Armstong states that last Thursday's 500 point equity rout was a result of S&P leaking the downgrade to insiders the day prior to the announcement.
Armstrong also believes that S&P has shot themselves in the foot with the preemptive unilateral decision, as Moody's and Fitch did not also downgrade the US.
Ultimately he believes the result will be an increase in taxes for Americans (as Tea Party repubs will not be able to fight Obama on the expiring Bush tax increases now) as well as S&P and the Tea Party repubs being blamed for the downgrade and subsequent fallout.
As always, Armstrong is a must read.
| Aug.6.2011 || S&P Downgrade |
Did They Shoot Themselves in the Foot?