Well they finally did it.. so now what?

[Fidoohki]

So they downgraded the US... now what?

http://finance.yahoo.com/...t-apf-821085521.html?x=0

[robkelk]

Now, the US federal government's cost of borrowing goes up. That's definite.

That means either the deficit gets larger faster, or something else gets cut to make up the difference. I find the latter to be highly unlikely, so let's assume the Feds go into debt faster. That means the US dollar is going to lose even more purchasing power in world markets.

(Must remember to get my financial advisor to pull my money out of any US-dollar funds I might still be in...)
--
Rob Kelk
"Governments have no right to question the loyalty of those who oppose
them. Adversaries remain citizens of the same state, common subjects of
the same sovereign, servants of the same law."

- Michael Ignatieff, addressing Stanford University in 2012

[Shay Guy]

Looks to me like bond interest rates are still dropping.

Do people still care what the rating agencies think? I'm not sure how much credibility they have after 2008; most of the worrying seems based on the assumption that other people will think they're credible.

---

Pronounced "shy guy."