Fitch Downgrades New Jersey Munis From AA To AA-

I believe we have a "good cop, back cop" scenario going on here.  Remember all the heat that S&P took for the U.S. debt downgrade (bad cop), while Fitch (good cop) decided to stay the course with its AAA rating.  Well, now Fitch downgrades the General Obligation (GO) Munis of New Jersey, while S&P has not changed its ratings of New Jersey.  If I was a conspirator, I would say that the rating agencies got together and decided who was going to be the good cop and bad cop in dealing with the U.S. debt.  Of course, S&P came up on the short end.  (LOL) As a matter of fact, I agree with both downgrades.  In fact, states are in a worse financial bind that the U.S. government.  The reason is simply that states can not print money, but the U.S. can through the Federal Reserve System.  By the way, look for a whole lot more muni downgrades, just not limited to Fitch, over the next two years.