The senate passed the deal to raise the debt ceiling today, which means the United States can pay their bills and not default. But truthfully, that’s probably the worse thing that could have happened, since the US has delayed dealing with some very hard problems. First, let me comment on the ratings agencies. Right after a deal was announced, two of the three major rating agencies reaffirmed the United State’s AAA credit rating. These are the same ratings agencies that also gave AAA ratings to the credit default swaps and other securities that were the underpinnings for the 2007-2008 financial crisis. Saying the United States is in good fiscal shape is like saying Icarus was the world’s best astronaut. S&P […]