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Senior Advisor

Down grade

Will Harry Reid get serious about some cuts now?

 

snip-

Standard & Poor’s announced Friday night that it has downgraded the sterling U.S. credit rating for the first time.

The move came even though the Treasury Department said that it had found a math error in the firm’s calculations of deficit projections, according to a person familiar with the matter.

S&P decided to lower the AAA rating, held by the United States for 70 years, to AA+ after a bipartisan debt deal signed into law this week failed to assuage concerns about the nation’s growing spending

 

http://www.washingtonpost.com/business/economy/sandp-considering-first-downgrade-of-us-credit-rating...

37 Replies
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Honored Advisor

Re: Down grade

I`m sure it will be some how spun to be the Tea Party`s fault even though the Dow crash and the down grade happened AFTER they got their precious debt ceiling raise.  Definitely sets the stage for QE3.  Bottomline : Democrats should have agreed to more spending cuts, not the measely $200 billion a yr that was passed  Woo-Hoo! now the deficit will only be $1.4 Trillion.  It`s like Ole and Lars having a job hauling hay and losing 50¢ a bale.  Ole sez "Lars, ve need to haul more hay to make money, looks like ve need a bigger truck!".   

Highlighted
Advisor

Re: Down grade

Bruce will love what krugman says about it.

Highlighted
Senior Contributor

Re name the president

OBAMA DEBT LADEN.

Senior Contributor

Re: Down grade

Just proves how partisan and out of touch you people are with reality. The majority of the American people know who's to blame, and it won't be the President or the Democrats! This is all on the tp/gop's plate. Take your rose colored Repbulican glasses off.

 

You guys take the cake! What bunch of maroons!

Highlighted
Senior Advisor

Re: Down grade

Perhaps its a different reason than you think.  This was the first time in history that a significant portion of congress thought it was ok to default on our obligations. I wouldn't loan you any money if you were considering defaulting on what you already owe.

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Senior Contributor

Re: Down grade

It was Bush's fault. Man do you guys know that! Smiley Surprised

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Senior Advisor

Re: Down grade

Mr. Kraft, the reason S & P gave was government spending. There are not enough rich to tax to begin to put a dent in the national debt. If spending is not brought under control there is no possible way for the US government to avoid default.

Highlighted
Honored Advisor

Re: Down grade

Don, those holding US debt were at NO time at risk of not getting paid their nearly nonexsistant interest, there is enough revenues coming in for that.  If anything you seasoned citizens talking about "Why do we have to pay the Chinaman on the backs of social security ??" that is what spooked `em.  When Barry Obama took over the National debt was $10.4 Trillion, in 3 years Barry and the Dems added over $4 TRILLION!! The Dems DID control BOTH houses and the White House, you know.  In my opinion, Standard and Poor should have took the US rating down to a "A" rating the minute the Nat debt hit $10 Trillion when Bush was in, that would have brought attention to the inevitable.  The debt to GDP ratio under Bush was somewhat managable, under Barry any way you cut it our debt/GDP is 100%!!!! no coming back from that.  Would the last one to leave, please turn out the lights? 

Highlighted
Senior Contributor

Re: Down grade

Since you probably didn't read Hawken's link for more than one reason, here is a snip;

 

"The outlook on the long-term rating is negative. We could lower the
long-term 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 in our base case."

 

 

Remember kraft, spending is the problem not revenue.