Should you care that S&P cuts U.S. credit rating?

 

From what I am reading, S&P’s recent downgrade of the U.S. debt from AAA to AA+ will not lead to higher interest rates…yet. Instead, it is a slap in the politicians’ face.

The S&P lowered the credit rating of the U.S. government debt from AAA to AA+.  This decision appears to be based more on the issues of the Democrats and Republicans being unable to agree on how they should service their debt obligations and less about the U.S. government’s ability to repay its debt. 

What will the S&P downgrade do to housing and the real estate market?  Should we even care about this issue?  This article on Forbes website provides a great explanation.  View article here.