THE DOWNGRADE!


Readers of this blog know my uncertainty when it comes to finance and economics. But the downgrade of USA debt (bonds) from AAA to AA by Standard and Poors is at least a telltale. Of course as we all know the USA does not pay S&P to rate it as do most of its clients. If the ratings orgs had not been in a direct conflict of interest perhaps the 2008 financial crisis would have played out differently.  But whatever the merits of the S&P decision the lower rating will cost many big bucks and force some to forego purchase of

of USA debt. Here are the purchasers hurt:

US Debt:

http://www.businessinsider.com/who-owns-us-debt-2011-7#

Hong Kong: $121.9 billion (0.9 percent)

Caribbean banking centers: $148.3 (1 percent)

Taiwan: $153.4 billion (1.1 percent)

Brazil: $211.4 billion (1.5 percent)

Oil exporting countries: $229.8 billion (1.6 percent)

Mutual funds: $300.5 billion (2 percent)

Commercial banks: $301.8 billion (2.1 percent)

State, local and federal retirement funds: $320.9 billion (2.2 percent)

Money market mutual funds: $337.7 billion (2.4 percent)

United Kingdom: $346.5 billion (2.4 percent)

Private pension funds: $504.7 billion (3.5 percent)

State and local governments: $506.1 billion (3.5 percent)

Japan: $912.4 billion (6.4 percent)

U.S. households: $959.4 billion (6.6 percent)

China: $1.16 trillion (8 percent)

The U.S. Treasury: $1.63 trillion (11.3 percent)

Social Security trust fund: $2.67 trillion (19 percent)

 

 

 

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About vlg338

www.vacationlanegrp.com
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