Just a powder-puff followup from the good Dr. Krugman:
Downgrade DowngradedA week ago, before the S&P downgrade, the interest rate on US 10-year bonds was 2.56 percent. As I write this, it’s 2.24 percent, with the yield on inflation-protected bonds actually negative.
You would think this would amount to strong evidence that the downgrade totally failed to shake confidence in US debt.
The S&P comedy seems to be the denouement of the Laurel & Hardy debt limit charade. This dissembling has become seriously un-amusing for many Americans.