Monday, August 1, 2011

Governments Welcome Debt Deal, Still Worry About Ratings

Wayne Cole

Japan and Germany welcomed news of an 11th-hour deal to avoid a U.S. government default on Monday, but officials in both countries said Washington must do more to deal with its huge debt burden and the threat of a cut in its credit ratings.
Japan, second to China as America's biggest creditor, joined other countries and investors in praising the deal but said it hoped the United States would take additional steps to stabilize its finances and head off the threat of a downgrade.
"If you look at the currency market, we're not seeing a rapid decline in the yen as a result," Deputy Finance Minister Fumihiko Igarashi said of the deal, which buoyed the dollar and share markets but left many investors and economists relieved but unimpressed and also left Washington's political credibility under question . . . . . . .

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