notes how they are wrong and reckless again: There was no need for S&P to rush to judgment just days after a bruising political battle had secured a bipartisan agreement to raise the debt ceiling through the next election cycle and which initiated a process to begin to cut spending and address the nation’s long-term fiscal imbalances. Neither Fitch nor Moody’s saw any need to do so, indeed, Moody’s indicated that it saw the agreement as “a turning point in fiscal policy” and declared that a downgrade would be “premature”. The market says S&P is wrong. The US enjoys among the lowest interest rates in its history coincident with the highest deficits and a daunting long-term fiscal outlook. Yet when investors are looking for safe assets, they buy Treasuries. The US is borrowing at lower long-term rates than it did when it was running a budget surplus. In the 2008 crisis, investors flocked to Treasuries and the dollar because they sought the safest, most creditworthy assets in the world. S&P seems not to have noticed this. But Miller misses something important, I think.]]>