Friday, August 05, 2011

S&P Downgrades U.S. Credit Rating

Somebody noticed that the U.S. is a dysfunctional nation:

Credit rating agency Standard & Poor's on Friday downgraded the credit rating of the United States, stripping the world's largest economy of its prized AAA status. In its report Friday, S&P ruled that the U.S. fell short: "The downgrade reflects our opinion that the ... plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics."

S&P also cited dysfunctional policymaking in Washington as a factor in the downgrade. "The effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges."

Standard and Poor "described the decision as a judgment about the nation’s leaders, writing that 'the gulf between the political parties' had reduced its confidence in the government’s ability to manage its finances."

S&P: United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

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