World Markets React To U.S. Ratings Downgrade19:16
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Markets and governments around the world are trying to come to terms with the downgrade of U.S. treasury bonds. The bonds have served as the benchmark security for financial markets, and with this first ever downgrade of T-bills, financial markets are entering uncharted waters.

For example, banks and hedge funds commonly offer U.S. treasury bonds as collateral for the short term loans they rely on for day to day operations. Some analysts worry that lenders might now ask for more collateral, driving up operating costs for many businesses.

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This segment aired on August 8, 2011.

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