Even if a U.S. debt downgrade might not be the end of the world - if Japan's track record is any...


Even if a U.S. debt downgrade might not be the end of the world - if Japan's track record is any guide - certain sectors could suffer. Big banks (XLF -0.6%), whose credit ratings get a boost from the implied support of the U.S. government, could feel pain with a downgrade of their sugar daddy. Big banks are also massive holders of Treasury debt. BAC -1.2%, JPM -1%, C -0.7%.
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Comments (2)
  • Neil459
    , contributor
    Comments (2636) | Send Message
     
    Obama must have put out the word. His minions are now reporting that a debt downgrade is no big deal. Next we'll have the headlines, "Obama steps in and mitigates the debt downgrade to keep it from affecting Americans."

     

    Then we'll have a change in the bank solvency rules so that Treasury debt ratings do not matter. Bank problem solved.
    25 Jul 2011, 03:45 PM Reply Like
  • BRUCE LM
    , contributor
    Comments (42) | Send Message
     
    Who !@#$%^& cares about the debt policy?......
    25 Jul 2011, 03:53 PM Reply Like
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