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The Downgrade

The Hill
source: Crazy George

The Downgrade:
On Aug. 5, 2011, Standard & Poor’s Ratings Services lowered its long-term sovereign credit rating on the United States of America to ‘AA+’ from ‘AAA’. The outlook on the long-term rating is negative.

…the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges…

S&P downgrades the credit rating of the United States (link).
David Beers, Standard & Poor’s Global Head of Sovereign Ratings, and John Chambers, Chairman of the Sovereign Ratings Committee, explain our rationale for lowering the rating. (video: 18:23 minutes)


Market:
“Buffett: US Rating Still AAA, No Matter What S&P Says” by Becky Quick; CNBC (link)

Warren Buffett says there’s no question that the United States’ debt is still AAA and that he’s not changing his mind about Treasurys based on Standard & Poor’s downgrade. “If anything, it may change my opinion on S&P,” the legendary investor said.

“How will the fallout of the U.S. downgrade affect you?” by Greg Gardner; Detroit Free Press (link)
“Standard & Poor’s Defends Lowering U.S. Credit Rating” by David Kerley and Dan Arnall; ABC News (link & video)


Portfolio:
‘Leucadia National Corporation Stock Downgraded (LUK)” by The Street Wire (link)
“Coach Reports Robust Results” by Zacks Equity Research (link)


Life:
“Fatherless to Fatherhood” documentary spot on CNN.com (video)

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