Rating agencydowngradeS U.S. credit rating to AA+

[flabbybody]

It is not a material issue. To everyone institution around the world we are already AA+. Nothing is going to change and the smart money is staying domestic. So what if cost of borrowing goes up 60bps.... life goes on. I'm just glad the S&P had some balls.

S&P, Moodys, Fitch... they're all a fucking joke. They had an AAA rating on Lehman up until the weekend the poor slobs were clearing out their desks. The credit rating industry is a scam. The United States downgrade is a total non event.
The economy is certainly in the shit, but we don't need these overpaid assholes to tell us that.

[Jackal]

OK, so Standard and Poors has gone ahead with the threatened downgrade. It’s a strange situation.

On one hand, there is a case to be made that the madness of the right has made America a fundamentally unsound nation. And yes, it is the madness of the right: if not for the extremism of anti-tax Republicans, we would have no trouble reaching an agreement that would ensure long-run solvency.

On the other hand, it’s hard to think of anyone less qualified to pass judgment on America than the rating agencies. The people who rated subprime-backed securities are now declaring that they are the judges of fiscal policy? Really?

http://krugman.blogs.nytimes.com/201...p-and-the-usa/

[russtafa]

so when are you guys having a garage sale =every thing must go , cheap ,cheap

[AmyDaly]

From S&P's press release regarding the credit rating:

Compared with previous projections, our revised base case scenario now
assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012,
remain in place. We have changed our assumption on this because the majority
of Republicans in Congress continue to resist any measure that would raise
revenues, a position we believe Congress reinforced by passing the act.



You can thank the bush tax cuts and the republicans

[MrsKellyPierce]

From S&P's press release regarding the credit rating:

Compared with previous projections, our revised base case scenario now
assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012,
remain in place. We have changed our assumption on this because the majority
of Republicans in Congress continue to resist any measure that would raise
revenues, a position we believe Congress reinforced by passing the act.



You can thank the bush tax cuts and the republicans

Oh no now all the Republicans are going to get you Amy lol

But you know they will twist and say Obama had his chance to get rid of it - he chose to extend it blah blah

[BellaBellucci]

This whole left/right dichotomy is false. There's only might/right. Ron Paul 2012.

~BB~

[Merkurie]

When the world market dropped this week, the market in US treasuries went up. People around the world flocked to by US debt because it is still the most secure investment in the world.

The worst thing that could have happened to confidence in US treasuries is not the S&P rating or the size of the national debt -- it is playing political games with the debt ceiling.

The Tea Baggers made a toy out of the debt ceiling and Obama let them get away with it.

[russtafa]

Aussie can buy one of your states at a bargain basement prices

[dbev]

It's all a big con from the usual bankers...

By the way, aren't this the same agencies telling everyone that Lehman Brothers and Parmalat were a great investement just the day before they went bankrupt?

Please be serious...

[gaffer]

The idea that the US Government is not the best possible credit for dollar-denominated debt is ridiculous, as market rates prove. The best place for "flight to quality" is still the dollar. Investors are now going as short as possible (cash) because of rational concerns that interest rates are heading up. But cash is simply very short-term US Government credit.