After the stock markets closed, S&P downgraded the credit rating of the U.S. government. In a press release, S&P explained why they took that action.
“The fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics,” said S&P.
“The effectiveness, stability, and predictability of American policymaking and political institutions have weakened,” said S&P.
Actually, it wasn’t any better before.