This morning Paul Krugman wrote a very good op-ed about the S&P downgrading of France’s debt and how it’s wrong. What makes it wrong is that S&P did the downgrade for political reasons instead of fiscal. France is not following the current austerity methods of the rest of the world and has decided to increase taxes to the wealthy. France is still in good financial shape , but because it has decided to raise taxes S&P believes they are not in good ¬†standing. Honestly, it’s complete bull because its S&P overreaching its “authority.” The company is supposed to judge finances not policy. I find it hard to believe most of these ratings agencies because they are the ones who gave good rankings to many of the bad investments that caused the global financial crisis. Think about it. Also, haven’t we learned that austerity they want doesn’t work?

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