Bond Valuation Essay Example for Free

Bond Valuation EssayDiscuss the impact of Standard sufferings downgrading the U.S. credit rating in 2011. Address current and likely future impact on U.S. business, individuals, the global economy and current financial practices. proffer specific examples to support your response. The impact of Standard Poors downgrading the U.S. credit rating in 2011 shows us as consumers and investors that we should keep watch on every aspects of the governments spending. A persistent crisis of confidence in the stock market could put the economy in a tailspin. The impact it would pay back on current U.S. business, individual global economy and current financial practices in nothing new that this country does not already know or should have seen in the past several years. Businesses have either gone belly-up or merged with another company to provided what was left.An example of this is the health feel for system where a small privately owned practice is unable to carry on with the dema nds of running its own business and in order to save his business they are able to sign under a local hospital entity and continue on as usual not feeling overmuch of the effects outside of possible changes in company policies and who is now actually paying the bills. The individuals effected is such a rating are those trying to set up a goal of retirement or credit building on their own and is forced to dig into their own savings in order to turn ends meet due to the increasing tax demands taking what was once available to them.Globally this impact could result in outside investors not willing to purpose already past amounts for the U.S. and further loans and cause the U.S. to grab what little the smaller businesses, families, and financial institutions are able to squeeze and cause more unemployed, closed companies and a downfall of the presumption that the U.S. is the country where dreams are madeof course all this wont happen overnight but if things do not change, this is wh at we could be facing.