The US government is in the process of learning one of the key lessons of the debtor.
The Creditor calls the tune.
The Chinese who hold trillions of dollars in US are not happy, and they are not afraid to let the US know that they need to shape up and fly right. Let’s hope that this credit downgrade is treated as a wake-up call, and the US uses the opportunity to get their fiscal house in order.
But don’t count on it.
The disfunctional houses of congress are too busy stabbing each other in the back in a pointless and self defeating series of internecine battles.
If the US doesn’t sort this out, expect more dire consequences in the future.
In the meantime, use this dip in the Dow to snap up any high quality blue chips while they are on sale. Just make sure you go for quality, look for income in the form of dividends to tide you over until the markets recover.