Wow!!! With all the negativity playing out at the world's stock exchanges, this isn't coming
at the best of times for the US and the business world at large. What's your take on this??



(CNN) -- The Standard & Poor's rating agency announced Friday that it has downgraded the U.S. credit rating to AA+ from its top rank of AAA.
"The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," the agency said about the move, which was announced after the markets had closed.
Rating agencies -- S&P, Moody's and Fitch -- analyze risk and give debt a grade that is supposed to reflect the borrower's ability to repay its loans.
The safest bets are stamped AAA. That's where U.S. debt has stood for years. Moody's first assigned the United States a AAA rating in 1917.
Rumors of a downgrade surfaced shortly after Italian Prime Minister Silvio Berlusconi announced in Rome that finance ministers of the Group of Seven industrialized nations may meet "in a few days" to discuss the sagging world economy.
The G7 members are Britain, Canada, France, Germany, Italy, Japan and the United States.
Asian markets sink Markets across Asia, Europe down Jobs: Calming waters or raising fear? July job numbers better than expected

The announcement came on a day when financial anxiety gripped the globe. Stock markets worldwide saw intense volatility amid worries of a widening debt crisis in Europe and a stalled economic recovery in the United States.
Stock market values fell across Asia and Europe on Friday. U.S. markets were dramatically up and down a day after having their worst day since the 2008 financial crisis.
Concerns about debt issues in Europe appeared to battle with optimism that a positive U.S. jobs report indicated the American economy is not headed into a new recession, the dreaded "double-dip."
"The crisis in Europe is quickly becoming on par with the financial crisis of 2008," David Levy, portfolio manager at Kenjol Capital Management, told CNN Money. "The jobs report shows that things aren't getting much worse in the U.S., but the focus is clearly on Europe at this point."
The Dow Jones index spiked 170 points in early trading on a better-than-expected jobs report, but then dropped by 200 points in mid-morning trading. It closed Friday up 60.93 points (0.54%). The Nasdaq closed down 23.98 points (0.94%).
In London, the FTSE 100 closed off 146 points, or 2.7%, to close the week down nearly 10%. Germany's DAX fell 2.78% to finish the week down nearly 13%. And the French CAC 40 declined 1.26% to finish the week off 10.73%.
"We are going to get through this," Obama said before the downgrade at the Washington Navy Yard, where he announced a jobs program for veterans. "Things will get better. And we're going to get there together."
Obama, who spoke Friday afternoon with France's Sarkozy and German Chancellor Angela Merkel about the crisis, noted that July marked the 17th consecutive month of private-sector job growth in the U.S. but said much more work needs to be done.
CNN's Ben Brumfield, Laura Smith-Spark, Mariano Castillo, Mike Pearson and Kendra Petersen contributed to this report.

http://edition.cnn.com/2011/BUSINESS/08/05/global.economy/index.html?hpt=hp_t1

This is not a good news for people in America. They just frustrate the system to give Obama a bad name. Bush pushed for debt increase 5 times, Reagan did that 7 times, but Obama only asked for I time, the Republicans refused to vote for it. If it was a white man as the President, they would have supported the debt increase. Too bad, Racial segregation is worst in the so called Free Society.

I got burnt this week, losing almost all my CFD money playing the markets. You should have seen the swings on the Dow yesterday. Swinging between  300 pips in minutes sometimes seconds. I was so scared I couldnt trade nothing. To be honest I dont know what Monday is going to be like but I think the sell off will continue. These are hard times.

@ Kizito

It would have been so nice if this only affected the US, but the American economy is so linked to other developed economies that when they sneeze in America, the rest of the world catches a cold.

I'm not sure if this is bad or good news. The stock market can crash again for all i care . . . perhaps that is what will get the tealiban party of America (aka the GOP) to wake up from their slumber. Racial politics at its best.

The debt deal bickering shone a spotlight on the American economy and her ability to push through what is necessary to get the economy back on consistent growth. Her growth prospects for the medium term is grim and in the long term uncertain and the only way the stocks will go is down south taking into consideration concerns also in the Eurozone economies especially now that Spain is showing signs of acute economic "haemorrhage" and there are scramblings in Italy to keep its own financial house in order!! Portugal is an honourable mention in this group too, so technically speaking, the downgrade was being expected. The question really is, will the other rating agencies follow suit considering the already "bleeding" world stock exchanges??


@ Kizito96
However tempting it is to play the racial card here, it is pretty difficult to come to terms with the furore generated by Obama's one time request to raise the debt limit compared to the "not worthy of news" stance that other debt limit requests may have received before now. Sad isn't it??

I disagree with the racial discrimination suggestions. It oesnt work that wa, not at the top at least. If that was the case why didnt soldiers refuse to fight when Colin powell was the chief of the armed forces? Obama is part of the system. If he wasnt he wouldnt be president now. I just feel sorry for all those black people that were jumping for joy when the man got elected. People jumping for joy for a man achieving his own dreams . what has Obama done for the average black man or for the African continent since his election Nothing! No wait, He is part of the imperialist team that has brought death and destruction to Libya, the foremost pan African country. Thats the reward for all the fools who were jumping and taking holidays because a black man got elected as president in America.

fiesty:

I disagree with the racial discrimination suggestions. It oesnt work that wa, not at the top at least. If that was the case why didnt soldiers refuse to fight when Colin powell was the chief of the armed forces?

this is comparing apples to oranges. The army is the army, there is no room for dissent. However congressmen can refuse to release the purse-strings should their intention be to damage the president. For the first time in America's history, no other president has had to endure personal abuse from elected congressmen - Joe Walsh (the president is a liar), Joe Wilson e.t.c. not to forget Mitch McConnell who stated in 2009 that his sole most important goal was to ensure the president was not re-elected . . . and that was way before he had proposed any policies he could have disagreed with.

fiesty:

Obama is part of the system. If he wasnt he wouldnt be president now. I just feel sorry for all those black people that were jumping for joy when the man got elected. People jumping for joy for a man achieving his own dreams . what has Obama done for the average black man or for the African continent since his election Nothing!

This is real dumb. Obama is president of america not the president for the black man only. What should he have done specially for the black man? Employ them through special racial schemes at the expense of well-qualified whites? And exactly what should he have done for the african continent? Is he the president of africa?

fiesty:

No wait, He is part of the imperialist team that has brought death and destruction to Libya, the foremost pan African country. Thats the reward for all the fools who were jumping and taking holidays because a black man got elected as president in America.

the joke is on those who were jumping around . . . i guess few of them understand that being president of america does not mean they now gain access to free food by virtue of skin color. that is reverse racism.

You are the dumb one for seperating quotes 2 and 3. It was part of the same sentence and I asked what he had done for the blackman not because I expect him to do anything or because he should but because of the magas that were jumping for joy and celebrating worldwide because he was elected.

Apples and Oranges you say abi. You think any ordinary man, a mixed race one for that matter will just walk off the streets and becoem the president of the US? Obama is part of the system and the system is consuming him right now. Obama that attended Bilderberg with Hilary in secret sending journalists that were on his campaign trail on a wild goose chase. I say it again. It has nothing to do with colour.

it is too simplistic to simply assume that congressmen and women will jeopardise the future of their own children (white mainly) because of the colour of the skin of the president. It is just ridiculous. If it was something that only brought personal disgrace to him then I may buy into the conspiracy theory but otherwise it is clutching on straw

norrisman:

You are the dumb one for seperating quotes 2 and 3. It was part of the same sentence and I asked what he had done for the blackman not because I expect him to do anything or because he should but because of the magas that were jumping for joy and celebrating worldwide because he was elected.

Too many fools commenting on these boards. What has Obama to do with the magas? did he promise them anything?

norrisman:

Apples and Oranges you say abi. You think any ordinary man, a mixed race one for that matter will just walk off the streets and becoem the president of the US? Obama is part of the system and the system is consuming him right now. Obama that attended Bilderberg with Hilary in secret sending journalists that were on his campaign trail on a wild goose chase. I say it again. It has nothing to do with colour.

Dumb. Part of which "system"? Are we now spewing nonsensical conspiracy theories without evidence? And what has this excuse got to do with the nonsense about racism not being a part of it because Collin Powell made it to the top of the military cadre? that was what i called apples and oranges dude, pay attention.

norrisman:

it is too simplistic to simply assume that congressmen and women will jeopardise the future of their own children (white mainly) because of the colour of the skin of the president. It is just ridiculous. If it was something that only brought personal disgrace to him then I may buy into the conspiracy theory but otherwise it is clutching on straw

Ask Rush Limbaugh, Mitch McConnell, Joe Walsh, John Mica, Jim Demint e.t.c. these are men who have vowed to destroy the Obama presidency irrespective of the havoc to the US economy. You really should know what you are talking about before strolling in here to make noise.