Echo To All

Should the U.S. Lose Its AAA Rating?

Does it really matter what the rating is, w/respect to countries? (companies I understand the philosophy that some funds can only hold AAA because their money managers can not be bothered by doing any real homework)

When it comes to countries however, does an agencies rating really matter more then the power and might of a countries military? Or its stable political system? or its ability to handle commerce? Or, on a relative basis, as the economic engine?

Will a rating angency lowering its rating matter, when the system is at a low point, and the threat of social unrest is very real... where the safest place to put your money is in the strongest military might. the market player will simply not care about ratings, they care about safety/security.

I agree with the last statement... the market will price things accourdingly. But for now, they choose safety because the system was at a very real state of collapse, and when things (continue to) stabilize, we will see the treasuries yields rise, along with riskier assets. (if you want to define this rise in yields as the US lossing its AAA status so be it)