Do we want the US credit rating to go down?

**SeanH** · 10-16-2013, 09:12 AM

You're thinking small ball. The current America, good and bad, enjoys a status quo in which the world assumes that we will make right on our obligations and debts. The uncertainty of where we would end up if those assumptions were to be questioned is not worth whatever sort of insignificant benefits you might reap from marginal adjustments in interest rates. What if the end result was a collapse in the value of the dollar? Or a change in perception of America by other countries in which they choose not to invest here in the future. How about the instigation of a long term shift from the use of the dollar in global transactions to some other sort of denomination. Weird events like this can lead to unexpected changes changes down the road.

**bigdaddybus** · 10-16-2013, 10:17 AM

Originally posted by SeanH View Post

You're thinking small ball. The current America, good and bad, enjoys a status quo in which the world assumes that we will make right on our obligations and debts. The uncertainty of where we would end up if those assumptions were to be questioned is not worth whatever sort of insignificant benefits you might reap from marginal adjustments in interest rates. What if the end result was a collapse in the value of the dollar? Or a change in perception of America by other countries in which they choose not to invest here in the future. How about the instigation of a long term shift from the use of the dollar in global transactions to some other sort of denomination. Weird events like this can lead to unexpected changes changes down the road.

I agree with what you said, other than "collapse in the value of the dollar" sounds like a gross exaggeration.

**Jerry91** · 10-16-2013, 11:04 PM

I don't think it will be good if the US credit rating goes down. If such a thing happens, it will not only impact the US but will also have a negative impact on the world economy as well.

**ua_guy** · 10-17-2013, 07:28 AM

The whole interest thing is kind of ridiculous IMO. It's like having your home burn to the ground and being excited because at least standing next to the fire makes you warm. Having the US credit rating dropped is a slippery slope to economic collapse. Interest rates were already on the rise before this as the economy came up into a fast idle over the last couple of years.

**bigdaddybus** · 10-17-2013, 08:56 AM

Just curious how it would have impacted the average US consumer.

1. Would my 3.25% 30 yr fixed VA mortgage be cancelled? Now there is an impact!
2. Would saving account rates improve?

Does anyone on here actually belive the US GOVT should have the highest possible credit rating?

If so, what would the credit rating be if we actually had a balanced budget with a surplus paying down the national debt? would we just add another + to the rating scale and call it good?

To me its all just a bunch of political noise. I have had the largest growth in my personal wealth since Obama has taken office. Is that thanks to that administration? Hell no. Just the byproduct of a guy in his late 30's in the prime earning years that has a good job.

**Chris Leese** · 10-17-2013, 11:36 AM

If you have a fixed mortgage, it would not be cancelled. It is good that you locked in a low rate.

Savings accounts would most likely improve some but there are "other" issues that would arise that would impact you. For example, if rates rise, it could lead to inflation as companies/people will now need to pay more to borrow money. The costs would be passed along to consumers and would be seen in rising prices.

**marvholly** · 10-18-2013, 02:25 AM

It would be great if interest on savings/MM/CDs went up BUT
there would be at an at least comensurate increse in the rates for motgages, autos, cc......That would positivly cause demand to go down resulting in further layoff and/or reduced working hours.

Are you SURE you want higher savings rates paid? They have beeen VERY slowly creeping up the last couple months.

Do we want the US credit rating to go down?