It’s not just debt that is the cause of the lost AAA ratitng.
Since the housing/financial crsis, we have resorted to mob rule and gangster government, and gone from being a nation of laws to that of men. Many of the elements that contributed to having the higest rating, like a respect for property rights and orderly bankruptcy processes has gone out the window. And that says nothing about a radical executive that violates laws he doesn’t like. And that says nothing about the jacking of the capital reserve ratios in order to funnel money into Fannie and Freddie and governemntal entites with ratings AA and above, that got us into this mess in the first place. It really was no accident that all those mortgage securities generated by the GSEs were rated AAA and ended up ripping off investors all over the world in a really big way.
The US just isn’t the same place it was when I was a kid, and that’s a real shame.
You got that right. Every credit rating group should have downgraded the US when the government ignored over a hundred years of bankruptcy law and took over GM. That proved that they will nationalize property just like any third world dictatorship even if they call it something else. Regards