debt crisis

I am writing this post on Sunday and I must say that I am quite anxious about Monday and how Wall Street will act in response to this downgrade.  We will get an inkling of the response once the Asian and European markets open on what is Sunday night in the US, but I suspect it won’t be pretty.  I do suspect some of the response is already built-in given last week’s market malaise. My bigger concern is the institutions which hold US debt as reserves that may be forced to unload it do to their charters’ requirement of holding AAA debt. Continue reading →