[gregm]

Atlantic had a good article on reactions to the credit downgrade.

Warren Buffett said the US downgrade doesnt make sense.

I don't get it," Buffett told FBN late Friday night. In fact, Buffett reaffirmed his belief in the quality of the United States' credit telling FBN, "In Omaha, the U.S. is still triple A. In fact, if there were a quadruple-A rating, I'd give the U.S. that.

The downgrade should have little effect on the stock market Monday, Buffett said.

"If nothing else takes place, meaning, if all other variables hold and there isn't say, a new problem in Europe, it won't make any difference."

"Think about it," Buffett said. "The U.S., to my knowledge owes no money in currency other than the U.S. dollar, which it can print at will. Now if you're talking about inflation, that's a different question."

Asked if he believed the U.S. deserved the downgrade, Buffett said, "No … remember, this is the same group that downgraded Berkshire.

Paul Krugman wrote in a Times editorial that "everything I’ve heard about S&P’s demands suggests that it’s talking nonsense about the U.S. fiscal situation." http://krugman.blogs.nytimes.com/201...man&seid=auto# He added:

In short, S&P is just making stuff up — and after the mortgage debacle, they really don’t have that right. So this is an outrage — not because America is A-OK, but because these people are in no position to pass judgment.

Robert Reich, professor of Public Policy at Berkeley and former Secretary of Labor under Clinton said that S&P "has no business downgrading the U.S." http://robertreich.org/post/8542550924

Pardon me for asking, but who gave Standard & Poor’s the authority to tell America how much debt it has to shed, and how?... S&P’s intrusion into American politics is also ironic because, as I pointed out recently, much of our current debt is directly or indirectly due to S&P’s failures...

I realize this players talk so Snoop Dogg twitted

"US Economy downgraded #getyomoneyright"

[InTheDrink]