Finally., the inevitable happened over Friday night.
USA, the super power, dream land which has been screwing up its finances over last 20 years... lost its credit rating from AAA to AA+ by S & P Rating.
As our china friends puts it "The US government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone,"
I have no faith in rating agencies... they react after the numbers are out... which are bit late and fair ... but no use to retail investors as the stock market speculators kill the prices anyway before it actually happens !!!
But I believe in one thing - One cant keep borrowing to survive. A country has to live within its means. No one can escape that over a period of time... But the biggest difficult for US is its near zero interest rates... it would be interesting to see how they recover from the part 2 of 2008 toxic cocktail crisis...
I also believe that Italy would never default during this crisis. Let us wait and see abt my prediction.
21st Century would rightfully belong to BRIC ! (Bric - Brazil, Russia, India and China) South Korea, Singapore would give accompany them in this sweet journey !!!
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