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US May Lose Its 'AAA' Rating

CNBC.com
Monday, 10 Nov 2008 | 7:49 AM ET

The United States may be on course to lose its 'AAA' rating due to the large amount of debt it has accumulated, according to Martin Hennecke, senior manager of private clients at Tyche.

Get Back into China Stocks - with Caution
China's economic package, which involves a bold infrastructure program, is the marking of a turning point for the global economy, according to Stephen Pope from Cantor Fitzgerald Europe. On the back of the announcement, Martin Hennecke from Tyche thinks investors should get back into China stocks.

"The U.S. might really have to look at a default on the bankruptcy reorganization of the present financial system" and the bankruptcy of the government is not out of the realm of possibility, Hennecke said.

"In the United States there is already a funding crisis, and they will have to sell a lot more bonds next year to fund the bailout packages that have already been signed off," Hennecke told CNBC.

In order to solve or stem the economic slowdown, Hennecke suggested the US would have to radically reduce spending across all sectors and recall all its troops from around the world.

As for a stimulus package, there is not much of an industry left to stimulate back into life, Hennecke said.

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