Of course, a further downgrade could have serious consequences – ratcheting up risk, driving up interest rates, and potentially causing investors to dump Treasury bonds.
We’re not there yet, and the best way to avoid it is for Washington to take measures to solve the debt crisis – and boost confidence, says Saboori.
“The ultimate solution becomes a political decision,” he says. “Both Congress and the president must convince people that things are back to normal. We need a psychological injection of hope to return to normal spending and investment.”
