It had slipped my attention that the state of Minnesota was downgraded from AAA to AA+ by Moody’s last month. So it was somewhat surprising to find out that the financial outlook for Minnesota was revised to negative on Monday. This is not a good thing when looking for bonding in the future.
Strange how my state has become something of a predictor for political problems lately. What’s clear is that the public’s love of having divided government doesn’t work so well during a time of economic crisis. Big governments are slow to react to anything and divided governments are even worse.
So we are seeing that stop gap measures aren’t effective in keeping good credit ratings, which should be a warning sign to the Federal government. There is a very high chance that there will be a downgrade there as well.
I should see how the stock markets are taking things now that the debt ceiling raise was signed by President Obama…
Well, the Dow has plunged below the 12,000 mark and the S&P has shed most of its gains for the year. Not surprising since there is no good economic news to be had. Gold just went higher with South Korea buying more, it is at $1644.50 an ounce. That’s absurdly high and a huge warning sign.
Interesting times.
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