S&P Downgrades U.S. Debt Rating

Exactly, the USA is nothing like Greece and this downgrade need not have happened at all. It's also fixable too if there is the political will to do so.

Its seemingly had some effect on the markets - http://www.telegraph.co.uk/finance/f...downgrade.html

Personally I thought It would mean nothing if anything I thought USD would rise as People don't see treasuries in any different way on Monday as they did on Friday (before downgrade). At the end of the day most investors still ultimately believe Govt. bonds are risk less and maybe there may even be more interest come Monday morning.

Anyway it seems the Saudi's reacted negatively so It would not surprise me if other world-wide markets followed suit (although I don't think the dow will fall 5.5% but could be red).

The Saudi market was closed on Thursday and Friday so perhaps it was just catching up?

As for the effect it will have I'm not sure, I think the large investors that move the markets are far smarter than the media and politicians and these investors know just how unreliable the rating agencies are. They were the same agencies that rated bonds tainted with subprime junk AAA.

My personal opinion is the USA's problems are mostly political and self inflicted.

Oh please, if you can't come up with something better than the lame stream medias manufactured position attempting to blame the Tea Party just quit posting...

That is as lame as it gets.. It's called Propaganda...if you don't recognize it, it was popularized in places like the former Soviet Union, China , N Korea, Cuba and is now fully embraced by the current U.S. administration.

I suppose you also believe the T/P's are all terrorist, wait let me go ask my grandmother what terrorist cells she currently belongs to...

Well, they didn't downgrade US to Greece's rating which is CC or CCC. And actually I support this decision. I see it as a game between rating agencies and white house and I'm on S&P side this time.

Well, because S&P said so. Their inability to compromise on issue relating to increasing revenue and using the hardline approach to stall the debate. They were basically playing chicken with the president to see who blinked first. They thought that he would cave and agree to their approach if he wanted the US to avoid the default
An excerpt from the S&P response:

“The majority of Republicans in Congress continue to resist any measure that would raise revenues”

The Washington Post confirmed it in this article Washington Post.

While not the only reason after all we do have an increasing debt limit it was a contributory factor.

Aside from the above, since china is holding the majority of our debt, anyone see China coming as the new reserve currency? Seems to me that the longer we are hemorrhaging eventually we will be supplanted by the need for stability in the world markets.

Terrorists? Not at all... Tell me, is your Tea Party Grandmother a wealthy woman?

No doubt there will be a gap upon open.

The gap up tonight should be brutal.