Debt Ceiling: A Downgrade Would Be Costly
This is for all those who say that not increasing the debt ceiling will have no impact whatsoever...
1. Two rating agencies -- Moody's and Fitch -- have already said that they will consider downgrading U.S. debt from its current triple A rating.
2. The Financial Times today published a story that said:
“If Standard & Poor’s or any of the other major rating agencies downgrade the US, Treasuries would likely drop in value, possibly by as much as $100bn,” said analysts at S&P Valuation and Risk Strategies, a research team separate from the agency.