Standard and Poors, a credit rating agency for the world, put the United States on watch for a downgrade of the debt of the U.S. government. This will place much more pressure on our elected officials to balance the U.S. budget. This also means that we as a country need to balance our books, or at least make a credible effort to do so.
As far as the stock markets go, this latest development will give investors pause, as they ponder and wait to see what develops in the Congress. I see the bid for U.S. stocks being weak for the foreseeable future. The indexes should be weak for awhile. Despite the risks that bond funds hold in a world of rising interest rates, they may be the best way to limit risk now...
Here is the link to the story of the S & P story:
http://www.bloomberg.com/news/2011-04-18/standard-poor-s-puts-negative-outlook-on-u-s-aaa-rating.html
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