Tax Pros Investors: U.S. To Lose Triple-A (AAA) Credit Rating (Part 2)

Worries about credit rating prompt vow to cut deficit

Concerns that the credit rating of government debt might be downgraded prompted a slump in Treasuries, U.S. stocks and the dollar, as well as a pledge from Treasury Secretary Timothy Geithner to reduce the budget deficit. "It's very important that this Congress and this president put in place policies that will bring those deficits down to a sustainable level over the medium term," Geithner said.

Video: Bloomberg

U.S. to see credit rating downgrade in a few years, Gross says: Bill Gross, co-chief investment officer of Pimco, said the country will face a credit rating downgrade in "three to four years, if that, but the market will recognize the problems before the rating services -- just like it did today." Gross e-mailed Reuters saying Thursday's market declines could be attributed to investor concerns that the U.S. is "going the way of the U.K. -- losing triple-A rating, which affects all financial assets and the dollar." Reuters

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