S&P Cuts US Credit Rating to AA+

[over9five]

Bourbon In Our Bathtub

 

[moreluck]

It's a major "wake-up" call for the W.H. Geitner was asked if Americ'a rating would be downgraded and his answer was "Not a chance." This is part of the naiveness of Obama's appointees................
http://www.foxnews.com/opinion/2011/08/05/sp-downgrade-is-wake-call-for-all-americans/

 

[bbsam]

In fact, the republicans in congress are getting most of the blame, and for good reason. Jobs happens to be the number one problem in the country, not debt. I will never understand why Obama let himself get tied into this debate. Should have stayed off to the side and insisted on a clean bill.

 

[moreluck]

"Every single day under Obama, the nation spends more than $4 billion more than it takes in. Every single day.And what do we have to show for it? How about a shaky economy and political division.
The president continues to believe that massive federal spending will make the lives of most Americans better. But he's wrong."

http://townhall.com/columnists/billoreilly/2011/08/06/its_only_money/page/full/

 

[bbsam]

If you think a republican president would see less division, think again. We are divided and polarized and will be for a good long time. Republicans have shown how to wield the minority power, don't think the democrats are going to forget it.

 

[UpstateNYUPSer(Ret)]

This may just be the wake-up call that our country needs. The downgrade was justified.

 

[bbsam]

This may just be the wake-up call that our country needs. The downgrade was justified.

Not sure if it is justified. It's a rating made in a moment, a moment when the US is still the best bet going. It the new world economy we live in, the US is still AAA and future projected deficits can be partially wiped out by either growth or inflation. Don't know which is going to get here first.

 

[UpstateNYUPSer(Ret)]

Not sure if it is justified. It's a rating made in a moment, a moment when the US is still the best bet going. It the new world economy we live in, the US is still AAA and future projected deficits can be partially wiped out by either growth or inflation. Don't know which is going to get here first.

I think it is justified in that it seemed that everyone but the people involved had a sense of urgency to get a deal done. When the people involved finally got one done it was not nearly the deal that it should have been. I think it is a wake-up call in that the President said this morning that the next step is to get our fiscal house in order.

I hate to do it two days in a row but I have to agree with moreluck. We need to cut spending. We have more than enough revenue.

 

[bbsam]

So if we do as you say and continue to cut spending and unemployment continues to go up, who's to blame then? Saddest part? Had we let the Bush tax cuts expire, debt would have been wiped out in 7 to 10 years. Imagine that. All of us paying 3.5 to 4% in taxes and it all goes away.

 

[UpstateNYUPSer(Ret)]

...and had they combined that with reduced spending we may have ended up with (gasp) a surplus.

My only direct connection with the government was the time I spent in the military. There is a ton of waste in the military but politicians are hesitant to touch the military as many of them have military installations in their jurisdictions. The amount of money spent on paint alone is outrageous.

All of this dysfunctionality has made me an even greater believer in the Fair Tax.

 

[bbsam]

Run the country like you run a business and you will have debt. That's far more realistic than to think of balancing a check book at the kitchen table.

 

[moreluck]

So if we do as you say and continue to cut spending and unemployment continues to go up, who's to blame then? Saddest part? Had we let the Bush tax cuts expire, debt would have been wiped out in 7 to 10 years. Imagine that. All of us paying 3.5 to 4% in taxes and it all goes away.

Yeah, Just like when Obama said he'd cut the deficit in half in his first 2 years. Shoulda, woulda, coulda.........Unless something is enacted, you have no idea what the outcome will be. And you say "all of us" paying taxes........even the 50% who pay nothing right now??

 

[moreluck]

Buffett's take.........

http://www.foxbusiness.com/markets/2011/08/05/buffett-to-fbn-sp-downgrade-doesnt-make-sense/

 

[klein]

The mistake was in agreeing to less than the 4T reduction in ........wait for it......SPENDING.....this is what S&P sighted as the main reason for the downgrade. Yea boy, the republicans are such spend crazy loons. geeez

Wrong ! Tune in to CNN, the head of S & P has spoken : Main reason was not raising the debt ceiling in a timely matter like they have 60-70 times in the past !
(and the disagreement in congress to get anything done) .

 

[klein]

Little Klein One Note........I've told you numerous times before.......you can tax all the rich people 100% and you still won't have enough $$$.
Why can't you get that through your head. The spending is the "sin".

People HAVE TO live within their means. You can't make $200 a week and drive a Bentley!! Maybe the Bentley dealer would try to sell you one, but you've got to be smart enough to know you can't afford it. Gee, that applies to the housing market too !!

The tax cuts to the rich adds up over $1 Trillion, I guess you don't need it.... just charge the little people more interest and it won't pay down the debt at all.

 

[moreluck]

The tax cuts to the rich adds up over $1 Trillion, I guess you don't need it.... just charge the little people more interest and it won't pay down the debt at all.

This is the last time I'm posting this....grab a beer, relax and pay attention to the guy with the year's calendar................http://www.youtube.com/watch?v=661pi6K-8WQ

 

[brett636]

Run the country like you run a business and you will have debt. That's far more realistic than to think of balancing a check book at the kitchen table.

Run a business with debt like our country, and you get GM. Failure is the only logical result.

 

[wkmac]

From the article:

... analysts at Standard & Poor's were looking for $4 trillion in cuts over 10 years. Washington gave them a little more than half of that through gimmickry, untested "committees" and a political sideshow that didn't exactly instill confidence.

I think it was the Republican's that tried to get the 4 trillion and they were blocked by the Democrats.

It was a bad, ugly, childish show by both parties though that did not instill much confidence.

And the worst thing is that the bill they passed will actually increase the debt by over $7 trillion over the next 10 years.

Great point Hoax. Both parties are guilty as hell.

Kevin Carson IMO has a timely piece and don't let the title fool you (in your case Hoax I know it won't) into linear thinking but the last line in the piece sez it all.

Like the poor, the crooks and the crazies will always be with us. That doesn’t mean we have to put them in charge of our lives.

 

[Catatonic]

Wrong ! Tune in to CNN, the head of S & P has spoken : Main reason was not raising the debt ceiling in a timely matter like they have 60-70 times in the past !
(and the disagreement in congress to get anything done) .

You picked one sentence (although I did watch it on CNN and Bloomberg and I don't recall those words).
The actual gist of what he said, other than about 100 "uhs", was that there was no addressing of the structural issue which is debt.
He did not say it was because the government did not decrease spending nor did he say it was because they did not raise taxes (revenue). He said that they did not address the structural issues that is increasing the debt.
He hinted at the two camps have irreconcilable approaches to reining in debt.

Other views from Bloomberg:
The expiration of the Bush tax cuts will help in this equation and the 2012 National election may provide an answer to whether the US Government will have a unified approach or a continuation of the current stalemate.

Other views from CNN:
Matt Damon will march with teachers, America is held hostage, is America broken.

Hoax views:
I tend to watch Bloomberg rather than CNN or Fox when it comes to economic issues. Not much political positioning there and they bring in real experts and experienced business people.

A poor person never created a job ... we need rich people because they create jobs.

 

[klein]

So, you stand among Moreluck and possibly give the rich another $1 Trillion in tax cuts, and then cut Medicare, SS, Education or Military by yet another added Trillion ?