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Hold on…this is NOT crisis time. The downgrade was signaled three months ago when S&P declared its long-term outlook on U.S. debt as “negative,” and the financial markets have known for a long time that the U.S. financial house was not in top condition.

So, what supports the minimal effect on banks of a downgrade by (and I quote) “the self-evident declarations of a highly fallible, largely discredited and severely weakened ratings agency”?

Read Neil Weinberg’s August 8 online report for OnWallStreet. His reasoning makes sense; how well the nation tackles the problem will be the determining factor.