Egan Jones just dropped the Friday afternoon hammer on the US again, downgrading the US for the 2nd time in as many years, from AA to AA-.
Egan Jones states the reason for the downgrade is Thursday’s QE3 announcement, which the firm states will ‘hurt the US economy and, by extension, credit quality….the increased cost of commodities will pressure profitability of businesses, and increase the costs of consumers thereby reducing consumer purchasing power. Hence, in our opinion QE3 will be detrimental to credit quality for the US‘.
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