Thread: US AAA credit rating downgraded

Originally Posted by Humbert

^quite a bit and it is, no doubt, a huge embarrassment to US prestige however the actual effect on interest rates is yet unknown.

The market is retarded. My guess is that stocks will sell off Monday and bonds will rally. (rates will fall)

Japan has a AA+ rating. Japan also happens to be one of the US's largest creditors. Imagine that, the creditor has a lower rating then the borrower. That should say enough about these rating agencies.

S&P had Lehman bros and Merill Lynch rated AAA the day they went bankrupt. Bank of America has a 5 star rating right now.