Here’s Something to “Fitch” About

What would you do if you won the Mega Millions? It’s now up to a record $1.55 billion! We would start a not-for-profit to educate people not to play the lottery. Why? Your odds of winning are 1 in 302.6 million…you are 70 times more likely to die in a shark attack than win this lottery.

But it’s even worse than that because only 50% of the proceeds of ticket sales go into the prize pool. Half of your “investment” is gone the second you buy a ticket. The other half is gone when they do the drawing, unless lightning strikes, which is unfair to lightning because you are more likely to get hit by real lightning. In other words, it’s a total waste of money.

But people still play, and dream. We think about this because government sponsors this crazy lottery at the same time it shirks its own fiduciary responsibilities. Things have become so bad that last week, Fitch (a bond rating firm) downgraded US Treasury debt from AAA to AA+.

Fitch said they downgraded the US because of massive deficits, “fiscal deterioration” and “erosion of governance.” Obviously, this downgrade, like the one by Standard & Poor’s in 2011 created political heat. We hope it creates action.

Following the June 2, 2023 vote to suspend the debt ceiling for two years, the Treasury borrowed $1.1 trillion in just two months, pushing total debt from $31.5 trillion to $32.6 trillion.