Saturday, August 13, 2011

instaPoll: Weigh in with your thoughts on the nation's credit rating downgrade

Congressman Randy Forbes
Last Friday, the credit rating agency Standard & Poor's (S&P) downgraded the nation's credit rating from AAA to AA+, the first downgrade since the U.S. won the top ranking in 1917. S&P said that it made the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country's debt situation. One of the biggest questions after the downgrade was what impact it would have on both Main Street and Wall Street. The nation's long-term loans are considered the basis for all other interest rates, so higher rates on long-term U.S. debt could lead to borrowing costs on everything from mortgages to car loans. That would also make it more expensive for state and local governments, companies, and consumers to borrow money. S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. Analysts say it could be tough for the U.S. to regain the AAA rating soon, especially given its current economic challenges. S&P officials implied that it will take years to see a meaningful change in the U.S. fiscal situation and in the government's ability to cut the budget. The Dow Jones Industrial Average closed down 635 points Monday, dropping below 11,000 as the impact of an unprecedented downgrade to the U.S. credit rating reverberated through financial markets. However, stocks rebounded Tuesday when the Federal Reserve announced that it had voted to keep interest rates near zero through 2013. The market again plummeted on Wednesday and the volatility is forecasted to continue.

Note: Typically, the instaPoll offers quick answers to choose from on the 'hot topic' of the week, including the opportunity to share additional thoughts on Randy's blog.  Due to the variety of reactions, concerns, and thoughts regarding the downgrade of our nation's credit rating, Randy invites you to weigh in this week directly on his blog to answer the 'Question of the Week.'

Question of the Week: What are your thoughts and concerns regarding the S&P's recent downgrade of the United States' credit rating?

Share your comments on Randy's blog here.

Find out the results of last week's instaPoll here.

Listen to Randy's thoughts on the recent debt deal here.

Stay in Touch with Randy:

Sign up for the Washington Update, a weekly review of Randy's work in Washington and find out what's on his mind by receiving the Capitol Monitor each week.

Join the conversation with Randy and other neighbors across the Fourth District by visiting Randy's blog.

Stay current by checking out Randy's Facebook page and subscribing to his Twitter feed. 
Home | ContactUnsubscribePrivacy | Office Locations
Please do not reply to this message. This email address does not accept incoming messages. To send an email, click here.
Trouble viewing this email? See it in your web browser:

No comments:

Post a Comment