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To: glorgau

A downgrade doesn’t matter if it doesn’t affect the rates?

Seems to me that the lower the rating the higher the cost (rate) to raise money. Or we can just print like crazy, drive the dollar down down down and pay higher prices on all we buy!

It is always best to keep one’s mouth shut and not let others think you are a fool, than to open it and remove all doubt.


10 posted on 01/14/2013 10:43:17 AM PST by stocksthatgoup (ZERO DARK THIRTY (coming soon to an embassy near you))
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To: stocksthatgoup
It is always best to keep one’s mouth shut and not let others think you are a fool, than to open it and remove all doubt.

A downgrade to the US credit rating hasn't affected Treasury rates. Have they risen to historically high rates because of our "bad rating"?

Nope, US Treasuries are practically below the rate of inflation. Relative to the rest of the world, the US is still a "safe haven". The bets now are that when the catastrophe happens we'll be the last man standing.

Remember the old saw - markets can remain irrational longer than you can remain solvent.

15 posted on 01/14/2013 12:32:39 PM PST by glorgau
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