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U.S. Credit Rating Downgraded: Wake-Up Call or More Political Theater?

Moody’s just joined S&P and Fitch in downgrading the U.S. Is this a sign of what’s coming—or just D.C. dysfunction on display?

For the first time in history, all three major credit rating agencies agree: the United States no longer deserves a top-tier credit rating.

Moody’s just cut America’s rating from AAA to AA1, citing unsustainable debt, rising interest costs, and political gridlock.

So is this a genuine fiscal warning—something everyday Americans and investors need to act on? Or is it just more political theater in a dysfunctional Washington?

We break down what this downgrade really means, why it could be the start of something bigger, and how smart investors are positioning themselves right now.

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Scott Bessent on Moody’s Downgrade: “It’s Already Priced In”
Senator Kennedy "We've got to pass this bill or taxes are going to go up."

Trump to Walmart: ‘Eat the Tariffs’

On May 17, 2025, President Donald Trump ignited a political and economic firestorm by publicly rebuking Walmart on Truth Social. His message was clear: the retail giant should absorb the costs of his administration’s tariffs rather than passing them on to consumers. This confrontation has spotlighted the tensions between government trade policies and corporate pricing strategies, raising questions about the broader implications for the U.S. economy.

Spencer Rascoff co-founded Zillow, scaling it to a $16B valuation. But everyday investors couldn't invest until the IPO, missing early gains.

"I wish we had done a round accessible to retail investors prior to Zillow's IPO," Rascoff later said. Now he's fixing that with his new real estate company Pacaso, and unlike Zillow, you can invest while Pacaso is private. Firms like SoftBank are already on board.

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Know what you own, and know why you own it.

-Peter Lynch

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