The S&P ratings agency today downgraded U.S. sovereign debt from AAA (the highest) to AA+. The decrease was due to the agency’s assessment that the inability of the government to rein in spending or increase revenues had put the long-term prospects for debt repayment at risk. The other two major ratings agencies have not yet downgraded American debt, so S&P’s action is not expected to have a severe effect on the bond market.
In other news, Muslims in Sumatra celebrated the start of Ramadan by burning down two protestant churches. Meanwhile, a mosque teacher in Lancashire has pleaded guilty to four counts of assault for hitting some of his pupils with a length of plastic piping. The mosque has a “no hitting” policy.
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