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    2 Replies Latest reply on Aug 10, 2011 11:16 AM by JackieGold

    How will the S&P Credit Downgrade Affect Small Businesses?

    JackieGold Scout

      The stock markets are going down then up then down again.... it seems like catastrophe is firing off across the world .... what does the S&P credit downgrade mean in light of all this chaos?


      And what impact is it going to have on small businesses? And consumers?


      I think that if we don't implement higher taxation (on the rich) soon, we are going to be taking our country and economy down a very unpleasant path very quickly....


      here is an article I wrote on it (it's objective, don't worry):

        • Re: How will the S&P Credit Downgrade Affect Small Businesses?
          LUCKIEST Guide

            Let’s highlight the most significant issues:


          • The market has dropped 12% from its high in April and is down about 4 1/2% for the year.  While disconcerting as this is – it is neither unprecedented nor unexpected – we have known that volatility in the markets will be high as the global economy struggles to gain solid footing.  While Friday’s job report in the US was more positive than expected, we need to see real growth of jobs to dampen the uncertainty.
          • S&P downgraded US debt for the first time ever despite all the political wrangling over a deal to raise the debt ceiling last week.  The fundamental distress this rating will cause for our economy is probably limited but it does give all pause and concern for when the elected officials in Washington will stop the nonsense and get to work on helping our country emerge from the current market malaise.
          • The Euro Zone debt crisis continues to weigh heavily on global markets. The European Central Bank is getting more aggressive and Italy accelerated steps in its austerity program in order for the ECB to buy their bonds.  This can help alleviate some aspects of the Euro sovereign debt crisis but much work there still needs to be done.