U of L finance professor says U.S. debt still gold standard despite downgrade
08/11/2011 04:06 PM
The United States may no longer have a AAA debt rating from Standard and Poors, but the demand for U.S. treasuries has gone up said University of Louisville finance professor Rohan Christie-David.
But if you have a 401(k) plan or own stock or know someone who does, it still a difficult time. For instance, this week the market has been a massive rollercoaster ride.
It was down 600 points on Monday, but rebounded about 400 on Tuesday. Wednesday saw it head back down by another 600 points and finally today up by 423 points.
The economic yo-yo of the stock market has compounded the uncertainty of the U.S. and world economy, has frozen businesses and held unemployment around the nine percent mark. Jobs remain scarce as well.
Senior producer Lanny Brannock spent some time today with a University of Louisville finance professor to find out if we’re looking at a double-dip recession.
Rohan told Pure Politics that despite the downgrade from one of the three agencies who issue credit ratings, it is far, far better than AAA-rated debt from European countries. And the 24 hour news cycle has made the market swings wilder than they should be.
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