While the world waited for a defense of America’s credit worthiness, the president unfortunately chose to quote a businessman who may be flirting with a credit downgrade too.
During his Presidential remarks the president quoted billionaire Warren Buffett about the quality of America’s credit rating. Buffett said if the United States deserves a AAAA rating if such a rating exited. On Friday Standards and Poor’s downgraded U.S. sovereign debt from AAA to AA+.
Bad decision on the president’s part.
This morning Standards and Poor’s issued a “negative” rating for Buffett’s Berkshire Hathaway company. The rating agency has downgraded some insurance companies from AAA to AA+. Buffet’s company holds deep positions in those firms. A credit downgrade is expected to follow the S&P’s negative rating.