I see an economic diasater coming...

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What happened after theS&P downgrade?Read on   http://transamericaretirementmanagement.com/PDFs/TFA_Montoya_Commentary.pdf
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China’s comments. The world’s largest holder of U.S. debt issued a withering critique of Congress through
Xinhua, its official news agency. The state commentary stressed that the U.S. has a “debt addiction” only curable
via major cuts to defense spending and entitlement programs. It also said that the option of a “new, stable and
secured global reserve currency” should be explored.
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The Treasury’s claim. Friday evening, the Treasury argued that S&P’s analysis contained an accounting error that
unnecessarily added $2 trillion to its projection of U.S. debt. S&P admitted the error but stuck with the downgrade.

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Wall Street might sail through this. Does that sound far-fetched? Look at some historical examples. S&P
downgraded Canada’s AAA credit rating in the spring of 1993, yet Canadian stocks gained 15% in 1994 and our
northern neighbor had its AAA rating back by 1997. Moody’s Investors Service downgraded Japan in November
1998 and its stock market advanced more than 25% in the next 12 months. Italy, Canada, Ireland, Japan, Belgium
and Spain have all suffered S&P downgrades from AAA, and most of these cuts had little sustained impact on
government bond yields.
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Are mortgage rates going to go north? Maybe; maybe not. Rates on conventional mortgages have a direct
relationship with 10-year Treasury yields. Recently, those yields have dramatically fallen, and demand for longerterm Treasury notes has been palpable. Interest rates on auto loans might see a spike, as those rates are pegged
to 2-year notes and factors like the LIBOR rate. The hardest hit might come from credit card issuers. Credit card
interest rates reflect the prime rate. Credit.com credit card advisor Beverly Blair Harzog told CNNMoney that she
believed credit card firms could possibly jack up rates 1-5% as a result of jitters over the downgrade.
Note that credit card rates could go up!!

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People are real suckers for credit card companies.I am so sorry that they exist at all!I used them for years but wised up to their true costs and had to get them out of my life forever!triffid