WSJ.com Alert:
S&P downgrades Spain to ‘AA’ with a negative outlook, saying the country is likely to have an extended period of subdued economic growth.
Markets react: DJIA plummets from +23 to –22 in seconds after S&P drops Spain’s debt rating. And the sovereign debt nightmare is only beginning. The UK is next. But the USA borrows more money faster than anyone, and Socio-History blog ain’t happy:
As I pointed out yesterday, US debt threatens to end the economic stabilization. You cannot borrow your way to prosperity.