Weiss Ratings, an independent rating agency of U.S. financial institutions and sovereign debts, has downgraded the debt of the United States government from C to C-minus.
The C-minus rating for the U.S. reflects a continued deterioration U.S. debt according to Weiss,as a result off heavy debt burdens, shaky international stability, and poor economic health.
Weiss Ratings senior financial analyst Gavin Magor commented: “Our downgrade today is not contingent on the outcome of the debt ceiling debate in Washington. It is driven exclusively by the numbers, which indicate that, in addition to a decline in the long-standing weaknesses we noted three months ago, the U.S. has already lost the golden halo that helped guarantee liquidity and acceptance of its government securities in global markets.”
Bottom line: Expect higher interest rates, and Bernanke money printing to help support Treasury securities. This is no time to own long-term bonds.
I'm curious as to how long Weiss Ratings has rated US debt @ "C"....
ReplyDeleteAt least it's still better than Moody's/Standard & Poor's notion that the debt deserves their best ratings....
America is definitely in trouble. $14 trillion in debt is horrendous. We are quickly approaching the debt wall and Congress does not realize that. Raising the debt ceiling is not going to help.
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