC Hacks (on both sides of the aisle) voted for a literal piece of shit bill?

And with claimed stress and heartache and hate and discontent and then -- zounds -- victory?

I'm not surprised. It's all about "they've got theirs" and you can go to Hell.

At the end of each day they all tipped drinks at the Hawk 'n Dove. Back slapping all around.

As I wrote on April 6th of this year:

Whilst some Republicans manage to excoriate the TEA Party, it is the TEA Party's philosophy that can save this nation now, not backslapping by both sides over drinks and larfs at Bullfeathers, Hawk N' Dove or the Capitol Lounge. Because they know: you are being fleeced.

And you are being fleeced.

BZ