Standard & Poor's made a tiny $2 trillion mistake when rating the US economy

[NJ5]

kowenicki said:

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.

ratings are relative.

Yes and that is why the US does not deserve an AAA rating. Just compare it to countries like Sweden or Australia, they actually deserve the AAA rating due to lower debt and deficits.

The US does not have any sign of having the political will or public trust to cut its deficit, and the fact that the economy is bad right now makes those fixes even harder to put in front of the population.