Debbie Double A Downer: S&P Downgrades US Credit Rating
All that time spent not working to create jobs, freaking the world markets out, putting ice on the economy, and S&P downgrades the US credit rating -despite having made a TWO TRILLION DOLLAR miscalculation in their analysis-. In fact, S&P in no uncertain terms stated that a large part of their reason for downgrading the US had to do with irresponsible members of Congress threatening to force us into outright default. Somehow, that just wasn't S&P's cup of tea. Go figure.
The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy … [This] weakens the government’s ability to manage public finances …
CNBC
The $2 Trillion Error, Urgent Meetings & Then a Downgrade
Told they had a $2 trillion error in their calculation of US deficits over a 10-year period, Standard and Poor’s scrambled in the afternoon Friday to reconsider its historic decision to downgrade the United States government. Sources familiar with the situation say S&P had to rouse several of its European committee members from bed to hold an emergency conference call as markets headed toward their close in the US...
Market Now Has to Sort Through Once Unthinkable Event
Markets in the coming week will digest the once unthinkable - the downgrade of the United States gold standard AAA rating - and the impact it will have on other credit ratings and investor confidence...
China Economists See Big Risks From US Downgrade
Chinese economists said the U.S. credit rating downgrade by Standard & Poor's poses great risk to financial markets and expect it to prompt China, the world's biggest holder of U.S. Treasuries, to accelerate the diversification of its holdings...
Bloomberg
Nouriel Roubini's & Christina Romer's takes (VIDEO)