Thread: S&P tells White House it will downgrade U.S. rating

S&P tells White House it will downgrade U.S. rating – This Just In - CNN.com Blogs

served notice earlier this afternoon; currently reconsidering as per CNN.

It was just downgraded to AA-Plus.

Originally Posted by donsutherland1

It was just downgraded to AA-Plus.

So now AA plus is the new AAA. Big deal.

Investors worldwide still flock to the US dollar when the **** hits the fan. That being said, is this finally enough to make the left realize Obama is ****ing up pretty bad? I don't care how bad they say Bush was, halfway through the Obama presidency our debt rating is downgraded for the first time in history.

Can Obama finally be blamed for this mess? If not Obama, the ****ing dem shyt congress he has to work with?

Originally Posted by dontworrybehappy

So now AA plus is the new AAA. Big deal.

Investors worldwide still flock to the US dollar when the **** hits the fan. That being said, is this finally enough to make the left realize Obama is ****ing up pretty bad? I don't care how bad they say Bush was, halfway through the Obama presidency our debt rating is downgraded for the first time in history.

Can Obama finally be blamed for this mess? If not Obama, the ****ing dem shyt congress he has to work with?

I was actually hoping this would be enough for people to realize deciding who to blame isn't enough anymore. Guess that was pretty naive of me, yes Obama and the Congress deserve some blame for this, so do all Americans as well, after all there's a personal debt crisis still in this country and after all we elected these people. So while you may want to "throw the bums out" if people just elect new bums nothing is going to change, time to be solution driven not blame driven when it comes to our voting.

To my knowledge this should be a significant event.

As some investments are only allowed to carry AAA rated investments, this depending on how the restrictions are written (which rating agencies and how many have to have the AAA rating still) could lead to a dumping of US government debt by private investors who will be scrambling to find AAA rated investments

Couple of thoughts here.

1) This was a strategic decision. S&P knew they were gonna do this days ago, and whether via advice from various people and perhaps some pressure from the White House, they've announced it today to give everyone the weekend to cool down.

2) Lord Tammerlains assessment is spot on, we'll see a massive dumping of US debt on monday.

3) Blame isn't nearly as important as solutions, there's still time to fix this, we can spend all year playing partisan games, leaving it til the presidential elections... leaving it til the next mid terms... leaving it to the next presidential elections... but until you as a people speak with once voice, instead of partisan voices of what you want, then there is no hope. You can't have it all. You think people have been hurting the last couple of years, you ain't seen nothing yet.

It's simply not enough to just cut spending.

A combination of:

Responsible Government

Effective reform of Entitlements to curb their unsustainable trajectory

Raising of Taxes on those who can afford them

Cutting spending

Swift prosecution of these matters are the ideal solution.

I have no idea why anyone still listens to the rating agencies anyway. The crash proved they have no idea what they are doing. If this in any way shape or form stops us from adding more debt, I'll be good with it though.

it's time to put Americans back to work building things. if large spending cuts are part of the equation, then increased revenue from employed people paying taxes is, as well. we won't get out of this hole without that revenue. give Americans the opportunity to work, participate in the economy, and participate as taxpayers.

the real price of "cheap" goods is becoming more and more apparent.

Originally Posted by 1Perry

I have no idea why anyone still listens to the rating agencies anyway. The crash proved they have no idea what they are doing. If this in any way shape or form stops us from adding more debt, I'll be good with it though.

The lowering in Credit Rating means that your interest payments will go up, meaning you will pay more in the end. Had an effective solution been reached on the debt crisis, even with a massive cut in spending that may have even been harmful in some ways, you could have kept the credit rating and allowed the interest on your debt payments to stay as low as possible.

Originally Posted by Helix

it's time to put Americans back to work building things. if large spending cuts are part of the equation, then increased revenue from employed people paying taxes is, as well. we won't get out of this hole without that revenue. give Americans the opportunity to work, participate in the economy, and participate as taxpayers.

All makes for a great campaign slogan but here's another question.

How are you going to make this happen?

Originally Posted by 1Perry

I have no idea why anyone still listens to the rating agencies anyway. The crash proved they have no idea what they are doing. If this in any way shape or form stops us from adding more debt, I'll be good with it though.

The problem is that according to the empirical research, the ratings agencies are typically too slow to downgrade, not too fast.