U.S. debt crisis weighs on markets at midday

 

 

Growing worries about the U.S. debt crisis has markets in a downturn on Monday, though investors seeking a safe haven in a crisis drove the cost of gold higher.

 

Read more: http://www.montrealgazette.com/business/debt+crisis+weighs+markets+midday/5154682/story.html#ixzz1T8qnt0sl

 

 

 

 

 

 

Note what does this mean for the US and the world? What is going to happen?

Edited July 25, 201114 yr by nec209

Actually nec, the US and Canadian Markets seem unconcerned about the "so called" crisis. Last night (Sunday) American Stocks selling in Asian markets, off the bat did sell down 140 points (DOW) and gold/silver were up, but settled down and after North American Markets opened were back up. I did consider selling my own stocks, in after hours trading, Friday after Obama's scare comments, could have done, but decided against it.

 

Down grading of the US Credit Ratings are almost inevitable and probably long over due, but short of modest rate increases the US will pay to service new bonds, will be a gradual process, which IMO all US Interest Rates are and have been artificially held down for far too long, will be a good thing. The only meaning to the World Economy, including Canada will be the devalued US Dollars, which means cheaper products sold in other Countries and increased prices of foreign good in the US.

 

Keep in mind those same "Rating Sources" also refused to down grade Fanny/Freddy, while the Housing Bubble burst, allowing continuation of derivative sales by US Banks all over the World, permitting a real market crash. If they now look realistically at US Debt verses GDP (near 100%), along with unsustainable obligations, it MIGHT force Governments (US States and Federal) to actually do something, BEFORE a crash!!!

 

There is absolutely no change the US will default on any debt obligations, but that would make for a different story...

They will keep passing short term measures at a very minimum.

Anyone watching CNN it has been all over the news.