Trying to figure out what happened to the $20 bill in my wallet is hard enough. I swear, it was just there…before I bought a magazine..oh and a coffee…um, ok and some really minty gum. So on the one hand I totally get how the US landed in this position. On the other hand, I didn’t even know trillion was a real value – I thought it was a made up amount, like bajillion or kabillion. That said I used to work for a credit rating agency and remember the security measures taken when we downgraded a country. The impact of the recent US downgrade from AAA to AA+ is far-reaching and severe. I know this because of all hushed voices and furrowed brows I see on the news. But I do not really get what the bad news means to me. Y’know?
So dear readers, you get the benefit of my inexperience once again. I spent all day yesterday chatting on twitter working hard to compile a list of articles that can help make sense of what the downgrades mean, and why they matter to us. There were literally thousands to choose from. Maybe even trillions. But I have read – and more importantly, understood – the following list. I will continue to follow closely and send out twitter links to the articles that do not make my brain explode or send me into sweet slumber.
MSNMoney: “It’s like our collective 850 credit score has been downgraded below 720 — from beyond excellent to good but not spectacular.” (with video)
Learnvest: “A judgment flawed by a $2 trillion error speaks for itself”
Montreal Gazette: “This would be akin to priests downgrading God”
Investopedia: “If U.S. debt is now seen as a slightly shakier bet, where in the world is money safe these days”?
Financial Post: “All downgraded countries have taken anywhere from 9-18 years to regain their ratings”.
Forbes: (TheIndexer): “The fact is that I am to blame. Yes, me. The voter.”
Forbes: “For the downgrade junkies, the complete list of links”.
Economist: “Sovereigns aren’t like companies. They can’t go bankrupt, and creditors can’t seize their assets”.
Please send me any links to articles or videos to help add to this list, I’d really appreciate it!!
