KEVIN O'LEARY: There is no way to sugarcoat this at all. It's bad. And I'll tell you how you measure it's bad. Basically, when you downgrade the U.S. economy, which is what this downgrading is, you are losing a little faith in the U.S. dollar and the U.S. Treasury bill because the default currency of the world, defined by every commodity priced by U.S. dollars, is the good faith of the U.S. government and the whole world. Trust it. Most sovereign funds keep the majority of their liquidity in U.S. dollars.
That got hurt 24 hours ago because now you start to ask yourself, well, where is this going? A downgrade from AAA to AA, does it go to single? Now, if you're a sovereign wealth fund, you start to put that in your mind. And the bottom line for you and me is the cost of capital goes up. In other words, what it costs for us to borrow money to fund the government and deficit goes up. No sugarcoating that.