S&P Downgrades U.S. AAA Credit Rating

The Standard & Poor’s downgrade of the U.S. credit rating from AAA to AA+ comes after one of the worst weeks for Wall St. in quite a while.

As the GOP has been aiming, but falling way short of deep and massive spending cuts, Wall St. seems to have taken a backseat approach. That is until this week when the Dow fell 500+ points. It seams that Wall St. finally got sick of the destructive path Obama has put the nation on, and that the S&P finally got the point across.

Now, this won’t be as catastrophic as everyone is trying to play it up as. This has happened to other countries, and they rallied back stronger than ever posting even higher gains.

Bloomberg

Standard & Poor’s downgraded the U.S.’s AAA credit rating for the first time, slamming the nation’s political process and criticizing lawmakers for failing to cut spending enough to reduce record budget deficits.

S&P lowered the U.S. one level to AA+ while keeping the outlook at “negative” as it becomes less confident Congress will end Bush-era tax cuts or tackle entitlements. The rating may be cut to AA within two years if spending reductions are lower than agreed to, interest rates rise or “new fiscal pressures” result in higher general government debt, the New York-based firm said yesterday.

The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics,” S&P said in a statement late yesterday after markets closed.

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