They Downgraded the Nation's Debt. So What?

08/03/23 • 22 min

Trading Perspectives: An Economic Podcast

This week, the Fitch Rating organization downgraded U.S. Treasury debt from its highest rating of AAA to AA+. But what did it accomplish? Is the U.S. Treasury market no longer the world’s most liquid? Is the U.S. dollar no longer the world’s primary reserve currency? Did the U.S. financial system suddenly become more opaque? Is the U.S. Treasury in danger of defaulting on its debt? Or is the bigger issue Washington’s inefficiency in spending money that it will eventually have to repay? Further, does anyone really want the Congress to tighten the purse strings in a meaningful way?

In this week’s Trading Perspectives, Sam and John discuss the probable outcomes of Fitch’s downgrade and what it really means for the US. Perhaps Sam really isn’t as cynical as everyone says. Or maybe he is.

Previous Episode

Barbie Movie Magic?

For much of 2023, commentators have been wondering about the health of the domestic movie industry. Actor and screenwriter strikes aside, a lot of tried-and-true formulas weren’t performing as well as the studios wanted. Was this a change in consumer preferences? Had streaming killed the movies? Or were viewers just bored? Then came along a strange combination of the world’s most famous plastic doll and “the father of the atomic bomb.” Did Barbenheimer save Hollywood?

In this week’s Trading Perspectives, Sam and John discuss changes in the domestic movie industry and come to a not so startling conclusion. If it is unique and interesting enough, people will continue to go to the movies.

Next Episode

The Dog Days of Summer Have Finally Arrived

After a positive July, the dog days of summer have shown up in August. The heat has been oppressive, Fitch downgraded U.S. Treasury debt, Moody’s downgraded the banks and the tech stocks have fallen apart.

Is it time to worry? In this week’s Trading Perspectives, Sam, John and special guest Grace Schlenker discuss why things seem to be boiling over during the hottest time of the year.