United States Loses AAA Credit Rating - Watch Mortgage Rates
Posted by Matthew Boreen
on Saturday, 06 August 2011 in Real Estate One Stop Shop Blog
Matthew Boreen
Founder of RealEstateSwap.com. I kiteboard, snowboard, work with robots, study AI, and play jazz clarinet.
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The United States AAA credit rating was downgraded for the first time by Standard & Poors, claiming the nation’s political process is broken and criticizing lawmakers for failing to cut spending enough to reduce record budget deficits.
Not only did they lower the credit rating to AA+, the outlook is still considered “negative” as it becomes less confident the U.S. will end Bush-era tax cuts or tackle entitlements. If spending reductions are lower than agreed to, interest rates rise, or new fiscal pressures result in more government debt, the rating may be cut to AA.