S&P has downgraded U.S. debt from AAA to AA+. But what does that mean?
My initial thinking is that the AA+ rating should not have a huge impact. The debt situation was not exactly unknown, and very little new knowledge has sipped out. But to my mind the debt crisis really is a crisis, although that was just as true a year ago as it is today. I’ll reiterate that spending needs to be genuinely cut. Probably, revenues must be raised too, preferably by broadening the tax base. Perhaps a gas tax should be considered as well.