HJ Sims Market Commentary: Floors and Ceilings

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Markets around the world were stunned when the gold standard credit rating of the United States of America was downgraded by Standard & Poor’s from triple-A to AA+ after the close on Friday, August 5, 2011. S&P had issued a negative outlook in July after warning that failure to reach a sufficient compromise on slashing the deficit would risk this action. They boldly told the world that “the effectiveness, stability and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges”.

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