Economist Dean Baker notes:The good news is that the crisis will be ended. The bad news is that it means the shackles will be put on the bottom 90% to make sure they cough up the missing money through loss of government services, more taxes, or both.Wall Street will suffer more than anyone from a default and it will not let it happen. The public should know this, certainly Wall Street does.No wonder the fatcats running the giant banks which received tens of trillions in bailouts, loans and guarantees from the American public are screaming loudly that the debt ceiling must be raised.
Robert Reich points out:Why has Standard & Poor's decided now's the time to crack down on the federal budget -- when it gave free passes to Wall Street's risky securities and George W. Bush's giant tax cuts for the wealthy, thereby contributing to the very crisis its now demanding be addressed?Remember, the big 3 government-sponsored rating agencies routinely took bribes as their normal business model, committed massive fraud which greatly contributed to the financial crisis, covered up improper ratings after the fact, and otherwise sold their soul (in their own words). And see this and this.
Could it have anything to do with the fact that the Street pays Standard & Poor's bills?
Some complain about the poor sucking on the government teat.
But the fact that Wall Street controls the rating agencies, and the rating agencies are now creating an artificial emergency sounds like the powers-that-be - the giant banks which run this country - are trying to protect their government teat of perpetual bailouts from the public coffers.
And of course, they are the ones calling for slashing of spending which helps the public.
This is great news because it can get the distraction of the "debt crisis" off the table so that American politics can get back to the really serious business of government: finding new ways to cut taxes for the rich, uh... make that the "job creators, who deserve relief in these oppressive economic times.