Submitted by KBMNEGA
Guest Post by Simon Black
Another day, another downgrade for America. Today it’s Moody’s Investor Service, one of the three major credit rating agencies alongside Fitch and S&P.
Last week Fitch downgraded the sovereign debt rating for the United States of America. And late yesterday, Moody’s downgraded the ratings of several US banks.
The implication? The seismic activity that we saw in the banking sector back in March isn’t over. This is no surprise for our readers– we’ve talked about the ongoing risks in US banks several times since then.
The bottom line is very simple: higher interest rates are bad for banks… and it’s easy to understand why:
Continue reading “Another day, another downgrade for America. Today it’s the banking sector”
