US Credit Rating was downgraded by S&P on Friday. What is it going to do to the world?Boom! Crash!??. I think not. In 2002, when S&P downgraded Japan's rating, what happened? Guess.... Nothing! Yes nothing.
Where are countries like China, going to put there excess money if not in Dollar? Euro is as unstable, maybe more. No other currency can play an alternative to USD. Hence, nothing will change on the ground. Of course there will be a bit of Huffing and Puffing for a few days. But it will soon subside as ppl go about their business as usual.
In fact, just a couple of days back after the Debt Ceiling was increased, the Yields for US treasuries went down to just 2.5% for 10 year maturity. Just because S&P downgraded USD 2 days after, will ppl now dump USD? I think not! Lets see how it goes...
I'm not sure of implications for India.
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