Unfortunately, President Obama’s oratory gifts couldn’t turn things around. He finally commented on the S&P downgrade that has sent markets reeling, saying the U.S. is still a “triple-A country” and that the nation is “still a safe bet for investors.” But with the statement’s focus on deficits rather than jobs, Washington Post columnist Jena McGregor gives the speech the thumbs down. Business Insider goes a step further, calling the statement “disastrous.”
Governments around the world had already chimed in with their two cents (we’ll take it!), the S&P has come out to defend its decision, businessmen from Warren Buffet to Donald Trump (who called the S&P out for pulling a publicity stunt!) have criticized the downgrade, and Congress members were all over the TV yesterday placing blame squarely on the other side of the aisle.
With all the focus now on the ratings system and the AAA label, CNN highlights the four U.S. companies that still have it, even as the nation doesn’t. Automatic Data Processing, Exxon Mobil, Johnson & Johnson, and Microsoft are the “Final Four” and the outlet gives a number of reasons why they still hang on to the esteemed rating, including the fact that the U.S. dollar still has AAA liquidity. (How can that make sense?)
It was always great to have the AAA, but it must be solid gold to investors now. (S&P gold futures were up over $1,700 today, BTW.) We’re confident the IR teams at these companies will be talking up this message point ASAP.