The US Debt’s Affect on Online Banking November 2011
The US debt’s affect on Online Banking November 2011 might still play a part of the rates you can earn when investing your money. It is still unclear since this week’s debacle by the Super Committee‘s failure to reach an agreement on budget cuts. This has triggered the automatic cuts to take affect starting next year.
S&P has already stated they will not further downgrade the US Government’s credit rating as they did back in August 2011, but other agencies have not yet committed to this course of action or inaction. What has been made clear is that if the automatic cuts do not take effect in January of 2013, S&P will again downgrade the US credit rating.
Financial experts from Merrill Lynch have made a statement into this scenario by suggesting the either Moody’s or Fitch credit reporting agencies will now downgrade the US credit ratings. This has not yet occurred, but it could. Moody’s has already given it a negative outlook for the near future and worries on the effect to the US economy with another downgrade are real.
In the past the US Government could spend to help bring the US economy out of a recession. They have failed to do so since the financial crises just a few years ago. Instead the government decided to shore up the financial sector of business and leave the remaining business sectors to fend for themselves. With these automatic spending cuts in place, they will no longer have that option and the economy across America could get even worse.
As for the bank rates from the online banks across America, they are already at all time lows. This is great for those looking to borrow, but terrible for those looking to save their funds. What is in store for America and its citizens is still uncertain. No one in Washington is doing their job to correct the situation. The effect of the US debt crisis will now be played out for history to record.
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Black Friday’s and the use of Online Banking | Online Banks on
Mon, 28th Nov 2011 6:04 am
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