As I have previously said .. the American economy is going to tank ... it will collapse & what will follow will be the greatest depression ... the last few days events are showing this ... met a man on friday who surprisingly knew what was going on ... he had invested in gold & silver ... like i have ... & he was planning on getting out of Vegas ... which is what i tell everyone ... get out of the city ... it is going to get ugly ...
NEW YORK (AP) -- Lawmakers weren't able to prevent the country from losing its coveted AAA debt rating.
Although the downgrade late Friday by Standard & Poor's was historic, it wasn't entirely unexpected. The three main credit agencies, which also include Moody's Investors Service and Fitch Ratings, had warned during the fight over the debt ceiling that if Congress did not cut spending far enough, the country faced a downgrade.
And just like a lower consumer credit score implies that a borrower is a less reliable, a lower credit rating for government bonds implies there is more risk involved in lending money to the government.
Prices for U.S. government debt rose in the first few hours of trading on Monday, a sign of increased demand despite the downgrade. But it is unclear what will happen in the long term, because of the unprecedented nature of the lower rating and the decisions by Moody's and Fitch to keep their highest ratings for now.
"If they all were saying exactly the same thing that would clearly have more impact than with a split rating," Alex Pollack, a fellow at the American Enterprise Institute in Washington.