Merged Credit downgrade threads

[Dr.House]

How can a Doctor Who fan be such a Twat Waffle??!

I'm not a Doctor Who fan...

How can you be such a Giant Douche?

Well that explains it then! Dr. Douche

That was original...


What else you got?

 

[Full-Auto]

Why hasn't S+P apologized and made it AAA again yet? Are they PUBS who are always right, especially when they're embaraasingly wrong, and LYING? JFChrist!!! Or is this "Weekend at Ronnie's?" This country is officially whacked, after years of Pub lies, idiocy, and catastrophe their gigantic big lie propaganda machine won't even ADMIT to..."Un-American" (Time) A-holes and silly dupes...

Tell us again when the stimulus kicks in?


How about the summer of recovery?

 

[The_GiantNoodle]

I'm not a Doctor Who fan...

How can you be such a Giant Douche?

Well that explains it then! Dr. Douche

That was original...


What else you got?

An autographed photo of Erin Burnett from CNBC. But YOU cant see it. You are undeserving.

 

[Charles_Main]

I can't wait to hear what so-called Republican leaders like McConnell, Boehner and Cantor have to say about this. Will they accept "any" blame - or will they simply point their fingers at Obama?

You think it is all the Republicans fault? Really? how? Do please explain.

Our Rating is being downgraded because the Deal failed to convince them that we understand the Gravity of our problems and have the Political Will to fix them.

Democrats want to pretend there isn't even a problem.

You fucking people who blindly support the Democrats, and Believe the horse shit that only Republicans are to blame, are the most useless ignorant assholes around. Both parties failed us. We needed to couple Raising the Debt Limit with clear signs that we understand we need to get deficits under control, and begin addressing our long term Debt Issues. You simply can not just keep on borrowing over 1 Trillion dollars a year, and not give the lenders some Pause.

Why in the hell would anyone lend us another dime, when we think only adding another 7 Trillion over 10 years, and doing nothing at all about SS, and MC liabilities is good enough. Were on track to owe 21 Trillion dollars, However we will never get there, Because nobody in their right minds is going to keep investing in us when we are so deep in a hole.

Not sure why I am arguing anyways. I am convinced that our political system as is, is in capable of rationally dealing with these issues. When Your leaders care about nothing other than the next election in 2 short years. They will never be able to take the long view, and understand that we can not sustain this, and we can not punt the problem down the road. If we do not get this under control we will be wishing for the days when we were still AA+.

It's do or die time, and I personally have very little faith DC can handle this problem. It will take some time, but the death bells are ringing on the America we know and love. Like every other Power before us. We will Fall to our debt.

 

[NYcarbineer]

We don't have a revenue problem because cutting taxes at the same time your starting wars and increasing social spending has a magic button that turns minus signs into plus signs!!!!!

Rightwing logic.

 

[westwall]

I'm not a Doctor Who fan...

How can you be such a Giant Douche?

Well that explains it then! Dr. Douche

That was original...


What else you got?

Well, obviously he can't have much based on the third grade insults.

 

[Vel]

It's not class warfare you dumbass look at the numbers. Revenue is at 14% of GDP when historically it has been between 17-20%. When the total non defense discretionary budget is only 3% you aren't going to affect the budget without some revenue enhancements.

It is clear to Alan Simpson, it is clear to the Gang of six, it is clear to S&P. It is clear to the whole damm country except the idiots in the tea party most of whom barely have a college education.

Spending is also at 25% GDP
When it has been historically around 20%

We have a spending problem not a tax problem

Gov't is addicted to spending and it appears we just got our first "intervention" by way of S&P

Not according to S&P themselves.


Allow me to repeat myself, with bold red writing.

[...]The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy.

[...]It appears that for now, new revenues have dropped down on the menu of policy options.
[...]The act contains no measures to raise taxes or otherwise enhance revenues,
though the committee could recommend them.

[...]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.

S&P Downgrades U.S. Debt Rating — Press Release - MarketBeat - WSJ

Hmmm.. Looks as if you left a little out when you cherry picked the article..

" It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability."

and...

" Standard & Poor’s takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.’s finances on a sustainable footing."

S&P Downgrades U.S. Debt Rating — Press Release - MarketBeat - WSJ

 

[Sactowndog]

FTR, the vitriolic arguments by people blaming the other side in this thread are a good representation why S&P cut the debt, and why people outside this country are viewing America as dysfunctional. The parties are not interested in solving the debt issue. They are interested first and foremost in establishing their own ideology. Thus, neither side is willing to do what is necessary to get this done. Both sides are to blame, as they would rather pander to their bases and point fingers than accomplish what is necessary.

Generally I would agree but Obama and moderate Democrats were ready to move on Medicare. Unfortunately the Repblicans would not move on revenue. And it wasn't even increases in the marginal rates it was closing loopholes like the Hedge Fund Carry rate.

Had it been reversed, I would have been furious at the Democrats but that isn't the case. In my mind, the Republicans get full blame for this fiasco.

 

[Dr.House]

Well that explains it then! Dr. Douche

That was original...


What else you got?

An autographed photo of Erin Burnett from CNBC. But YOU cant see it. You are undeserving.

It's actually Keith Olberman, isn't it?

Did he sign it "Love, Keith"?

 

[Missourian]

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!!!!!!!!!!!

class warfare ain't going to save your sorry spending other people's money asshole.

It's not class warfare you dumbass look at the numbers. Revenue is at 14% of GDP when historically it has been between 17-20%. When the total non defense discretionary budget is only 3% you aren't going to affect the budget without some revenue enhancements.

It is clear to Alan Simpson, it is clear to the Gang of six, it is clear to S&P. It is clear to the whole damm country except the idiots in the tea party most of whom barely have a college education.

You are not listening.

Show me you are serious about reducing spending.

Cut spending.

Balance a budget.

Show me that the tax increase will go toward paying down the debt.

I'll support that...I'll happily support tax increases on not just the rich but MYSELF that go toward paying down the debt.

After Washington proves their serious.

But I'm not going to give politicians one more blank check to spend frivolously.

 

[Dr.House]

We don't have a revenue problem because cutting taxes at the same time your starting wars and increasing social spending has a magic button that turns minus signs into plus signs!!!!!

Rightwing logic.

Your beef is with the democratics who until very recently, controlled the pursestrings and could have defunded anything overseas...

You didn't care untill January 2011?

lol

 

[Neotrotsky]

We don't have a revenue problem because cutting taxes at the same time your starting wars and increasing social spending has a magic button that turns minus signs into plus signs!!!!!

Rightwing logic.

Now add Medicaid, Medicare and Social Security, and Obama's 2011 budget has a $1.27 trillion deficit. It's the entitlements, stupid.

Nor can you tax your way out of debt. Eliminate all of the Bush tax cuts, including the tax cuts for low- and middle-income Americans, and you would reduce the debt by perhaps 10% — assuming you didn't cripple the economy in the process. Tax the rich? That won't get you there either. In fact, according to the Congressional Budget Office, in order to pay for all currently scheduled federal spending would require raising both the corporate tax rate and top income tax rate from their current 35% to 88%, the current 25% tax rate for middle-income workers to 63%, and the 10% tax bracket for low-income workers to 25%.​

We have a spending problem

 

[hellofromwarsaw]

Sounds like S+P are a bunch of Pub Morons who will have to cancel this BS.

WASHINGTON, Aug. 5 (UPI) -- The bond rating agency Standard & Poor's Friday downgraded U.S. debt from its current triple-A rate to AA+, a move an administration official called "amateur."Citing government officials it did not identify, ABC had reported earlier Friday the administration was preparing for such a move.S&P said the downgrade reflects its opinion that the debt reduction plan Congress enacted "falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.""The effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges," S&P said in announcing its decision.

One federal official told ABC News the downgrade would be based in part on confusion associated with the way Congress handled legislation to raise the limit on federal borrowing and a lack of confidence that further deficit reduction can be achieved under the current U.S. political system.

Citing another source it did not identify, ABC said another reason for the move was be the Republicans' refusal to allow a deficit reduction deal to include new revenues.

However, another government official said the White House had told S&P the company's thinking was "based on flawed math and assumptions." And S&P acknowledged "its numbers are wrong."An administration official told NBC News after the credit rating was lowered, "It's amateur hour at S&P."Treasury Department officials said the S&P announcement came after Treasury pointed out the rating agency, in a draft of its downgrade announcement, overstated U.S. debt by incorrectly adding $2 trillion to its projection of the debt, The New York Times reported.

The effect of the downgrade was a matter of speculation Friday but the Times noted that a small increase in interest rates on borrowed funds could add tens of billions of dollars to the nation's annual debt repayment.There is also a possibility that a downgrade of federal debt could lead to downgrades of other government-backed instruments, possibly leading to higher mortgage interest rates.Rep. Barney Frank, D-Mass.,, the ranking member on the House Financial Services Committee, said on MSNBC the decision was "just a political judgment by a group of incompetents.""This is the rating agency that took money from people who were selling junk bonds and told other people to buy it," Frank said, accusing S&P of overvaluing private debt while consistently undervaluing public debt."They are as responsible for the financial crisis as anybody else."There is zero chance of (the United States) defaulting," Frank said.Moody's Investor Services and Fitch Ratings both said Tuesday they will keep the country's credit rating at triple-A for now, but they said a downgrade is still possible if the U.S. financial situation deteriorates or if promised federal spending cuts don't materialize.The two credit ratings firms issued their assessments after President Barack Obama signed into law compromise legislation passed by Congress to raise the nation's debt limit and cut its budget deficit.© 2011 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification Read more: S&P lowers U.S. credit rating - UPI.com

 

[Neotrotsky]

They do if it benefits them

Even Lenin had his N.E.P.

 

[hellofromwarsaw]

Actually, we have a SECOND Pub Great Depression problem....oh right, never happened- we have to humor the dittoheads...

 

[Full-Auto]

Actually, we have a SECOND Pub Great Depression problem....oh right, never happened- we have to humor the dittoheads...

Its the spending stupid.

But dont let that get in the way of common sense, you wouldnt have anything to support.

 

[hellofromwarsaw]

The Dittohead Party HAS no common sense...BTW, a country is NOT your house, and a poor man never screwed you either...Helloooooo???

 

[KissMy]

CNN: Chinese agency downgrades U.S. credit rating for the 3rd time.

The Dagong Global Credit Rating Company, which lowered the United States to A+ last November after the U.S. Federal Reserve decided to continue loosening its monetary policy, announced a further downgrade to A

German Rating Agency Feri Downgrades US Government Bonds: AAA to AA! | zero hedge

The first Western downgrade of US government bonds is a fact! The German credit rating agency Feri lowered its rating on US debt by a full notch, from AAA to AA.

"The U.S. government has fought the effects of the financial market crisis primarily by an increase in government debt. We do not see that there is sufficient attention being paid to other measures, "said Dr. Tobias Schmidt, CEO of Feri Rating & Research AG. "Our rating system shows a deterioration in economic health, so the downgrading of the credit ratings of U.S. is warranted."

For the third consecutive year the deficit of the United States is in double digit percentages relative to gross domestic product (GDP). "Deficits of such magnitude are not a sustainable fiscal policy. We would reconsider the rating when the U.S. government creates a long-term sustainable budget," said Schmidt. German press release: Feri Downgrades US Gov Debt AAA to AA

Egan-Jones Downgrades US From AAA To AA+ It had nothing to do with the current Debt Limit!!! It was due to the looming 100% Debt to GDP ratio.

Generally we devise modeling calculators and do an analysis that examines the debt load of a country with respect to its GDP and other economic indicators. The analysis is then adjusted to reflect the outlook on a myriad of factors that reflect the firm’s overall view of the sovereign debt and the quality of the country’s ability to meet and thrive under such load. Some of the qualitative factors that impact our ultimate assessment of credit quality such as the flexibility, stability and overall strength of the economy, ease of tax collection, acceptance of contract law, ease of doing business, and prospects for future growth and health. The non quant issues are generally subjective and a moving target, so each rating of a sovereign may differ because of the non-quantitative nuances being addressed.

Moody's lowered its outlook on U.S. debt to "negative." | CNN

Credit rating agency Moody's said Tuesday the United States will keep its sterling AAA credit rating for the time being, but lowered its outlook on U.S. debt to "negative."

A "negative outlook" indicates the possibility that Moody's would downgrade the country's sovereign credit rating within a year or two.

S&P Downgraded US Credit to AA+ | AP

S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. It said such a downgrade, to AA, would occur if the agency sees smaller reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.

"The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics"

Fitch Statement Shows US Downgrade Risk Remains In Play

Fitch said that it “projects that US government debt, including debt incurred by state and local governments as well as the federal government, will reach 100% of GDP by the end of 2012, and will continue to rise over the medium term - a profile that is not consistent with the United States retaining its 'AAA' sovereign rating.”

 

[Full-Auto]

The Dittohead Party HAS no common sense...BTW, a country is NOT your house, and a poor man never screwed you either...Helloooooo???

Dude, Get that PMS checked, they have medication to ease the pain.

 

[Neotrotsky]

They do if it benefits them

Even Lenin had his N.E.P.

yeah...no
dont be a dumbass.