US market fell at close due to the downgrade of Belgium by the 'highly esteemed',not S&P company. European markets have yet to react to this news.
The unfortunate fact is that Belgium is largely in this predicament due to bailing out their banks.
"This modern, open, and private-enterprise-based economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly in the more heavily-populated region of Flanders in the north. With few natural resources, Belgium imports substantial quantities of raw materials and exports a large volume of manufactures, making its economy vulnerable to volatility in world markets, yet also able to benefit from them. Roughly three-quarters of Belgium's trade is with other EU countries, and Belgium has benefited most from its proximity to Germany. In 2010 Belgian GDP grew by 2.1%, the unemployment rate rose slightly, and the government reduced the budget deficit, which had worsened in 2008 and 2009 because of large-scale bail-outs in the financial sector. Belgium's budget deficit decreased from 6% of GDP to 4.1% in 2010, while public debt was just under 100% of GDP. Belgian banks were severely affected by the international financial crisis with three major banks receiving capital injections from the government. An ageing population and rising social expenditures are mid- to long-term challenges to public finances." https://www.cia.gov/library/publications/the-world-factbook/geos/be.html
