Bond Valuation Essay Example for Free

Bond Valuation seekDiscuss the impact of Standard Poors d featuregrading the U.S. credit rating in 2011. Address real and likely future impact on U.S. business, individuals, the global economy and reliable financial practices. Provide unique(predicate) examples to support your response. The impact of Standard Poors downgrading the U.S. credit rating in 2011 shows us as consumers and investors that we should keep watch on all aspects of the governments 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 departed belly-up or merged with another company to save what was left.An example of this is the health care strategy where a small privately owned practice is unable to carry on with the demand s 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 construction on their own and is forced to dig into their own savings in order to make ends fitting 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 smallish the smaller businesses, families, and financial institutions are able to squeeze and cause more unemployed, closed companies and a ruin of the presumption that the U.S. is the country where dreams are madeof course all this wont happen long but if things do not change, this is what we could be facing.