Quote:
Originally Posted by Slava
Well that is all well and good except for a few things: (A) a credit rating is not really a comment on the political climate. Its supposed to be a rating on the likelihood that you can pay your debts. (B) and perhaps most importantly, the US can always print more money. In other words taking the hyper-inflation aspect out of the equation (which is not a concern in the least right now!) its virtually impossible for the US to actually default. They theoretically ought to be either "AAA" or "D" in theory because if they were that close to a default they could turn on the presses...
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When you talking about an entity like the US, it's not just whether the country can pay it's debts, it's also whether it is willing to. It's not like you can repo the White House if they don't.
Quote:
Originally Posted by Flash Walken
The whole point is that the banks and lenders were telling people they COULD.
"I don't know if we can afford this."
"But it's ZERO down. You can absolutely afford it."
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That ScotiaBank kept "You're richer than you think" as their slogan after the whole subprime mortgage thing came to light still makes me laugh.