Of course this should have happened a long time ago. After all its fiscal situation is not a lot different to Greece which is rated JUNK.
Whether they will actually have the guts to carry this through though I do not know. IF they do it means they have finally started doing their job.
If it goes through it will mean much higher interest rates , and thus more
foreclosures and more bank bailouts.
The end game for the Keynesian experiment is approaching.
Lets remind ourselves what little Timmy Geitner had to say a while back.
All you need to know (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.
Personally I wouldn't lend the United states so much as a Mars bar as long as cretins like this are in charge