Updated: Understand this: the socialist/macroeconomic European experiment is imploding. Greece is still in a mess. Austria and France, if downgraded, could represent the tip of the financial iceberg, promising serious problems throughout Europe and, soon, the United States.
The stock market will take a hit, according to experts, but the treasury will celebrate in the [very] short term.
While financials in this country are taking a hit, 10 year T-Bills are down to 1.8%. Money is flooding into our treasury (from Europe). What does this mean? Well, it means that billions of dollars are flowing into our treasury (money that we can spend) on a promise to pay back this money at a very low interest rate.
This scenario, in the short term, is considered "good." The problem is, of course, this is borrowed money - cheap as it is - that will add to our nation's debt management costs in the future. Understand that if we have to borrow money, cheap T-bills are the way to go. . . . . . . and we do have to borrow money.
The downgrade has not been confirmed but the news of the downgrade is coming from French television.