Bond Valuation Essay Example for Free

Bond Valuation Essay Discuss the impact of Standard Poor’s downgrading the U.S. credit rating in 2011. Address current and likely future impact on U.S. business, individuals, the global economy and current financial practices. Provide specific examples to support your response. The impact of Standard Poor’s downgrading the U.S. credit rating in 2011 shows us as consumers and investors that we should keep watch on all aspects of the government’s spending. A persistent crisis of confidence in the stock market could put the economy in a tailspin. The impact it would have on current U.S. business, individual global economy and current financial practices in nothing new that this country does not already know or should have seen in the past several years. Businesses have either gone belly-up or merged with another company to save what was left. An example of this is the health care system where a small privately owned practice is unable to carry on with the demands of running its own business and in order to save his business they are able to sign under a local hospital entity and continue on as usual not feeling much of the effects outside of possible changes in company policies and who is now actually paying the bills. The individuals effected is such a rating are those trying to establish a goal of retirement or credit building on their own and is forced to dig into their own savings in order to make ends meet due to the increasing tax demands taking what was once available to them. Globally this impact could result in outside investors not willing to extent already past amounts for the U.S. and further loans and cause the U.S. to grab what little the smaller businesses, families, and financial institutions are able to squeeze and cause more unemployed, closed companies and a downfall of the presumption that the U.S. is the country where dreams are made†¦Ã¢â‚¬ ¦of course all this won’t happen overnight but if things do not change, this is what we could be facing.