Downgrade?

If you or I saw our credit rating lowered we'd be paying higher interest rates.  We'd have trouble getting credit.  So what happens on the first day of trading after S&P downgrades US debt?  Interest rates on the debt have actually fallen and the value of the dollar is up about 2 cents.  

Crazy?  Not really.  

As bad as things may be for the US, they are much worse in Europe.  The US has a Tea Party inspired political problem.  Europe has dysfunctional economic system hangover for which there is no clear solution.

The bottom line:  As much the tea baggers did a good job of showing the world they could bring the US government to its knees, the very real problems in Europe trump the theatrical sideshow.