The downgrade of the US government house of cards is starting to occur even if rates have declined. Clearinghouses are being downgraded. Fannie and Freddie have been downgraded. Collateral demands will increase even if does not happen in one day.
The embarrassment of S&P by the US Treasury from their calculation mistakes means that S&P will have to show that other AAA countries that should be downgraded are also adjusted lower. We should expect further downgrades. Municipal bonds will be next. Should a defeased bond be AAA?
The embarrassment of S&P by the US Treasury from their calculation mistakes means that S&P will have to show that other AAA countries that should be downgraded are also adjusted lower. We should expect further downgrades. Municipal bonds will be next. Should a defeased bond be AAA?
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