World: credit shock...

Standard and Poor's credit ratings are an eye opener.

According to Wikipedia, which appears to have reliable and up-to-date data, S&P earmark the following countries as having Outlooks which are "Watch Negatives":

  • Bahrain
  • Belarus
  • Belize
  • Oman.

"Negatives" are listed as:  

  • Andorra
  • Aruba
  • Belgium
  • Cook Islands
  • Croatia
  • Cyprus
  • Egypt
  • Greece
  • Hungary
  • Iceland
  • Italy
  • Japan
  • Jordan
  • Montenegro
  • Portugal
  • Senegal
  • Slovenia
  • United States of America  (even after the downgrade from AAA to AA+)
  • Vietnam.

It's pretty clear to a casual observer as to why most of these places have the Outlooks they have.  Revolutions, turmoil or poor governance being some.  

For America to discover it's in such a group is amazing.  But according to The Telegraph, Standard and Poor's point out today: "The outlook on the long-term rating is negative. We could lower the long-term rating to ‘AA’ within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case."  S&P continues "The political brinkmanship of recent months highlights what we see as America’s governance and policy-making becoming less stable, less effective, and less predictable than what we previously believed." 

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