The Wall Street JournalThe Wall Street Journal

America’s fiscal time bomb ticks even louder

By Spencer Jakab

02 Aug 2023 · 3 min read

informed Summary

  1. Fitch’s downgrade of the U.S. debt rating only caused a flutter on the financial markets, but fiscal strains will soon get harder to ignore, Spencer Jakab argues in the WSJ.

“Everybody who reads the newspaper knows that the United States has a very serious long-term fiscal problem.”

That wasn’t a quote by some financial talking head in the aftermath of Fitch’s downgrade of America’s credit rating on Tuesday. It was a reaction by then Chairman of the Federal Reserve Ben Bernanke the last time a major rating agency took that action back in August 2011. Investors could google hundreds of such warnings over the decades and conclude that the hand-wringing is best ignored or even viewed as a buying opportunity.

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