US government may lose Triple-A rating
News that the US government may lose the vital Triple-A rating which the United States has enjoyed for some time sent shockwaves through US stock markets as the ferocity of the economic downturn finally began to hit home. While there does not appear to be any short-term likelihood of a downgrading of the AAA rating there are serious concerns for the future.
The long weekend in stock markets around the world has also given analysts and investors time to consider the impact a downgrade of the US credit rating would have on the worldwide market. It will be interesting to see how investors react when markets open next week as the next few weeks could be volatile to say the least. This comes hot on the heels of a suggestion that Standard and Poors may well be looking to downgrade UK national debt at a time when the UK economic overdraft continues to increase.
Governments around the world will be keen to avoid a downgrading of their own credit ratings as they have the potential to lengthen recessions and curtail any short-term potential for recovery. While a week is a long time in politics, a day is a long time in the US and worldwide investment markets!
Share this..
Related stories
One in ten pensioners in 'appliance poverty'
One in ten pensioners in Britain is said to lack basic household appliances such as fridges and washing machines.New research says that 800,000 people aged over 65 are without the domestic devices, with a further 900,000 living in homes not fitted with central heating.Letting agency Homewise, which conducted today's survey, claims that a further million pensioners in the UK do not have double glaz...
Read MoreHow could we have avoided this latest economic slowdown?
As the slowdown spreading across the worldwide economy continues to bite deeper into each and every country many people are starting to ask what could have been done differently, how could we have avoided these troubles and more importantly who is to blame?
The fact is that we are all to blame in a small way because we as consumers led the credit based spending spree, we pushed hous...
Alistair Darling copies US policy on bank nationalisation
Alistair Darling has this evening come out and suggested that the vast majority of UK banks should retain a percentage of private investors so that a return to the private sector can be completed as and when the time is right. The UK government currently has significant holdings in a number of leading UK banks and there has been a suggestion that the likes of Lloyds TSB and possibly Royal Bank of...
Read MoreRBS told to reduce bonus pot by £500 million
Royal Bank of Scotland directors have been told they need to reduce the estimated £1.5 billion bonus pot for 2009 by £500 million. This would appear to be the behind-the-scenes deal which the Treasury has agreed with Royal Bank of Scotland directors as a way for both parties to keep face and to maintain the Royal Bank of Scotland board of directors as it is. So what next? The very fact that b...
Read MoreIs the UK economy set for a wobble?
The Bank of England has today confirmed that the quantitative easing program will be halted after reaching the £200 billion level. The monetary policy committee meeting also confirmed that UK base rates will remain at 0.5% for the 11th month in a row, something which many analysts had already forecast. So what is in store for the UK economy? While the Bank of England admitted that the quantita...
Read More