1. BROKE

    U.S. Loses AAA Credit Rating

    President Barack Obama speaks about efforts to prepare veterans for the workforce, Friday, Aug. 5, 2011, at the Washington Navy Yard in Washington.  (AP Photo/Carolyn Kaster)

    Carolyn Kaster / AP Photo

    For the first time in 70 years, the United States lost its top-notch credit rating from Standard & Poor’s as the agency knocked U.S. debt down a notch from AAA to AA-plus. The downgrade followed a dramatic back-and-forth Friday afternoon with the Treasury department after administration officials discovered S&P had miscalculated the federal deficit by $2 trillion. The administration hoped the error might stave off a downgrade, but the agency announced it anyway Friday night. U.S. credit is now ranked alongside European nations like the U.K. and France. S&P said the outlook for U.S. debt is negative, and that it could be up for another downgrade in 12-18 months.

    Read it at Reuters