[freespirited]

“I assume US debt will be downgraded to AA later this year. My question: how much will interest rates rise with a downgrade to AA.”

Probably a point and a half to 2 points. Look at other Sovereign Debt countries with AA ratings.

Two points! Wow. Will rates on treasury bonds and CDs go up this much also?

[CapnJack]

T-Bonds and CD’s up 2 points, yeah they could go up by that much. Would be nice to see some returns go up, but that would effectively double the US interest payment on all future debt.