The good and bad news
The bad news is the U.S. credit rating was recently downgraded by Standard and Poor’s. In essence, that rating agency said the soundness of our government’s finances is more risky than that of nations like England, France, Canada and Australia. The good news is that, directly in the wake of the downgrade, money poured into U.S. Treasury bonds from all over the world. Why? Because world financial institutions — particularly in Europe — are under pressure and investors, in spite of the downgrade, still think the U.S. government-backed securities are the safest of safe havens.