Tuesday, August 09, 2011

Fiduciary Trust Company on the Downgrade

Our view is that the downgrade does matter, but not for the reasons the headlines shout. It matters because the political choices before our leaders are now stark. The U.S. cannot continue to borrow $0.40 for every dollar it spends. We hold on to the view that politicians will place reality above ideology and work to devise policies that lead to a less-intrusive government, that promote growth policies guided by clear regulations, and that strengthen the U.S.' long-held comparative advantages in technology, finance, education, healthcare and industrial processes, among others. The markets and their constituents will no doubt help to focus this clarity.

-from Fiduciary Trust Company International's Perspective of 8/8/2011.

I hope the optimism is well-founded.

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