https://www.fitchratings.com/research/sovereigns/fitch-downgrades-united-states-long-term-ratings-to-aa-from-aaa-outlook-stable-01-08-2023
In: 4
If you’re considered risky to lend money to, lenders will charge you higher interest rates to compensate for the risk.
This can lead to a kind of death spiral, because paying higher interest rates only increases the chances of you defaulting on a loan.
(AA+ isn’t *that* bad though, so we probably don’t all need to panic.)
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