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Thread: United States loses its AAA Credit rating from S & P

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    United States loses its AAA Credit rating from S & P

    The United States had just lost its AAA credit rating from S&P, and they have announced that another downgrade may be coming within the next 12/18 months.

    The debt ceiling scenario was the chief source of market angst in the last few months, and the GOP was wrong to use it as leverage to achieve some of the things they were demanding. Now the whole country will feel the negative effects. Will others follow S&P?

    United States loses AAA credit rating from S & P
    NEW YORK | Fri Aug 5, 2011 8:19pm EDT
    Aug 5 (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. (Reporting by Walter Brandimarte; Editing by Jan Paschal)


    United States loses AAA credit rating from S&P | Reuters
    Last edited by Redress; 08-24-11 at 04:37 PM.



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    Re: United States loses its AAA Credit rating from S & P

    I just turned to the news....

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    Re: United States loses its AAA Credit rating from S & P

    Quote Originally Posted by SheWolf View Post
    I just turned to the news....
    Geez, I wonder how long it will be before most of us start feeling the effects of this downgrade?

    It sure doesn't look good - and I'm thinking conservatives think they are going to be able to pin this on Obama!



    "I have been thinking that I would make a proposition to my Republican friends... that if they will stop telling lies about the Democrats, we will stop telling the truth about them."
    --Adlai Stevenson, Politician





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    Re: United States loses its AAA Credit rating from S & P

    Quote Originally Posted by mertex View Post
    Geez, I wonder how long it will be before most of us start feeling the effects of this downgrade?

    It sure doesn't look good - and I'm thinking conservatives think they are going to be able to pin this on Obama!
    Can you please stop with the stupid political comments for just a moment. This is a problem but if only one ratings agency has the guts to make this cut it should have minimal effects.

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    Re: United States loses its AAA Credit rating from S & P

    They lowered it because congress didnt go far enough to shore up its finances. This is 100% on the fault of the Tea Party and Republicans. They needed to raise taxes on the wealthy and didnt. Now we have this!!!!!!!!!!!
    CORPORATE GREED AND UNION GREED
    DEMOCRATS AND REPUBLICANS
    DESTROYING THE BEST OF AMERICA ONE DAY AT A TIME

    This is the worst kind of discrimination. The kind against ME! ~ Bender

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    Re: United States loses its AAA Credit rating from S & P

    The political dysfunctionality that was displayed in abundance ahead of the debt ceiling agreement played a role in the downgrade. In part, S&P declared:

    ...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.


    Standard & Poor's Downgrades US Credit Rating From AAA to AA+ - ABC News

    Aside from political dysfunctionality, the long-term sustainable growth rate is probably lower than the 3% figure that has been cited widely on account of a variety of structural issues. If, in fact, that is the case, then tax revenues will grow more slowly than anticipated over the medium-term and beyond, making it even more difficult for the nation to address its long-term imbalances.

    Finally, IMO, the U.S. would do well to conclude a credible fiscal consolidation agreement over the next year, preferably prior to the election. If that doesn't happen, S&P will likely carry through with another downgrade. Once downgrades begin to occur, the pace of such downgrades can accelerate if meaningful progress toward addressing fiscal imbalances isn't demonstrated. Ratings downgrades can increase interest rates, making the fiscal challenges even greater. Hence, a vicious self-reinforcing cycle can take hold.
    Last edited by donsutherland1; 08-05-11 at 10:13 PM.

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    Re: United States loses its AAA Credit rating from S & P

    Quote Originally Posted by The Giant Noodle View Post
    They lowered it because congress didnt go far enough to shore up its finances. This is 100% on the fault of the Tea Party and Republicans. They needed to raise taxes on the wealthy and didnt. Now we have this!!!!!!!!!!!
    To bad there is no way to only include comments on a topic as important as this from folks who have even a limited amount of economic sense.

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    Re: United States loses its AAA Credit rating from S & P

    Quote Originally Posted by washunut View Post
    To bad there is no way to only include comments on a topic as important as this from folks who have even a limited amount of economic sense.
    So this that why you didnt say anything useful?
    CORPORATE GREED AND UNION GREED
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    DESTROYING THE BEST OF AMERICA ONE DAY AT A TIME

    This is the worst kind of discrimination. The kind against ME! ~ Bender

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    Re: United States loses its AAA Credit rating from S & P

    Quote Originally Posted by mertex View Post
    Geez, I wonder how long it will be before most of us start feeling the effects of this downgrade?

    It sure doesn't look good - and I'm thinking conservatives think they are going to be able to pin this on Obama!
    It's the weekend, and CNN stopped covering the story... The news report was short and not very informative. Is anybody still covering the story?

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    Re: United States loses its AAA Credit rating from S & P

    Coverage is on Fox.

    It's reached the point that our government is so dysfunction, that S&P had to step in and tell them to get their **** together. Pathetic Washington, just pathetic.

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