Warren Buffett Says Debt Downgrade Was The Wrong Decision

Warren Buffett spoke yesterday about the recent debt downgrade by Standard & Poor’s. Buffett found the downgrade by the S&P puzzling and stated that it “doesn’t make any sense”. He stated that if anything that the rating should have been raised to quadruple A. US Treasuries are still the gold standard when it comes to investment and the risk of default is virtually nonexistent. [Read more…]

How Will A Debt Downgrade Affect The United States?

S&P downgraded the United States AAA rating after reviewing the government’s debt ceiling debate debacle. The U.S. government lost its top tier rating and dropped to AA+. A lot of people believe that this downgrade will have a substantial impact on the United States and its governmental policy. I do believe that a ratings downgrade should focus the government on increasing GDP growth, reducing unemployment, and increasing fiscal responsibility. But here are a few reasons why the ratings drop does not matter. [Read more…]