Welcome to See King Alpha's Wall Street Breakfast, where we cover the top news for investors every morning.

Thanks for joining us today. I'm Julie Morgan, host of Wall Street Breakfast. This is our weekly show all about the catalysts for the upcoming week.

I'm joined by Kim Khan. He's the senior managing news editor at Seeking Alpha. He's also the host of our new afternoon show, Wall Street Lunch.

This week, the big news, of course, outside of earnings was the downgrading of the U.S.

long-term credit rating.

Wall Street really did not like that. No they didn't, although if you look at people trying to come up with

explanations on why Wall Street didn't like it, that's a little tougher question. We've got people saying it's a big deal,

people saying it's no big deal, but the market thought was a big deal anyway.

There's got people saying it was a stupid idea. People like Jamie Diamond, Warren Buffett is said today, don't worry about it. It's got nothing to do with the market really. And so just a lot of people trying to come to grips with it. I will say that this looks more like the market sold off not because of the downgrade, because S&P did it in 2011. Fitch has finally come

around to doing it based on their metrics and it didn't seem like it was that big a deal

immediately when we got the news from it.

So it's more like there was a trigger and the market was looking to sell off for some high valuation

stocks that it's always looking for and so it comes with an excuse.

Another argument that I've read is that it came in tandem with the US Treasury issuing its funding

requirements for August and saying in the Treasury auctions are going to be higher than the market was expecting

adding $19 billion in new cash and that those fundings would be increasing in the future.

So it's saying so that U.S. is going to actually have a little more trouble with its debt.

That's what Fitzgerald was pointing at. So maybe both of those together led for this big sell-off, but we're a pretty high-levels anyway.

One thing I read from Society Gener's FX strategist Kit Jukes that was pretty good, I thought, on target,

you know, he says, far wiser people than he have said it's bizarre and surprising, but he said if you look at the metrics Fitch uses and given the debt ceiling and fight and the

jumping US debt levels it looks simply overdue and he points out that now the only G7 economy

fits rates is triple A is Germany and it's got a debt level half that of the US and if you look at the US debt to GDP level it's almost identical with that's

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