AAA Rating Needs AAA Towing

Posted by LK on 2/25/08 • Categorized as The Economy and Markets

If it wasn’t already clear, it is now. We’re not in a free market economy. The behind the scenes manipulation that had to take place to keep AAA credit ratings for companies involved in the sub-prime multi-vehicle high speed crash is shamefully obvious. The net result may include a little less short term pain, but among other long term results, the unquestionable knowledge that the entire financial system can be fixed like a low rent undercard will undermine any small remaining bit of trust that even the most gullible economist or citizen might have in said system.

Stay tuned over the next decade as China slowly liquidates its dollars (Chinese dollar torture if you will) and the Sovereign Wealth Funds buy up a good chunk of your backyard, and then move on to your home proper.

Oh, and get a wheelbarrow instead of a wallet to transport cash to the grocery store.