Heidi Moore: They downgraded the U.S. credit rating. It's like cutting our credit score. We went from a AAA to a AA+ -- which is more than people expected; people thought we'd just be a AA. The importance of this is largely psychological -- we've always been a AAA country. But now that we are a AA+, that's what everyone else will be too. I think everyone else will follow us.
Carney agreed that other countries would be downgraded as well:
John Carney: Remember, we're the country that supports people when they get in trouble. If our credit rating is lower, so is everybody else's.
Friday, August 5, 2011
I don't mean that in a jingoistic way; I'm simply wondering where the safe harbors are in the aftermath of a US default. The people at Marketplace (which has been doing some great work lately) have been thinking along the same lines:
Posted by Mark at 10:20 PM