Here is the latest conversation I had with money manager Andrew Horowitz…. new insights for anyone who invests in anything. This week the market perks up as the oil spills.
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California needs to take advantage of the oil spill by promoting tourism…clean beaches, etc…
Nevertheless, the macroeconomic and implementation risks associated with the program are substantial and more consistent with a Ba1 rating.
To be honest I’d give the EU as a whole a fairly low rating and all of their long term bonds would be junk bonds. When everybody is spending more than they take in and nobody has a balanced budget the long term prospects of getting your money back stink.
I would give NY and CL fairly low ratings.
I’d knock done the rating of the US government by at least one level on long term bonds. I’d tell people a twenty year bond from Uncle Sam was a junk bond.
#3 Considering the trend of actual buying power of the USD over the last 50 years, 20 year US bonds should have had a Junk rating long ago…
I tend to agree with Dvorak, that Palin is paying money to BP to purposely keep busy doing token weak fixes to the oil gusher. Obama’s chances will thus be tilted against him in November 2012 just enough, by not being able to stop the oil gusher during his term.
Palin’s election will thus be the 2nd thrown presidential election in US history, after Reagan’s.
Watch for BP to find the solution to the gusher on January 12 2013, the day of swearing in of President Palin, too late for the election to be a do-over.