Sunday, June 26, 2011

Why does the GOP Tea Party Hate America?

The Financial Times:
“If Standard & Poor’s or any of the other major rating agencies downgrade the US, Treasuries would likely drop in value, possibly by as much as $100bn,” said analysts at S&P Valuation and Risk Strategies, a research team separate from the agency.
And what might cause such a catastrophic drop in credit rating? Why, continued brinksmanship over the debt ceiling of course!
While the threat of a US downgrade is remote, it remains a possibility given the projections of large long-term deficits and the impasse over raising the $14,300bn Treasury debt ceiling.

A ratings downgrade applied across all Treasury maturities could raise the cost of financing an annual budget deficit of $1,000bn by an additional $20bn.

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