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08-08-2011, 02:09 PM
eh... US can always print money and fulfill its debt obligations.
Unlike a bank that will bankrupt if there is a bank run.
Unlike Greece too, US is in control of its currency.
The US T Bills and bonds are as good as before except that the foreign investors will suffer from foreign exchange losses due to a weaker US dollar. To US investors, they will face inflation due to weaker US dollar.
I think S&P is paiseh about not doing anything in downgrading the toxic CDO in 2008. So, this time round, it bravely downgrades US rating.
Unlike a bank that will bankrupt if there is a bank run.
Unlike Greece too, US is in control of its currency.
The US T Bills and bonds are as good as before except that the foreign investors will suffer from foreign exchange losses due to a weaker US dollar. To US investors, they will face inflation due to weaker US dollar.
I think S&P is paiseh about not doing anything in downgrading the toxic CDO in 2008. So, this time round, it bravely downgrades US rating.