After a tough week for the markets, the "Cherry-On-Top" is that the S&P downgraded the United States' credit rating.
Happy Birthday Mr. President, you now own the only credit downgrade in modern U.S. history.
It is going to be a tough week for Tim Geithner too. Did he really say there was ‘No Risk’ of a Downgrade? Unfortunately for him, there is a video showing that he did.
Here is an excerpt (from April 2011):
Peter Barnes “Is there a risk that the United States could lose its AAA credit rating? Yes or no?”
Geithner’s response: “No risk of that.”
“No risk?” Barnes asked.
“No risk,” Geithner said.
Here is the clip:
I'm curious, how much do you think this will matter in the long-run?
It’s just ironic that after all of that hoopla the downgrade happened and the world didn’t come to an end.