S P AAA Bond Rating Drops to AA+

WorsterMan

WorsterMan

10,000+ Posts
OK Obama... uhh, hey professor this is serious. The US has never been below AAA. You better get away from the birthday celebration and get back to some serious work of fixing the economy.

Riddle me this:

You will smugly say: This was unfortunate, GWB & his admin.caused this, you inherited this whole situation, it was the result of the Tea Party.

Never mention how the Dems ovrsite of Fannie Mae & Freddie Mac had huge role in where we are today or that GD Chris Dodds and GD Barney Frank are still "reforming" them & protecting them.

Don't mention how the Dem controlled Congress has not introduced a budget (balanced or unbalanced) as required, the last 2-3 years when they were in control.

Unemployment... odd how it has remained subbordonily at 9%+ when you promiseb below 8% and all thse "shovel ready jobs" that never materialized... you later "haw-hawd, were not as shovel ready as you thought they would be".

Don't mention how you have shown NO leadership during this crisis and only responded when it helped your campaign for 2012.

You are a failure and will be voted out of office as you deserve to be in 2012.

Flame away....
 
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Here is what happen when S&P downgraded Japan in 2002. See the huge impact?
 
Meh... all "political"..... no, some was but the serious "stuff" was not.

AA+ on HIS watch.

Don't let any reality & facts get in your way dude. Defend the man if you don't like what I said.

You may not like S&P but this is reality folks. The interest rate just went up for my clients (and you) on home mortgages, credit cards, loans and other debt.
 
For all those claiming the Tea party was holding the economy hostage, it appears the hostage takers did not go far enough in their demands. Note the S&P report specifically mentions the spending cuts are not enough, but hey it's all politcal, right?

From the S&P report:

"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."

Interesting that they mentioned spending problems as opposed to anything about raising taxes.
 
I hope this helps the average American voter understand how excessive deficit spending by the government will tangibly effect them.
 
"I don't think it is political as much as it is S&P having an inflated sense self importance. "

Those making these decisions have a great deal to gain by encouraging regime change.
 
A math error according to the WH source. I'll hold my breath waiting to see how this turns out.

Two options here- 1) the math in the model deciding to downgrade US debt, a truly historic action by S&P, was not checked about a thousand times or so, or 2) a hyper-political WH that is clinging to its life and is in full spin mode is making an outright falsehood or stretching the truth.

Occam's razor suggests the answer to me, but I guess we'll find out. My money is on the 2 trillion dollar "mathematical error" being S&P's refusal to buy certain WH projections, but I'll come on here and acknowledge if I am wrong and it was truly a mathematical error. I'm sure you will do the same if you are wrong, right paso?
 
Gotta agree with what you are saying WorsterMan. Barney Frank and Chris Dodd had mucho to do with the mortgage mess. Then throw in that bunch of self serving, derivative designing bunch from Goldman Sux who also now decorate O'bama's cabinet. They helped accelerate the mortgage disaster. But then look what that crew did to "help out"
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the country of Greece.

In any case this is just not good news at all and has become clearly our NATIONAL NUMBER ONE PROBLEM. We pay these college educated idiots (politicians) six figure salaries and they in turn around squander and waste our money by the truckloads and tell us we need more even though we are taxed 40 to 50% OF EVERYTHING WE EARN. ABSOLUTELY PREPOSTEROUS

It is high time to shut down all these stupid wars we have been fighting, tighten down our boarders and stop wasting another single cent. And then start working down this huge debt problem to a more manageable level. Its to bad our elected leaders for the most part have never run a small business and just do not know how to make a P&L sheet work out.

Hey Pelozzi-- Do you still think you need a new airplane??

LEAVE SOCIAL SECURITY ALONE. If you are independently wealthy, then by all means voluntarily stop recieving it to help out the system.

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Unlike you parkerco, I posted a link to a source. The source might be wrong, but given that the source is the WSJ, not exactly a friend of the White House and Obama, I think the odds of it being correct are a bit more than 50%.

Do I think S&P could have made a $2 trillion error? They certainly did with the mortgage market, why not again?
 
So, Boehner walking out on the $4 Trillion Debt Reduction and then the House passing a useless piece of **** legislation for a ******* Constitutional Amendment has no impact on how Washington is viewed? I think not.

Hook'em!!!
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69, please. Did you see the deal that Boehner supposedly walked out on?

Did the tooth fairy show it to you?

We had a hell of an opportunity to move on Cut Cap and Balance and truly take some action on the deficit. The Dems killed it.
 
paso-
Like i said we'll know soon enough. If it is truly a 2 trillion math error we'll have some actual confirmation. In fact this WH will be trumpeting that fact to high heaven for the next week along with flow charts and actual analysis of where S&P multiplied instead of divided. In that case I'll come on here and eat crow.

If, on the other hand, there is no mathematical error, as you assert, I'm sure you will do the same. It's OK, you can still think Obama is the best thing since sliced bread and defend him to the limits of logic, you'll just have to admit there was no actual math error.

For the purpose of our little exercise, please note that S&P failing to buy White House projections is not a math error.

WH- but we said we were going to cut 2 trillion from some future undefined entitlements in 2018.

S&P- nice try, I'm not buying it.

WH- No honestly, we will.

S&P- where?

WH- we'll figure it out later.

S&P- no inclusion of the 2 trillion until you show me exactly where it is coming from and how.

WH- math error!!!
 
Why would I eat crow for citing a source? The WSJ might be wrong, but I would not be because I did not make any independent claim of knowledge. I am also not sure if we will ever know because neither side will give more details.
 
The whole federal gvt is so F'd up. STOP SPENDING MORE THAN YOU TAKE IN!!!!!

It's not hard. The US should really be put on B- or worse since we wont be able to get anything figured out because of all the "sacred" cows like medicare/medicade, social security, obama care, etc.

CUT gvt spending by 20-30% right now! in every single area.
Pass a balanced budget ammendment NOW.
Reducing taxes or easing constraints on biz like off shore drilling, etc would spur some growth.
 
The rating should be dropped based on fiscal policy since Bush took office and the lack of political will to now do anything real about it. Entitlement cuts were on the negotiation table and in the end even the Republicans and their tea party members opted not to take that deal. Why? B/c the President also wanted to remove some subsidies that would ultimately increase some taxes. You would think the tea party would be against subsidies but actually they are just anti Obama. The rating was dropped not so much based on what deal was passed though, but based on how the S&P subjectively felt that the US was handling the issue and how they just didn't think with the current state of politics that there would be a real plan put in place to fix this issue. I would have to agree.

Many on here rail on the US for how it handles its books. They don't run the country like it is a business. So no suprise here that now some credit rating agencies might downgrade the US. And it isn't due to Obama solely. It is due to policies that have been in place since 01 and due to the current political environment that just isn't getting the job done.
 
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