Great explanation I found from the baselinescenario.com
"People are worried about the legal-mechanical consequences of a downgrade — in particular, the requirements that some investors (money market funds, some other mutual funds, maybe pension funds and insurance companies) must invest some proportion of their assets in AAA securities. If, say, every money market fund suddenly has to dump all of its T-bills, that could cause systemic problems."
If the downgrade does result in another financial crisis, maybe it's time for Mister Market to rethink how its economy works...
Funny cynical comment, I enjoy reading these:
"Raising interest rates gives Wall Street more money. The debate is not about America, but about how much money can be siphoned in higher rates. And don’t forget hedge funds make money from uncertainty. Wall Street owns Washington."
Last edited by ddkay; 2011-07-15 at 05:07 AM.