Friday, September 14, 2012

Thanks Obama: U.S. Credit Rating Dropped

From the Las Vegas Sun: Egan-Jones, an independent credit-research firm, downgraded its rating on U.S. government debt to AA- from AA on Friday, citing the Federal Reserve's plans to try to stimulate the economy.
The credit rating agency said the Fed's plans to buy mortgage bonds will likely hurt the economy more than help it.
The plan will weaken the value of the dollar and push up prices for oil and other commodities, Egan-Jones said. That would leave less for consumers to spend on other things.
But at the same time, Egan-Jones warned that the federal government's borrowing costs are likely to slowly rise as the global economy recovers.
On Thursday, the Fed said it would buy $40 billion of mortgage bonds a month to help the economic recovery.
It's the second time the Haverford, Pa. shop has downgraded U.S. government debt in five months. In April, Egan-Jones lowered its rating on the U.S. to AA from AA+. It stripped the U.S. of a top AAA rating in July 2011.  http://www.lasvegassun.com/news/2012/sep/14/egan-jones-cuts-us-debt-rating-aa--aa/
I'm not an economist so I have to rely on experts to form an opinion.
I realize that the Obama administration is hoping that this will help but it seems like they are printing more money which will devalue the dollar, causing higher expenses to those of us who are on the sedge, financially.
I don't see how this plan by Obama will help the middle class or the poor..  I can see how this plan will help bankers and the rich who don't need bankers.
So, please, tell me how Obama's plan will help me, the lower middle class?

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