enrageorange on 09 August 2011
| HappySqurriel said: The United States federal government is like a household that earns $60,000 per year, while spending $90,000 per year, and has a net debt of $300,000 ... Regardless of the projections of where they will be a decade from now, the United States federal government's bonds are not a AAA investment; and I would argue AA+ is an optimistically high rating. |
useless comparision. We can argue all day about the state of the economy, debt, etc. but the S&P is suppose to rate governments based on their likelyhood of paying off the interest on their debt in the near future, and there is a 100% chance the USA will do so which investors see despite the absurd S&P downgrade as they have been swarming towards buying US bonds despite the downgrade when the stock market sharply fell the past few days.
