Thoughts on Recent Events: Debt, the Economy and the Markets
This past Friday, Standard & Poor’s reduced the United States debt rating one notch from AAA to AA+. Meanwhile, the European Union is struggling to support troubled nations, such as Greece, from defaulting on their debts. In both cases, politicians are failing to make the tough but necessary decisions for the long-term financial health of the countries they represent. However, these near term fears and political shortcomings do not fully reflect the very long-term dynamics of a country’s financial health.