MERGED - U.S. loses AAA Credit Rating - S&P downgrade to AA+

[R.Zaragoza]

NEW YORK | Fri Aug 5, 2011 8:20pm EDT

(Reuters) - The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday, in a dramatic reversal of fortune for the world's largest economy.

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits.

U.S. Treasuries, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the UK, Germany, France or Canada.

The outlook on the new U.S. credit rating is negative, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months.

U.S. loses AAA credit rating from S&P | Reuters

[Exotix]

*Breaking*

Now at AA+

Obama Admin says Amatuer Hour at S & P ...


US government loses triple-A credit rating.
S&P had warned government of action; US debt now rated lower than European countries'


http://www.msnbc.msn.com/id/44040574...credit-rating/



The United States lost its top-notch AAA credit rating from Standard & Poor's Friday, in a dramatic reversal of fortune for the world's largest economy.

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits.

U.S. Treasuries, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the United Kingdom, Germany, France or Canada.

The outlook on the new U.S. credit rating is negative, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months.



U.S. government officials had been bracing for a downgrade.

CNBC's John Harwood reported that S&P told the federal government at 1:30 p.m. ET Friday that it was preparing to downgrade the country's rating. But Harwood reported that after U.S. officials pointed out an error in how S&P computed the ratio of U.S. debt to the gross domestic product, S&P decided to reconsider.



A source said S&P's calculations were off by "trillions," CNBC reported.


The earlier reports said the main reasons likely to be cited for a U.S. downgrade by S&P included political confusion surrounding the process of hiking the debt limit and doubt that agreement would be reached on more deficit reductions.

On July 14, S&P put the government on a credit watch with negative implications, meaning there was at least a one in two chance the U.S.’s long-term debt would be downgraded within 90 days.

After Congress reached a deal this week on budget cuts valued at about $2.1 trillion over 10 years, the other two main rating agencies reaffirmed the nation's top credit rating status for now although said they would continue to evaluate the situation. S&P never issued a comment. still has not commented.

Moody's assigned a negative outlook for U.S. sovereign debt, meaning it could still downgrade the securities, although probably not anytime soon. Moody's said there would be a risk of downgrade if there is "a weakening in fiscal discipline, a deterioration in the economic outlook or if Congress fails to adopt more deficit-reduction measures in 2013.



Another major agency, Fitch, said it would complete its review of the nation's sovereign debt rating by the end of August and did not rule out a downgrade.

Standard & Poor's had warned that the nation's credit rating would be subject to a downgrade without a credible deficit-reduction package worth $4 trillion over 10 years. The package agreed to by congressional negotiators falls well short of that mark.

A downgrade could result in higher market interest rates and could force some fund managers to sell Treasury securities. But it is unclear what the result would be if only one of the major agencies issued a downgrade.

The rating agencies have been under fire since the financial meltdown of 2008 because they often gave high ratings to bundles of mortgage-related securities that were risky and ultimately failed.

Reuters and CNBC contributed to this report.

[mrvette]

AND SO, compared to the rest of the commie bastards we are GOLDEN still....


what I think?? shock the hell outta the banker families, and ....

REPUDIATE THE DEBT!!! grab the gold, issue new currency....


eff 'em forever....

[mrvette]

Same as I replied in the other thread,....

REPUDIATE the debt, grab the gold and issue new currency....

[Exotix]

Originally Posted by mrvette

grab the Fort Knox gold and give it to the American people.

[R.Zaragoza]

[Exotix]

Originally Posted by R.Zaragoza

Sorry dude I came in seconds before you ... so you get a cute 'lil dupe thing too ...

[Exotix]

https://www.thevettebarn.com/forums/p...it-rating.html

[mrvette]

SOME/most gold is in Ft. Knox and elsewhere,

by FEDERAL edict we can grab/steal/nationalize all the gold ingots in bank vaults on our shores....that shit goes NOwhere....

wipe the computers clean, and eff em all forever....


especially the banks.....

issue new currency....

backed by gold....

declare there are NO more debts owed by anyone in America...NONE...

not even for that new TV....nothing,

your name on title, or possession, you got it...

eff' em' forever....

[Exotix]

Originally Posted by mrvette

SOME/most gold is in Ft. Knox and elsewhere,

by FEDERAL edict we can grab/steal/nationalize all the gold ingots in bank vaults on our shores....that shit goes NOwhere....

wipe the computers clean, and eff em all forever....


especially the banks.....

issue new currency....

backed by gold....

declare there are NO more debts owed by anyone in America...NONE...

not even for that new TV....nothing,

your name on title, or possession, you got it...

eff' em' forever....

You need a *Goldeneye* Petya Satellite

[Exotix]

*UPDATE*

CNBC's John Harwood reported that S&P told the federal government at 1:30 p.m. ET Friday that it was preparing to downgrade the country's rating.

But Harwood reported that after U.S. officials pointed out an error in how S&P computed the ratio of U.S. debt to the gross domestic product, S&P decided to reconsider.

A source said S&P's calculations were off by "trillions," CNBC reported.

A source familiar with the discussions said that the Obama administration believes S&P's analysis contained "deep and fundamental flaws."



The rating agencies have been under fire since the financial meltdown of 2008 because they often gave high ratings to bundles of mortgage-related securities that were risky and ultimately failed.

[Peter Pan]

We have a spending problem and the deficit reduction deal was a fuc$king joke and well deserved

[Will]

Originally Posted by Exotix

Sorry dude I came in seconds before you

Apparently not. Merged both threads. Automatically orders posts by time from first to last.

[Exotix]

S & P Statement

http://www.ft.com/intl/cms/af2c4fac-...144feabdc0.pdf


S & P Official appearing last night ...


Republicans were quick to highlight the downgrade – the first since S&P awarded AAA status to the US in 1941 – as a humiliation for President Obama.

But S&P's statement [PDF] explaining the move blamed both parties for the US fiscal mess – and had harsh words for the Republican party for ruling out any taxes increases.



"We have changed our assumption ... because the majority of Republicans in Congress continue to resist any measure that would raise revenues," S&P said.



S&P also said the budget savings agreed by Congress at the start of the week were too feeble, and blamed political weakness and instability for triggering the downgrade:

"More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon."

The credit rating agency also said the outlook on its long-term rating was negative, warning that it could lower the long-term further rating to AA within the next two years "if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume".

[Exotix]

Let's hear how this affects the pensioners ...

http://www.msnbc.msn.com/id/26315908/#44042232

[6spdC6]

More of the GREAT legacy this POS POTUS is going to leave behind!

I can see it now as a game show question in the future. BONG: you now have 5 seconds to name the president that presided over the countries credit rating getting lowered. Clue he was a one timer, name him clock is ticking tic tic tic!

Let see him blame Bush for this debacle!

[Exotix]

Originally Posted by 6spdC6

More of the GREAT legacy this POS POTUS is going to leave behind!

I can see it now as a game show question in the future. BONG: you now have 5 seconds to name the president that presided over the countries credit rating getting lowered. Clue he was a one timer, name him clock is ticking tic tic tic!

Let see him blame Bush for this debacle!

You're missing the point ... you see, the S & P sates :

"We have changed our assumption ... because the majority of Republicans in Congress continue to resist any measure that would raise revenues," S&P said.


This is how Obama wanted it stated behind closed-doors as the *compromise* with S & P ...

This is because the GOP/Tea Party have dismissed themselves from cause & effect & blame from Bushs' legacy .. the holocaust Great Depression president who is single-handedly responsible for the greatest transferrance of wealth from a nation in all the history of mankind ...

You got to admire Obamas' wisdom in this regard especially going into 2012 when the wacko GOP nominee can do nothing but burp, fart and pick his nose and butt hoping this distracts you ..

[6spdC6]

Originally Posted by Exotix

You're missing the point ... you see, the S & P sates :

"We have changed our assumption ... because the majority of Republicans in Congress continue to resist any measure that would raise revenues," S&P said.


This is how Obama wanted it stated behind closed-doors as the *compromise* with S & P ...

This is because the GOP/Tea Party have dismissed themselves from cause & effect & blame from Bushs' legacy .. the holocaust Great Depression president who is single-handedly responsible for the greatest transferrance of wealth from a nation in all the history of mankind ...

You got to admire Obamas' wisdom in this regard especially going into 2012 when the wacko GOP nominee can do nothing but burp, fart and pick his nose and butt hoping this distracts you ..

No your missing the point spin it any way your liberal heart desires ASSHOLE oBUMa was POTUS during this debacle. In other words it was on his watch! “Let it be written let it be so” Rameses, Pharaoh of Egypt a long time ago

if the MSM was anywhere near fair the truth would be forthcoming. The way those bozos operate if an asteroid hit the earth and did tremendous damage it would be the tea parties fault.

PS waiting to see what happens with Moody’s!

[Exotix]

Originally Posted by 6spdC6

No your missing the point spin it any way your liberal heart desires ASSHOLE oBUMa was POTUS during this debacle. In other words it was on his watch! “Let it be written let it be so” Rameses, Pharaoh of Egypt a long time ago

if the MSM was anywhere near fair the truth would be forthcoming. The way those bozos operate if an asteroid hit the earth and did tremendous damage it would be the tea parties fault.

PS waiting to see what happens with Moody’s!

Well this is your weakness like all of your fanatical buddies when debating and having a discussion with you ... you're crazies.

[6spdC6]

Originally Posted by Exotix

Well this is your weakness like all of your fanatical buddies when debating and having a discussion with you ... you're crazies.

Wow that really convinces me. Was Rkhegler a teacher of yours?