US CREDIT DOWNGRADED !!!!!

[carol ann parisi]

U.S. Credit Downgraded April 6, 2012

Credit rating agency Egan Jones downgraded the United States' credit rating to AA on Thursday due to serious concerns over growing federal debt. In his report regarding this downgrade, managing Director Sean Egan wrote: "When debt-to-GDP exceeds 100 percent, a country's financial flexibility becomes increasingly strained... For the first time since World War II, U.S. debt exceeds 100 percent." The ratings agency continues to have a negative outlook for the U.S., stating there is a 1.2% probability the U.S. would default in the next year. A disappointing jobs report on Friday suggests the economic recovery is losing momentum. U.S. employers added 120,000 nonfarm jobs last month, 50% below the jobs added in February and analysts' expectations. Friday's Labor Department jobs report also revealed that employers had shortened the work week and cut back on temporary workers, signs of weakening job market. Kevin Giddis, fixed-income strategist at Morgan Keegan & Co., wrote "[The jobs report] likely means that QE3 [a third round of quantitative easing] is alive and about to be implemented..." The U.S. stock market is closed today for the Good Friday holiday but U.S. stock futures fell along with the dollar. The U.S. precious metals spot market is also closed today.