Wednesday, July 27, 2011

DAMAGE IS DONE TO US ECONOMY

WASHINGTON/LONDON (Reuters) - The United States will lose its top-notch AAA credit rating from at least one major rating agency, according to a Reuters poll that also found wrangling over the debt ceiling has already damaged the economy.
A small majority of economists -- 30 out of 53 -- surveyed over the past two days said the United States will lose its AAA credit rating from one of the three big ratings agencies -- Standard & Poor's, Moody's or Fitch.
Respondents saw a 20 percent chance of a new recession over the next year, a prospect that some economists say has been compounded by the acrimonious political fight over what is normally a procedural legislative vote on the debt.
http://news.yahoo.com/u-likely-lose-top-rating-economists-000214380.html

BUT, news stories keep coming out about how the "market doesn't seem to care...." IS THE US STOCK MKT STILL A DISCOUNTING MECHANISM?

D

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