"The United States’ prized top AAA credit rating has been cut for the first time ever. Standard & Poor’s has dropped America’s ranking to AA+. The destructive force is the crippling debt which Congress has struggled to agree on how to tackle, with only an 11th-hour deal to raise the amount allowed. S&P says that’s not enough - and falls far short of what’s needed to stabilize the government’s runaway borrowing. But the Obama administration says the analysis is way off, and will damage any recovery."
"In the past week alone 2.5 trillion dollars have been wiped off the value of global stocks. That is why world leaders and policy makers have been scrambling over the weekend, trying to find a way out of the turmoil on the international markets caused by the debt crises in Europe and the United States."
"Conflicting and confused messages from Europe’s policy makers have raised concerns that next week may worsen the eurozone debt crisis. Fresh worries over Europe’s bailout mechanisms this week hastened fears of another recession and saw stocks suffer their heaviest losses since 2008."
"European finance ministers have expressed confidence in the US economy, in spite of the country’s credit rating being downgraded for the first time in history. However, China - which holds the vast majority of US debt - is far from happy. Leaders there have criticised what they called Washington’s "addiction" to debt. "