It is also important to note that the above decades include not only the major bear markets of 2000 - 02 and 2007 - 08, but also many numerous short - term corrections like the Russian default / LTCM crisis of 1998, the «flash crash» in May 2010, and
the U.S. debt downgrade in August 2011.
Markets were mostly unfazed by
the U.S. debt downgrade.
Not exact matches
«But Clinton is convinced that most American voters did not intend to greenlight a radical anti-govenrment agenda and were appalled by the near default on
U.S. debt and the
downgrading of
U.S. Treasuries.
While both plans would increase the
debt ceiling, ratings agencies have said a short - term increase such as the one proposed by House Republicans may not be enough to protect the
U.S. from a ratings
downgrade.
Standard and Poor's, which
downgraded the
U.S. to AA + in 2011, has kept its
U.S. outlook at «stable,» but has said it will lower the rating to «selective default,» or SD, if the Treasury misses any
debt payment.
Keep in mind that S&P
downgraded the
U.S. even if the government had already raised the
debt limit.
Some of those drops have been the result of self - inflicted wounds, like the Congressional failure to raise the
debt limit in 2011, which resulted in a
downgrading of
U.S. credit.
Such an outcome would be undesirable for the world's investors, however, which explains why ratings agency Standard & Poor's moved to
downgrade U.S. treasury bills to AA + after the
debt - ceiling deal had been reached.
The latest punch was S&P's
downgrade of
U.S. debt.
In fact, investors seeking safety bought even more of the
downgraded U.S. debt, pushing prices on 10 - year
U.S. Treasuries to within a fraction of face value and yields to an all - time low of 2.13 %.
From the rise of Facebook to the fall of Blockbuster, from the
downgrading of
U.S. government
debt to the resurgence of Brazil, predicting what will happen next has gotten exponentially harder.
After sending a copy of your analysis of the S & P
downgrade of the sovereign
debt of the
U.S. to 5 key contacts, I'm going to urge them to read your work on Clorox, as well.
On Monday, the Dow finished down 4.6 percent, the biggest decline in percentage terms since August 2011, when investors were fretting over Europe's
debt crisis and the
debt ceiling impasse in Washington that prompted a
U.S. credit rating
downgrade.
That could set up another showdown like those that took place in 2011 and 2013 — when lawmakers brought the government to the brink of defaulting on
U.S. debt, leading Standard & Poor's to
downgrade the nation's credit rating for the first time.
In the middle of a showdown over the federal
debt ceiling, Standard and Poor's
downgraded the
U.S. credit rating for the first time, from AAA to AA + with a negative outlook.
We remain concerned that if the
U.S. continues the trend of a rising
debt / GDP ratio, it increases the chances of a sovereign -
debt credit
downgrade by the credit ratings agencies.
A standoff in August 2011 rattled financial markets and the political gridlock led the credit rating firm Standard & Poor's to
downgrade its AAA rating of
U.S. debt for the first time in history.
First, our quickly escalating
debt / GDP ratio puts the
U.S. sovereign credit rating at risk for a future
downgrade by some rating agencies, if left unchecked.
The rising
U.S. federal
debt burden now ranks the
U.S. among the most leveraged developed - market countries, and puts the
U.S. at increased risk of a sovereign -
debt credit rating
downgrade if the current trend continues.
However, we believe that the increasing Treasury
debt / GDP ratio puts the
U.S. at risk for a potential credit ratings
downgrade in the future.
A
downgrade of
U.S. debt will mean the end of the
U.S. Dollar as a reserve currency and more broadly the end of the world as American's have come to know it in the Post-World War II Era.
«The latter included China's stock market collapse and its global repercussions and effects on commodity prices; the Aug. 11 devaluation of the renminbi; the
downgrade of Brazilian
debt to junk status by Standard and Poor's on Sept. 9; and the major uncertainties surrounding the possible increase of the
U.S. Federal Reserve funds rate.
Doomsayers have pointed to any number of reasons in recent years why they believed the market was headed for a downturn: Standard & Poor's
downgrading of
U.S. Treasury
debt in 2011; the growth - slowdown scare in China that sent stock prices down 12 % in the summer of 2015; Brexit and the election of Donald Trump, both of which were supposed to be catalysts for a market rout.
-- Interest rates could double if
U.S. debt is
downgraded — «Home Loans ``, for example, that are now below 5 percent, could surge to 9 - 10 percent, killing any chance of fixing the «Housing Crash» or cutting the unemployment rate, which now stands at 9 percent.
The
U.S. credit
downgrade and the European
debt crisis have divided investors into three camps: in the first investors are selling their stocks, in the second they're hunting for safe money havens, and in the third they're holding their breath, hoping to wait out the storm.
The
U.S. territory also is grappling with $ 70 billion in
debt, ratings firms have
downgraded its bonds to one notch above junk and investors fear it could default on its obligations.
The
downgrade could add up to 0.7 of a percentage point to Treasuries» yields over time, increasing funding costs for public
debt by some $ 100 billion, according to SIFMA, a
U.S. securities industry trade group.
So in a nutshell: a rating agency makes a mistake, doesn't own up to it, announces the first
downgrade of
U.S. debt in history, allows said
downgrade to leak two days prior to announcement and inadvertently touches off the worst market volatility since the Global Financial Crisis.
With the
U.S. fiscal cliff dominating the investing landscape, ongoing issues about
debt and another potential
downgrade of the nation's bond rating have put some would - be Treasury investors on edge.
1)
U.S. Downgrade is basically a» Political Leader B #tch Slap» (one I think they deserve): Below is an excerpt from Standard & Poor's (S&P) most recent Sovereign Default Study — the study most applicable for discussing US
debt obligations.
Once in the financial crisis, once in 2011 just following the
debt ceiling crisis and
U.S. downgrade, and for a very short time in the 2010 flash crash.
Or the
downgrading of
U.S. Treasury
debt.
And before that slowing growth in China, the
downgrade of
U.S. Treasury
debt and Greece's
debt problems created fears of a major selloff.
Despite the
downgrade of
U.S. government
debt by Standard & Poor's that occurred in 2011, the market still assigns a higher default risk to corporations over the
U.S. government.
A critical geopolitical event elsewhere, deteriorating
debt conditions in Europe, an increasing
debt - to - GDP ratio in the United States, or further
downgrading of our nation's credit rating could all push the
U.S. and global economy into a recession.
For example, during the contentious 2011
debt ceiling debate and the resulting S&P
downgrade of the
U.S. government
debt, our survey showed that the right track - wrong track spread widened to a survey record of 64 percentage points.»
Despite the Standard & Poor's
downgrade of
U.S. debt, a worsening European sovereign
debt crisis and rising stock market volatility, the
U.S. economy continues to expand and create new jobs, supported by strong consumer spending and business investment.