The Shock Downgrade of the U.S. Economy

Last week, Fitch downgraded U.S. Government debt from a AAA rating to AA+. But what does this mean for the economy, and what do macroeconomic powerhouses Jamie Dimon (CEO of JP Morgan) and Ray Dalio (founder of Bridgewater Associates) have to say about this?

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★ ★ CONTENTS ★ ★
0:00 Fitch Downgrades U.S. Debt
1:09 What are Credit Ratings Agencies?
2:35 Why the U.S. Got Downgraded
6:15 Ray Dalio Explains The Big Problem
7:12 Jamie Dimon Explains the Downgrade
9:48 Jamie Dimon's View on the Debt Ceiling
11:10 The Reputation of Credit Ratings Agencies

DISCLAIMER:
Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.

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[NewMoneyYouTube]

Thanks for watching guys! What are you guys thinking about the U.S. economy right now? Solid as ever, or shaky?

[godsonfreed]

Don't let fear hold you back from achieving your financial goals. Educate yourself, embrace calculated risks, and build a portfolio that stands the test of time.

[mikecole]

I feel you trivialized the points Fitch makes. These are REAL issues that need to be addressed. If nothing is done, eventually the dominos WILL fall. No country is/has been invincible.

[donaldwayne]

The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market precisely when the news is most negative and investor sentiment reaches its lowest point

[TheBlackMage]

I completely agree with Fitch. I hope it puts some pressure on the USA to evaluate their long term problems.

[Luciusyosef]

We had the bear market last year. Things were pretty bad. 9% inflation, war began in Ukraine, Gas prices up big, FED at the beginning of raising interest rates. With all that we only had a minor bear market. Things are better now. FED is close to the end of rate hikes, low unemployment, inflation coming down, yet still a lot of gloom and doom which is contrarian. We've been in a bull market since Dec. I went all in last Oct. pretty close to the bottom. I don't think we will get another bear market this close to the last one. Am in the QQQ and am up 16.5% for the year right now. I think the long term trend is bullish. We will soon be in an election year too, which is usually bullish. However I do think we will get a correction pretty soon. It may have already started. But it's pretty hard to trade those. You have to get the sell just right and the buy back just right. I'm tempted to try to catch it. Oct is coming up too. No one can predict the market. But my best guess is long term bullish short term bearish until January. Maybe I should sell half. Not sure yet. I'm just an ordinary investor. Most of my money is in real estate. If I sell all my stock where do I put the cash? I Just buy and just trade long term more than ever, I have made over 14btc from day trading with Jacob Kucia Signal in few weeks, would advise y'all to trade your asset rather than hold for a future you aren't sure about.

[jackcarlos]

If Jamie Dimon says everything is fine then I'm sure we're all going to be ok. He hasn't tanked the economy before while saying everything is fine, right?

[spacecaptain]

“The American military enterprise system” 😂. he means American Imperialism

[andreaisonline]

Ray Dalio possesses an exceptional depth of understanding when it comes to economics, while Jamie Dimon is a reckless and avaricious banker that doesn’t even care about the issue in spending more than earning.

[connorferguson]

I feel the suggestion from Jamie Dimon to remove the debt ceiling to be completely irresponsible, if you make a machine (or an economic machine) and its starts tripping the safety. Taking the safetys off will def stop it from tripping but it also stop another thing, preventing accidents.

[fdadrtrttewrt]

Jamie Dimon has a financial interest in being a cheerleader. The U.S. is doing well but it doesn't matter if you are spending more then you make. The rating is important because it shows that things are deteriorating politically.

[DeclanCC]

Jamie has a stake in making sure this current system of debt based money survives as it is his sole source of income. Take note that this monetary system isn't something that has been around for long, debt based currency is still only 52 years old. Birthed by Richard Nixon's administration when they docoupled the US dollar from gold reserve. It would not be suprising if it is uprooted by another system in our life time when the time to pay comes.

[andreypak]

people do not know, but these ratings are used in the valuation of credit derivatives, for example, CDSs. Since the rating decreased the premiums to cover insurance in case of government bonds defaults became higher.

[lexluong]

Your right about rating agencies. They have been too slow to down grade the US ponzi scheme.

The reserve currency being the privelege of one country is over.

Hard assets can't be conjured up. There is a fair exchange of value is needed to create them unlike US 1/0/1s.

[efrain]

I am 30 seconds in, where you have finished highlighting a few of the reasons why the got downgraded, and those criticism, that while 100% valid, are so harsh, I am suprised they only got the smallest most minor of bumps down in credit rating. If you were to say that about any company you would think they would be on the risk of bankruptcy. Which I guess the US is with its issue of the debt ceiling coming up every so often.

[Key-nqcq]

"The riveting world of credit ratings" 🤣🤣🤣

[seallopez]

Everything is starting to look like pre-2008 times

[blessingpaul]

I began investing at the age of 33, primarily utilizing my hard work and dedication. Now at the age of 38, I am delighted to share that my passive income exceeded $100k for the first time in a single month. This advice is truly valuable, so don't hesitate to take action. Remember, it's not about achieving wealth quickly, but rather about building wealth consistently and persistently.

[investerendoejezo]

I see some big red flags when I listened to the answers of Jamie Dimon. Yes he has some good points. The other prosperous countries should spend more on military security from the US. However the massive Debt could be the reason for maybe the biggest market crash ever and maybe even the end of our financial system/capitalism in general. I don’t want to risk that. It looks to me that Jamie knows that there is a huge problem but he does not want to believe it and so he is closing his eyes for it. I hope I am wrong but this could be a huge problem somewhere in the coming years or decades

[antoniosoria]

US debt interest is now surpassing the Department of Defense budget. The GDP growth is slower that the growth of federal spending. This trend is not sustainable for a healthy posterity, social and financially. Our clueless politicians need to address or our progeny will have miserable life. Also, when is Jamie Diamond a fan of Modern Monetary Theory? I know JP Morgan Chase is a bank but at sometime making profits should take second priority to the long term financial health of a nation’s future.