By Stephen Stirling
A trio of business experts at Queens College said last week the U.S. economy remains the model for the rest of the world, but cautioned that the economic crisis facing the nation should give fiscal leaders meaningful pause.
The panel, which convened at the school’s final business breakfast forum of the school year, primarily discussed fears that the United States’ sovereign credit rating could be lowered from AAA status, removing it from an elite group of the globe’s leading lenders.
“The prospect of the U.S. losing its triple−A status was unheard of until recently,” said Queens College economics professor Diane Coogan−Pushner.
Only about 20 nations in the world have a sovereign credit rating of AAA, and Evan Russo, managing director of corporate finance at Lazard Freres and a Queens College graduate , said even the possibility of the United States being devalued signals a major moment for the global economy.
“Five years ago, I would have said this would be a great theoretical discussion,” Russo said. “So it’s just the question itself that’s really important here.”
David Levey, a former senior sovereign analyst for Moody’s Investors, said ultimately he does not believe the U.S. rating will be changed despite the poor economy “simply because of the absence of any real alternatives.”
“If we had a deep enough shock that would threaten the U.S. triple−A rating, the rest of the world would likely be below it already,” Levey said.
He pointed out that even China, often discussed as a major up−and−coming economic power, is still miles away from usurping the United States’ authority as the global economic standard.
“It’s going to take enormous institutional changes if China is ever going to be considered a true global player,” he said.
The forum was part of a series of monthly business breakfasts put on by the college, which have often featured prominent Queens businessmen and women giving talks on economic issues.
Reach reporter Stephen Stirling by e−mail at sstirling@cnglocal.com or by phone at 718−229−0300, Ext. 138.
