14 comments on “United States’ Credit Rating Downgraded From AAA To AA+ : A New Financial Fiasco Rippling To Our Shore?

  1. Standard & Poor’s recently downgraded the long-term U.S. credit rating from AAA to AA+ with a negative outlook. In fact, the agency downgraded not only the rating of U.S. debt but also the rating of the country’s political and economic governance capacity.
    From a political perspective, the rating agency’s move has shown its lack of confidence in the U.S. government’s ability to solve debt problems. The agency wrote in its downgrade press release, “The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective and less predictable than what we previously believed.”

    The U.S. debt ceiling has been raised more than 70 times over the past 50 years, but such a protracted dispute between Democrats and Republicans this time was unprecedented. Both parties used the debt limit as a political bargaining chip to gain an advantage in next year’s presidential elections. The “brinkmanship strategy” adopted by the two parties has completely exposed their lack of willingness and ability to solve the country’s deep-seated debt problems.

  2. zawiya : thanks for the insight……it’s alarming. and I agree, although perhaps the analysis bears mistake of perhaps-US$ 2 trillion, the rating by S&P still matters…after all, it’s a renowned and respected agency…

    Fairi : thanks 🙂

    chinadoll : the governance led by Mister President….a backlash? I don’t know…

    Lentera : ohh terima kasih! 🙂

    fasola : apa yg gempak???

    hawaii-5-o : that’s scary…shudder! 😦

  3. Shahrill, your blog has so many things right from your personal lives to the world updates. Great one. A great thinker and commentator you are brother. Good job. Keep it up!

  4. Mitch : thanks! Well, I just wrote what I think and from what I read… I am not a well-versed economist bit from the smithereens of knowledge I’ve garnered while working as a banker, it did open my eyes to be more alert…..

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