What S&P Did.

[True Federalist (진정한 연방 주의자)]

unless the U.S. runs out of ink and paper, I have no idea how U.S. debt, owed in U.S. currency, can be anything other than AAA.

Which would lead to inflation, which our creditors won't like very much.

doesnt matter in terms of credit rating...all the debt is is a promise to pay in US dollars...it's the dollar's stability that is really in question, but questioning the rating of US debt owed in US dollars is really dumb

But is a US dollar today the same as a US dollar 30 years from now?  So long as the ratings firms were an American only thing it made sense to not consider the effects of the value of the dollar on the returns, since that would affect everything they rate equally.  That no longer is the case, and unless we get our fiscal house in order, we are guaranteeing a bout of self-inflicted inflation that will affect the U.S. economy specifically rather than the world at large.

[Beet]

GOOD NEWS!

The 30 year Treasury bond didn't budge today, despite a 400+ point rally in the Dow, precisely reversing what happened Fri-Mon (The benchmark 10-year also closed higher than it opened, e.g. lower yield). If S&P's rating cut had an effect on the 30 year, whatever happened today counteracted it.

[Fmr President & Senator Polnut]

I think S&P made a silly move, I agree that it was about regaining credibility after it was so badly dented after the GFC.

However their general points were very accurate. This position was reached because ideological extremist no-nothings held the agenda to ransom. You cannot address a debt of this size purely by cutting spending I think THE killer was the lack of ANY revenue increases... there isn't a single credible economist who thinks that condition wasn't mind-numblingly dumb... but like the climate change debates, 'experts don't know anything... until the one who agrees with you comes along'. 

[J. J.]

S&P are a bunch of idiots that have already been proved wrong by the market.  They have zero credibility.

QFT

S & P just held a mirror up to the federal government.  I also wouldn't look at two days worth of data to look at long term trends

Dow Futures are down slightly, at 53.