SP warn of downgrade if no deficit reduction

H

Horn6721

Hook'em
From reuters link
"If an agreement is reached to raise the debt ceiling but nothing meaningful is done in terms of deficit reduction, the U.S. would likely have its rating cut to the AA category, S&P said.

"While banks and broker-dealers wouldn't likely suffer any immediate ratings downgrades, we would downgrade the debt of Fannie Mae, Freddie Mac, the 'AAA' rated Federal Home Loan Banks, and the 'AAA' rated Federal Farm Credit System Banks to correspond with the U.S. sovereign rating," S&P said in its report.

"We would also lower the ratings on 'AAA' rated U.S. insurance groups, as per our criteria that correlates insurers' and sovereigns' ratings," the firm said."The Link

I think the can is at the end of the road
 
paso
I don't know. were they?
and if they were do you think this warning coupled with all the other warnings mean nothing

and we have no worries about our economy and policies the congress and Obama will create?
 
Yep. The same idiots that didn't downgrade somewhat confusing securities are willing to downgrade govt debt. That ought to tell you something paso. But, keep believing there's nothing at all to see here.
 
S&P was completely full of **** about the value of toxic mortgages, but now they are the voice of financial reason when they fit your political or policy views?

I think the US debt is an issue that needs to be addressed (especially Medicare), but it is hardly some existential crisis. S&P is run by the same Wall Street clowns who stole billions in the bailout that led, in part, to this sudden "crisis" over debt.

But pay no attention to the man behind the curtain ...
 
I'm not political when it comes to the economy. I believe the debt ceiling must be increased simultaneous with immediate deep spending cuts including deeper defense cuts that most conservatives would be comfortable with. I believe TARP saved the economy from collapse.

I also believe Obama is playing silly politics and is completely ignorant of the economic consequences.

The ratings agencies are not wall streeters in the sense you are asserting. They have been wall street rejects historically. But, given their culpability in the '08 financial crisis, don't you think they'd be on their toes right about now?
 
And yet the US is supposedly giving money to the UN for humanitarian missions abroad and we continue to spend hundreds of billions on military campaigns overseas.

It use to be that countries couldnt fight wars when they ran out of money. We have solved that problem. We have no money but still do whatever the hell we want. Paper currency and limitless debt. Aint it grand? And who loses out? The taxpayers.
 
More nonsense from so-called "experts" that will undoubtedly be quoted mindlessly by Obama's sheep. No one has made a reasonable argument linking the debt limit to defaulting on bond holders. There are numerous other government programs and entitlements that would get cut first which is a very good thing. S&P is a joke.
 
I don't get why people don't think we are a credit risk. Of course, if we keep increasing our debt there is an increased likelihood that we won't be able to pay our bills.
 
I did not support TARP and I do not like the idea of raising the debt ceiling but I can see how it might be necessary for the immediate future. And whether you put any faith in rating companies like S&P, or to a lesser extent Moody, how can anyone look at the countries financial trend over the past 15 years and think that we are stable? The last 3 administrations, at least, have acted like a teenager with a parent's credit card.
 
Then why weren't you kicking and screaming about the tax cut extension in December?

This really is simple. If debt was a big issue that threatened the fiscal stability of the Republic (which I think is silly, but this is pretty clearly the crap that is being shoveled by one side), then why wasn't this even mentioned in December of 2009 when the tax cut extension was an issue?

You get your tax cut extension and then suddenly the debt threatens to topple the Republic? I certainly see a wizard pulling some levers behind that big curtain.
 
S&P was completely full of **** about the value of toxic mortgages, but now they are the voice of financial reason when they fit your political or policy views?
__________________________________________________

yet you have no problem quoting the cbo when you know good and well that their analysis is based upon incomplete data?
 
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