"While this credit crunch has hurt financial markets, S&P notes that it hasn't threatened the standing of the nation's credit quality upon which U.S. Treasurys and debt priced off this government debt depend. But should a protracted recession cause Fannie and Freddie to buckle, the U.S. rating would be in danger." by PRABHA NATARAJAN from Wall Street Journal.
Meaning U.S. might no longer have a AAA rating if things turn out bad with this financial crisis?
The implications are that higher taxes, higher inflation is the future. Is this reason for the dollar's weakness?
Anyone care to comment on this? Is this not a big deal???
btw, here is a link SSRN-Determinants and Impact of Sovereign Credit Ratings by Richard Cantor, Frank Packer
which I found gives a good idea of how rating agencies like moodys and s&p rate sovereign debt.
Meaning U.S. might no longer have a AAA rating if things turn out bad with this financial crisis?
The implications are that higher taxes, higher inflation is the future. Is this reason for the dollar's weakness?
Anyone care to comment on this? Is this not a big deal???
btw, here is a link SSRN-Determinants and Impact of Sovereign Credit Ratings by Richard Cantor, Frank Packer
which I found gives a good idea of how rating agencies like moodys and s&p rate sovereign debt.