FBN’s Charlie Gasparino reports that while the battle continues in Washington on how to prevent the United States from being downgraded from a AAA to a AA credit rating, Wall Street traders are saying it is “much ado about nothing.” Gasparino said traders “hold the rating agencies in very low regard” and while there “there may be some short term impact” if the U.S. were downgraded, long term, “it isn’t that big of a deal.” Excerpts from the report can be found below, courtesy of Fox Business Network.
On whether traders are anticipating a volatile market as the possibility of the U.S. credit rating being downgraded looms:
“People that rate bonds are telling me this is much ado about nothing. They are brushing off the notion of default. They put the notion of default at zero. They are saying our U.S. sovereign debt is much safer than other nations. They also say if there is any impact, there may be some short term impact, long term if we go from a AAA to a AA, it isn’t that big of a deal. Traders are also saying they hold the rating agencies in very low regard. For what reason? They missed every financial crisis; why would they get this one right?”