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S&P’s $2 Trillion Mistake

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The funniest reaction to S&P downgrading the US credit rating came from the most likely of sources — the Treasury Department.

In a document provided to Treasury on Friday afternoon, Standard and Poor’s (S&P) presented a judgment about the credit rating of the U.S. that was based on a $2 trillion mistake. After Treasury pointed out this error – a basic math error of significant consequence – S&P still chose to proceed with their flawed judgment by simply changing their principal rationale for their credit rating decision from an economic one to a political one.

Flawed judgment, alright. How about the US Government being $14 trillion in the red, and not having a clue how to dig their way out this abyss? What flawed judgment led the country into this mess?

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