The S&P Effect: Market Fears S&P Push To Double Down On Bad Economic Policy
While the markets don't give a fig about S&P's analysis of the creditworthiness of US debt, it does appear to fear that governments will be pushed to follow S&P's bad economic advice:
The downgrade of the United States’s debt to AA+ from AAA has global implications, said Alessandro Giansanti, a credit market strategist at ING in Amsterdam. “We can see that this may force the U.S. to move more aggressively to cut spending,” he said, something that could drive the already weak economy into recession and weigh on the economies of all of its trading partners. “That’s the main driver” of the stock market declines, he said.
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