Tags: balls, Bill Gross, downgrades, hat tips, PIMCO, spine, Standard & Poor's, Tim Geithner, Warren Buffett
As you may have heard, Standard and Poor’s knocked the US’s debt down to double-A plus from triple-A Friday evening. Several hours before it was made official, the ratings agency was notified their team had made some calculation errors but chose to say “fuck it, on with the downgrade.” This made a whole bunch of people very upset, including Treasury Secretary Tim Geithner, who commented S&P demonstrated “really terrible judgement, handled themselves poorly, showed a stunning lack of knowledge about basic US fiscal budget math, and…came to exactly the wrong conclusion” and Warren Buffett, who shared that he could not give less of a rat’s ass what S&P thinks, that he’s “not changing his mind about Treasurys based on the downgrade,” that “if anything, it may change my opinion on S&P,” and that the United States’s debt is like that of the first buxon milkmaid he laid his eyes on 70 years ago today- her tits may be down on the ground now but they’ll always be triple-A rated in his mind and that’s all that matters.
A slightly different reaction came from PIMCO CEO Bill Gross. He loved the downgrade and if we’re being really honest? It earned S&P some respect in his eyes, ’cause it showed the ratings agency has balls.
“I have been criticizing them and Moody’s and Fitch for a long time. Moody’s and Fitch are on the “S” list. I think S&P finally demonstrated some spin. S&P finally got it right. They spoke to a dysfunctional political system and deficits as far as the eye can see. They are enforcing some discipline. My hat is off to them. “
Oh god, does anything top the thrill of being a total prick just because you can? Now you guys finally know what it felt like to leave that waitress a negative tip for not being quick about the refills. Conga line in all your honor today at lunch.
PIMCO’s Bill Gross speaks to Tom Keene on U.S. credit downgrade [BloombergTV]