The S&P downgrade is a salutary event. It spotlights the problems with US government finances. This is all to the good. In the midst of the downdraft today, President Obama gave a brief statement that exhibited a total lack of understanding of US debt problems. The stock market followed the Obama comments with an almost immediate drop of another 200 points. Overall the markets lost nearly seven percent by the time the smoke had cleared.
But most folks get it, even if the President doesn't.
No longer can politicians pretend that the debt issue can be swept under the rug or buried in a sea of class warfare.
It must be time to buy stocks again.
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