USA Losses AAA rating for the 1st Time in History

@2wicelot (2945)
August 6, 2011 7:08pm CST
A standards agency downgraded USA credit rating. It is the first time in history that it has happened; after all the wrangling about raising the debt ceiling. It basically means the US is not the safest place to invest or something like that. Should we be worried?
2 people like this
5 responses
Stephannie
@stephcjh (38473)
• United States
7 Aug 11
Yes. We have every right to be worried now. The U.S. will never come out fo the debt we are in. They are not doing enough about the situation to make any difference. They just keep spending no matter what they say they are cutting.
2 people like this
2wicelot
@2wicelot (2945)
•
8 Aug 11
It seems there is no attempt to come out of debt; not even much effort is put to try to reduce the debt. I guess they are contented with just borrowing and spending.
bostonphil
@bostonphil (4459)
• United States
7 Aug 11
I do not know what to expect. I do not think anyone else does either. All eyes are on the Asian Markets which will open tomorrow, Sunday. And then on Monday, the European Markets will open ahead of The American ones. Obviously, time is going to tell what the consequences are. Maybe nothing: maybe something. Who do you think is responsible for the problems?
1 person likes this
lidia123
@lidia123 (41)
• India
7 Aug 11
on one side it indicates the efficacy of our economic system while on other it spells out doom. One one side it upholds the principle of justice while on other it inspires pessimism.
1 person likes this
2wicelot
@2wicelot (2945)
•
7 Aug 11
I hope the effects are minimal. Hope the governments step in to prevent further damage.
bostonphil
@bostonphil (4459)
• United States
7 Aug 11
I just got an email from CNBC. They are having a special program about the downgrade and what can we expect for the week ahead. The program is tonight at 8 pm Eastern Time. This is probably only good if you are in The United States and have cable TV. However, you might also check on computer at CNBC.com
1 person likes this
ram_cv
@ram_cv (16513)
• India
7 Aug 11
Yes, this is really big news. US has been downgraded from AAA to AA+ rating now. Already stock exchanges that have opened since that announcement including the Dubai Stock Exchange have opened at a major discount. It would really be interesting to see the reaction of the rest of the stock exchanges once they open on Monday morning. European countries like Germany and UK now have stolen a march over US. Cheers! Ram
1 person likes this
2wicelot
@2wicelot (2945)
•
7 Aug 11
I somehow feel sorry for Obama because he is the first for many things and now the first president to have the credit rating downgraded on his watch. Hopefully governments would step in to avert further damage.
1 person likes this
bostonphil
@bostonphil (4459)
• United States
7 Aug 11
I feel sorry for Obama, also. I believe he is a good person who is trying to be a good president but lacks the experience at this time. I think that Hillary would have done a better job but who knows. Stock Exchanges all over the world will be opening soon. It is going to be an interesting Monday morning.
2 people like this
2wicelot
@2wicelot (2945)
•
8 Aug 11
Hilary may have handled it different. But would there have been a better outcome? I don't know.
1 person likes this
lampar
@lampar (7584)
• United States
8 Aug 11
If you are an avid bond investor looking for the safest government treasury debt instrument to buy in the world, or elected official from U.S, then you may well worry about it. The downgrading will means you may need to pay higher interests to entice other to purchase your debt instrument now in order to borrow money, your nation's treasury bill and bond are no more very credit trustworthy like before. If you are holding large amount of U.S governemnt bond and treasury bill, you may lose some value in your investment portfolio after the downgrade. I am sure this downgrade will make some high level U.S government officials angry and vent anger at the rating agency regardless the action is justified or not. The lawmakers need to get their act together on stopping ever rising national debt issue sooner rather than later. You can't really blame the rating agency after witnessing all these fiscal messes created by those in the Capitol Hill due to highly professional money management skill.
1 person likes this
2wicelot
@2wicelot (2945)
•
8 Aug 11
It is bad news for the investors. The government I think need to be more assertive so as to get fix the mess. I am not sure who needs to lead that, the president or congress.
cynthiann
@cynthiann (18602)
• Jamaica
7 Aug 11
It is the whole world that is in financial problems not just the USA! And yes, the whole world is worried with the possible exception of China and Australia. The world is in a mess. Your country is doing better than others and I really hope it will continue to do so. My country is down the shute
1 person likes this
2wicelot
@2wicelot (2945)
•
7 Aug 11
The whole world is in some sort of economic trouble. I guess it may be worse in some countries than others but I believe all countries have some sort of economic problems.