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Posts Tagged ‘credit rating’

AAA Credit but Junk Bond Politics

August 2nd, 2011

by

This piece was originally published in Politico.

What if there’s another recession? That’s still a threat, even if the debt deal passes. If the recession starts while Barack Obama is president, it would normally be called “the Obama recession.”

But maybe not this time. Because after the debt deal, The Republicans in Congress own this economy just as much as Obama does. They’re the ones who drove the deal — and if the economy goes into recession, they’ll bear a lot of the responsibility.

The deal initiates a new regime in American politics: The Scarlet A. We’re in for an era of Austerity. The huge spending cuts — half now, half five months from now — threaten to turn a fragile recovery into a double-dip recession. Read the rest of this entry »