S&P Downgrades U.S Outlook, an Animated Tale

If anyone is still confused about the recent S&P downgrading of the U.S. outlook, here's an animated film about the matter. The S&P announcement only portrays a one in three chance that the U.S. would lose its AAA rating, reserving an opportunity later to move down to a one in two chance.

Film courtesy of ZeroHedge.

9 Comments
 

haha I like how is produced by the people who will be royally screwed if this strategic default Midas speaks of really happens. What does "how much longer until America drowns completely in debt" mean? Are we not already drowning? Or does this mean default? And investors didn't really go into a panic. Both the bond and equity markets tumbled and then rallied once everyone realized that treasuries are still the best house in a bad neighborhood.

 
InceptionWon't lie, gotta love how the Japanese view the U.S. S&P downgrade...in a form of animation. Makes things sound less serious. Haha

It's a Chinese language animation produced by a Taiwanese company.

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I'd like to ask a stupid question:

I feel like a credit downgrade in the US would result in a decline in stock prices across many of the sectors. But the Dow sits in a trading range at 12250. This makes little sense to me, unless the general idea is that the government will print money to out of this debt jam , and that will mean inflation, which would result in higher stock prices.

Thoughts?

 

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