Can someone please help answer the following in 1-2 pages with the questions asked?
On Friday, August 5, 2011, the rating agency Standard and Poor's downgraded the U.S, from AAA to AA+. However, the other major rating agencies -- Moody's and Fitch -- retained the AAA status for the U.S.
Do you agree or disagree with the S&P downgrade? Given your understanding of bond markets, what signals did the the bond market send in response to the downgrade? Is this problematic? What other risks can you identify?
Please feel free to supplement with articles, but you must cite these.