Standard and Poor's lowering of the US Government Bond ratings was based more on its inability to come to a political resolution to ensure the payment of its debt, primarily longer term bonds. The lowering of the credit rating was not based the debt interest and principal not being repaid or in imminent danger of default but over the political petty bickering.

The Standard and Poor's action was precipitated directly by the teabagger's assertions and the lack of political compromise to reassure the investment quality of US Treasury obligations ...

For those of you in Europe, Greece is in meltdown mode, Ireland is close, Portugal is on the watch list, Italy and Spain are on the EBC's "panic list." The ECB has indicated that they will not be able to support the Italian and Spanish governments' obligations should they default. So, if you are a large corporation your choices of where to park 50? Million in safety (government short term bonds) are limited ... Where is a safer bet; London (AAA), Singapore (AAA) or Washington DC (AA+) ? When it comes to big money patriotism goes out the window ...

From Standard and Poor's statement;

Quote:

Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria ... Nevertheless, we view the U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged. ... The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. ... Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated sovereign peers ... In our view, the difficulty in framing a consensus on fiscal policy weakens the government's ability to manage public finances and diverts attention from the debate over how to achieve more balanced and dynamic economic growth in an era of fiscal stringency and private-sector deleveraging (ibid).... www.standardandpoors.com/ratingsdirect

So, if there is a meltdown Monday, that remains a real possibility, have a cup of tea and enjoy the ride ...

Be careful what you ask for you might just get it ...