On August 5th 2011, Standard & Poors announced to downgrade American credit rank from the highest AAA to AA+, which caused world wide economic turmoil. This is the first time that U.S.A, the superpower country, was downgraded over recent centuries on credit rank.

This degradation not only reflects the problem onU.S.economy, but also on the improper political policies taken by federal government.Video 1: America Downgraded

On the similar situation, Greek credit rating was downgraded from A- to BBB+ by World top three credit rating agency on December 18th 2009, which initiated European debit crisis.Video 2: Greece Crisis 

Now world’s two largest economic entities are facing serious problem on the financial problem and government policies. Another world wide financial crisis is probably going to happen in other days, which can be told from the sluggish stock market.

It will also affect Asian market in which most developing economic entities are located. The developing markets attract more international investment into the economy, but with these unstable factors these rising economic entities are also facing huge financial uncertainty.