Fitch Ratings, a leading provider of credit ratings for global capital markets, downgraded the U.S. Government’s credit rating just two weeks ago. Senior politicians rushed to the media to brush off the loss of the top-notch AAA credit rating for the largest capital market in the world.

They seem to have done a good job of sweeping this news under the rug because I haven’t heard too much about it since either. Maybe it’s nothing, or maybe it’s the beginning of another bad-borrower cycle?

Ever have a buddy who used to borrow money off you and say “c’mon, you know I’m good for it. I’ll pay you back like tomorrow”. I’ve been there, and gave the benefit of the doubt once or twice. Then, not long after, that person hopes you forget about the money owed, but you start seeing signs… like belongings being sold on Facebook and being ghosted so bad that you start thinking you’re Casper.

As a major lender to government, we have to hope they make good and clean up their balance sheet. Unlike my old buddies, I can’t simply repossess a government sofa or TV to square up.