...America

Rocks. Unless you have been living under one for the past 28 hours then you already know that America's credit rating has been dropped by Standard & Poor's from AAA to AA+ for the 1st time in U.S. history. Though no one knows what this means for sure for America's short term future, because the markets have yet to dictate that, so far I have heard nothing too good. I find it horrible that we must wait for the markets around the world and here in NYC to dictate the nation's future. I understand how it works, 75% anyway, and I do not like it. Most say that eventually this will impact all of us who need to take out a loan for a home, car, business, etc. In normal times, in another country, a downgrade in a country's sovereign debt rating probably would force its government to pay higher interest rates to convince investors to keep buying its debt. Standard & Poor's reasoning for doing this is because they feel that the bill that was passed by congress to cut $2 trillion worth of spending over 10 years is not enough. They were looking for a minimum of $4 trillion, and they warned the government about that. Also they feel as if the political climate in D.C. is too unstable to be a safe enough bet right now. Still U.S. debt is special. Treasury debt is considered the safest investment in the world. Even after the downgrade. Investors don't doubt the U.S. government's ability to repay the $9.8 trillion it owes. So what does China think? Well they said, "The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone." Other nations are also concerned about what this will mean for their economic situations as well. There will most likely be a special meeting among the G8 nations to talk about how to fix this issue. Honestly there is nothing that can be done int he near future. There needs to be massive cuts across the board and people will just have to be pissed off about it. New leaders will need to be selected to run certain departments in our nation before it is too late, though the S&P has already warned that we can be further downgraded in6-24 months. The "bright side" of this is that they are the only agency to downgrade us and they also gave AAA ratings to a lot of home loan agencies, and we all saw what that did to the economy. Still things need to change. Politics need to be put aside and major moves nee to be made. I doubt this will happen so I plan on converting all of my assets into cash, because eventually even gold will fall. And if you are wondering, it takes about 9-18 years for most countries to regain a AAA rating after dropping to an AA+ rating, and it has only happened 4 times. I am giving America 2 Digits Down for letting things get this bad.