America gets a ‘D’?

Harry Bennetts
Categories: Real Estate Trends

“D’s” get degrees. It was only a few months ago that I was still in college and worrying about grades. Luckily, for me, I now only have to worry about getting a decent job and paying back a bunch of loans. To tell you the truth, I think I would rather be worrying about grades. Unfortunately, the U.S. government might need to start worrying about their own grades pretty soon, but these grades won’t get a degree.

According to Bloomberg.com, Standard & Poor’s is going to lower the U.S. credit rating from a AAA ranking down to a D and Moody’s Investors Service said it will probably reduce its ranking if the government fails to increase the debt limit, which would lead to a default. “Moody’s said it would probably assign a position in the Aa range, or within three steps of its highest level.”

However, John Chambers, chairman of S&P’s sovereign rating committee, doesn’t necessarily think that they will have to reduce their rating,”…we think the government will raise the debt ceiling. They’ve raised it 78 times more or less since 1960, often at the last moment, and we think that will be the case this time.”

The current borrowing limit is at $14.3 trillion, but what could a little more hurt? It is almost as if money is a figment of our imagination, it is like it can just be created out of thin air. Hmm, wouldn’t that be a spectacular invention? A machine that turned air into money! You would be rich! And, more importantly, you could help out the U.S. with our debt problem, and you would be rich! If only I were an inventor.

Well, if you happen to figure it out, let me know. Also, if you figure it out before August 2nd, the day that the U.S. Treasury said that our ability to pay the U.S. debt expires, you could probably shoot some hoops with President Obama!

What do you think about the U.S. debt ceiling?

Source article by John Detrixhe and Wes Goodman from Bloomberg.com

#CRE #economy #finance

 

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Jun
29

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