Standard and Poors has now dowgraded the debt on 11 major financial instutitions, including Bank of America, Deutsche Bank, JP Morgan, Morgan Stanley, Wells Fargo, and Goldman Sachs. And to think that JP Morgan, Bank of America, and Wells Fargo were touted as the strong ones that could rescue some of the others! Ouch!
Even more bad (debt) news. Jumbo prime loan instruments are also now being downgraded too as default rates are rising rapidly. This is ominously frightening in that it portends the likelihood of a flood of new mortgage defaults and foreclosures on the homes of America's wealthy borrowers.
