Topic: Economy, what's left of
Lets end the week with an AHTODJASO- debt downgrade and INTEREST RATE RISE ON THE DEBT:
"S&P downgrades U.S. credit rating for first time
By Zachary A. Goldfarb,
Standard & Poor’s announced Friday night that it has downgraded the sterling U.S. credit rating for the first time.
The move came even though the Treasury Department said that it had found a math error in the firm’s calculations of deficit projections, according to a person familiar with the matter.
S&P decided to lower the AAA rating, held by the United States for 70 years, to AA+ after a bipartisan debt deal signed into law this week failed to assuage concerns about the nation’s growing spending.
Analysts have said a downgrade could increase the cost of borrowing for the U.S. government and lead to tens of billions of dollars in more interest costs per year. That could translate into higher borrowing for consumers and businesses, too.
A downgrade would also have a cascading series of effects on states and localities that rely on federal funding, including in the Washington metro area, potentially raising the cost of borrowing for schools and parks."
An unavoidable consequence of poor credit / late pay / no pay / default is a higher interest rate. Why that is is beyond me, except as a predatory practice, since it is illogical that someone unable to pay can not get to a position 'more able to pay' by having the loan total go UP.
The Govt has desperately kept interest rates down to prevent investors and you from making anything on interest. That charade may be over:
"That could translate into higher borrowing for consumers and businesses, too."
That means interest rates across the board go up. The DECEIT here in this statement is that INVESTORS will win (including people with savings accounts) as interest rates will go up everywhere, not just in borrowing costs.
