DeletedUser
Some of you may be aware of the latest stock market crash, but might not be altogether clear why it happened. It happened because credit rating agencies downgraded the U.S. credit rating from AAA to AA+ (in particular, Standard & Poor's). If you want to understand how bad this is, the U.S. had been AAA since 1917.
And the reason it was downgraded? Because the credit agencies indicated they would do so if the House did not cut enough off the government's spending in their debt ceiling bill. In answer to this threat, the Republican representatives, led by John A. Boehner (R - OH), literally snubbed Standard & Poor's and other agencies, keeping tax cuts for the wealthy and making paltry cuts altogether, most of which would pose financial hardship for the U.S. in the long run due to insufficient cuts (particularly in the defense budget, where an ample stock of the budget is fluid).
So, the downgrade caused a panic, which resulted in an across-the-board plunge in ALL the markets (U.S., Asia, Europe, etc) over the last few days that took 9 months to attain. I can't say it's unprecedented, but it is damn significant.
And the reason it was downgraded? Because the credit agencies indicated they would do so if the House did not cut enough off the government's spending in their debt ceiling bill. In answer to this threat, the Republican representatives, led by John A. Boehner (R - OH), literally snubbed Standard & Poor's and other agencies, keeping tax cuts for the wealthy and making paltry cuts altogether, most of which would pose financial hardship for the U.S. in the long run due to insufficient cuts (particularly in the defense budget, where an ample stock of the budget is fluid).
So, the downgrade caused a panic, which resulted in an across-the-board plunge in ALL the markets (U.S., Asia, Europe, etc) over the last few days that took 9 months to attain. I can't say it's unprecedented, but it is damn significant.
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