Saturday, August 13, 2011

Deficits, Debt and the Downgrade: Implications for Financial Markets and the U.S. and World Economies

Was Standard & Poors justified in downgrading the U.S. credit rating to AA+ from AAA? Not at this point, says an analysis by Ross DeVol, the Milken Institute's chief research officer.
Ross C. DeVol
"The mistake would be inexcusable for anyone completing Macroeconomics 101, let alone the credit agency that is considered the top expert in the default risk of sovereign debt."
But with the rating downgrade already done, what's ahead for the jumpy financial markets and economies at home and abroad?