S&P's Chambers: Pressure building on AAA ratingIf treasuries lose AAA, the entire game is over. Meanwhile, here's more on how the Fed is running out of money, and raising more through emergency auctions. The last few months, those have mostly - overwhelmingly - been sales to sovereign wealth funds and similar foreign-governmental interests. Is this a good idea, and is it a stable situation?
Wed Sep 17, 2008 12:19pm EDT
By Walden Siew
NEW YORK (Reuters) - Pressure is building on the pristine "AAA" rating of the United States after a federal bailout of American International Group Inc, Standard & Poor's sovereign ratings committee chairman said on Wednesday.
The $85 billion bailout of AIG on Tuesday by the U.S. Federal Reserve "has weakened the fiscal profile of the United States," S&P's John Chambers told Reuters in an interview.
"Lack of a pro-active stance could have resulted in further financial stress and put pressure on the U.S. triple-A rating," Chambers said. "There's no God-given gift of a AAA rating, and the U.S. has to earn it like everyone else."
also: TED to 304. Not tasty.