S&P Cuts US Credit Rating to AA+

[moreluck]

Ketchup Kerry is calling it a "Tea Party Downgrade". Terrible misnomer because the Tea Party wanted the $4T cuts just like S&P said must happen to avoid a downgrade.

He's just p.o.'ed and is looking for someone to blame. You don't blame the people who actually wanted the cuts. Blame the ones who didn't want the cuts.

 

[klein]

Here is some info :

If the world now asks the US to pay only 1% more to lend America money (because of the lower credit rating), it will add up to almost 1.5 Trillion in 10 years and wipe out all the cuts and savings in this new budget deal ! - All for nothing !
Got to start a new round right afterwards, since this round will only go towards higher interest on debt re-payment !

To Moreluck above:

Yup, most Tea Party members voted against the deal and wanted a default. Bachmann said it herself openly - let the government default !
But , she was the first one to blame Obama after the downgrade, too - now, that's a hypocrite !

Default on the debt would have made US Treasury bonds look like those Greek Junk Bonds, that pay almost 30% interest in just a 2 year term.
Forget aa+ rating, more like a C- if defaulted !

And I'ld like to see how $4 Trillion it cuts would have went, without cutting most of medicare and SS away !
Maybe you can afford to pay extra, but not all old ladies and gentlemen are so well off as you.

They could have saved 1 Trillion on those tax cuts for the rich - yup , those single and earning over $250K per year, or married and earning over 500K.

But, no, something you and the Tea Party are totally against !

 

[The Other Side]

Here is some info :

If the world now asks the US to pay only 1% more to lend America money (because of the lower credit rating), it will add up to almost 1.5 Trillion in 10 years and wipe out all the cuts and savings in this new budget deal ! - All for nothing !
Got to start a new round right afterwards, since this round will only go towards higher interest on debt re-payment !

They dont understand it Klien. They have to be told by foxed news what to think before they'll believe you.

Peace.

 

[Catatonic]

Here is some info :

If the world now asks the US to pay only 1% more to lend America money (because of the lower credit rating), it will add up to almost 1.5 Trillion in 10 years and wipe out all the cuts and savings in this new budget deal ! - All for nothing !
Got to start a new round right afterwards, since this round will only go towards higher interest on debt re-payment !

COULD happen but that's an assumption on top of another assumption.
More likely effect is a 1/4 % increase which equates to around $300 billion or none at all.
If countries or other entities have money to lend and want to do so, they will get the best they can with the least risk associated with that loan. Within a week or maybe by a month, the effect will be better known.

 

[The Other Side]

Ketchup Kerry is calling it a "Tea Party Downgrade". Terrible misnomer because the Tea Party wanted the $4T cuts just like S&P said must happen to avoid a downgrade.

He's just p.o.'ed and is looking for someone to blame. You don't blame the people who actually wanted the cuts. Blame the ones who didn't want the cuts.

Moreluck,

why is it that you leave out the most important part of the S&P downgrade? Placing blame is easy moreluck, your party is claming 98% responsibility for the deal, S&P wanted to see TAX INCREASES and that wasnt going to happen because the other 2% wanted them.

Instead, by design, the republicans sabotaged our economy by dragging the debt debate too long and settling for 98% of what they wanted. FAIL!

Maybe you understand now?

Peace.

 

[Catatonic]

... S&P wanted to see TAX INCREASES and that wasnt going to happen because the other 2% wanted them.


Peace.

That is something you made up.
The S&P did not say they wanted to raise taxes.

What they actually said is that the US Government appears to be incapable of structural changes and decision-making to control the US debt and ensure continued ability to pay their debt.

This "structural inability" applies to both the Republicans and the Democrats.

You and klein seem to be getting your misinformation from the same place (Rachel Madcow?) as he posted the same thing yesterday and I corrected him too!

 

[klein]

COULD happen but that's an assumption on top of another assumption.
More likely effect is a 1/4 % increase which equates to around $300 billion or none at all.
If countries or other entities have money to lend and want to do so, they will get the best they can with the least risk associated with that loan. Within a week or maybe by a month, the effect will be better known.

You would think they would need to get rid of the negative outlook first (see below) :

Standard & Poor's cut the US rating for the first time in history Friday, by one notch from its top-flight triple-A to AA+, saying US politicians were increasingly unable to manage the country's huge fiscal deficit and debt.

The agency added a negative outlook, warning there was a chance the rating could be downgraded further within two years if progress is not made in balancing the country's lopsided finances.

more here :

US calls for end to bickering after rating downgrade

And btw : Just on the news, head of S&P gives it a chance in 1 of 3 for a further downgrade in that period of time mentioned above !

 

[moreluck]

Nobody knows what will happen Monday.....if they say they know, they are snake oil salesmen. Guesses only cause further worry for some. Obama's not one of them......he's too clueless to worry. It's 'wait & see' time.

 

[Catatonic]

You would think they would need to get rid of the negative outlook first (see below) :

Standard & Poor's cut the US rating for the first time in history Friday, by one notch from its top-flight triple-A to AA+, saying US politicians were increasingly unable to manage the country's huge fiscal deficit and debt.

The agency added a negative outlook, warning there was a chance the rating could be downgraded further within two years if progress is not made in balancing the country's lopsided finances.

US calls for end to bickering after rating downgrade

By the phrase " the effect will be better known", what I meant was that entities like China and other countries that buy US debt don't pay any attention to what S&P rates a borrower. They rely on their on models and when they decide they want to invest funds, they will look at AAA rated France or the AA+ rated US and decide which one to lend money to. My guess is that they will still select the US over France. Time will tell.

 

[klein]

That is something you made up.
The S&P did not say they wanted to raise taxes.

What they actually said is that the US Government appears to be incapable of structural changes and decision-making to control the US debt and ensure continued ability to pay their debt.

This "structural inability" applies to both the Republicans and the Democrats.

You and klein seem to be getting your misinformation from the same place (Rachel Madcow?) as he posted the same thing yesterday and I corrected him too!

S&P stated it as "raising Tax revenue".... I agree..... but what does that really mean ? Instantly find work for the unemployed or raising taxes, or perhaps even Tax reform ? (The later impossible to do with bi-partisan politics and finding no commen ground).

 

[moreluck]

Tax revenue is the money taken in from the folks who pay taxes..........

official definition...Tax revenue is the income that is gained by governments through taxation.

 

[klein]

By the phrase " the effect will be better known", what I meant was that entities like China and other countries that buy US debt don't pay any attention to what S&P rates a borrower. They rely on their on models and when they decide they want to invest funds, they will look at AAA rated France or the AA+ rated US and decide which one to lend money to. My guess is that they will still select the US over France. Time will tell.

Bad guess, because China has already spoken they will diversify away from the US dollar and has even called for the end of the US dollar as the global currency !

Have you forgotten it came within 10 hrs of the US to default !
But, you are right, time will tell - some predicting gold will be the future investment (not that it already is), but it could go over $2000.

 

[klein]

We might have to hang in very tight come Monday:

Israel and Dubai stock markets were open Sunday. They lost 7% and 6% respectively !!!

Other headline : G7 members, (Financial Ministers), to have a confernce call this Sunday evening to discuss the American Credit Rating downgrade.

 

[toonertoo]

I don't want to offend anyone here, but here I go. If you want to see the problem with entitlements, walk through a grocery store, thats not one of the nicer ones, around the beginning of the month. Sorry to say, but we have people from Katrina still living in hotels paid for by taxpayers, getting money and a price of plastic to swipe on our dime. That's just one example. Don't get me started on the generational welfare recipients. Or, the SSI debacle.

I would say, dont get us started. I watch the same thing, and I live near a campground and on the 1st of every month, should I go to the local store. I am in line behind EVERYONE who can buy the best beer, while I buy Miller High life lite. (but I love it) While I take the time to use coupons and shop wisely, these people are buying THE BEST steaks, Ribs and chips, ice cream, pop, candy bars, even ice is covered. They do not worry what the total would be or if they got the best deal. Dont you think they should worry? Why are only the productive told, they have to cut back? Im having burgers on the grill to celebrate my day away from work. Why doesnt everyone have to cut back? I have no problem with tightening up on spending, I guess I dont really have to yet, but Im worried about the future. What if I get sick or hurt and cant work? I can only depend on my self. Been there done it, no fun.
If the prices raise dramatically, they will get an increase in entitlements. Ill get told to suck it up. I see so much abuse, it makes me ill.
Now the woman rushing home from work, picking up her kids, buying a gal of milk, using her card. Not a problem, thats how it was designed.
The lowlifes, who have not yet learned to put a shirt, and shoes on to go in the store, and to put out your cigarette before you do, who smell like yesterdays cigarettes, buying 100 bucks worth of food and goodies for the weekend get drunk holiday, thats the problem.

 

[island1fox]

Lets get to the real bottom line. Obama has been in office for almost three years. The entire government was controlled by the democrats for the first two years.
First time ion history the credit rating of the U.S. has been downgraded.
It happened on OBAMA'S watch. Fact !!!

No budget , no plan, no common sense. Only shovel ready job that was succesful was Obama digging us deeper.

 

[UpstateNYUPSer(Ret)]

Lets get to the real bottom line. Obama has been in office for almost three years. The entire government was controlled by the democrats for the first two years.
First time ion history the credit rating of the U.S. has been downgraded.
It happened on OBAMA'S watch. Fact !!!

No budget , no plan, no common sense. Only shovel ready job that was succesful was Obama digging us deeper.

Try as I might, there is nothing that I can argue with here.

 

[moreluck]

Lets get to the real bottom line. Obama has been in office for almost three years. The entire government was controlled by the democrats for the first two years.
First time ion history the credit rating of the U.S. has been downgraded.
It happened on OBAMA'S watch. Fact !!!

No budget , no plan, no common sense. Only shovel ready job that was succesful was Obama digging us deeper.

Years from now, in history classes, kids won't even be able to see what plan Obama may have submitted when they study this fiasco. They'll be handed scribbles on napkins and sticky notes. There is no plan. Like there's no evidence that he was even here.

"We will control the horizontal. We will control the vertical." That's it, we're in the Outer Limits!!

 

[tonyexpress]

Lets get to the real bottom line. Obama has been in office for almost three years. The entire government was controlled by the democrats for the first two years.
First time ion history the credit rating of the U.S. has been downgraded.
It happened on OBAMA'S watch. Fact !!!

No budget , no plan, no common sense. Only shovel ready job that was succesful was Obama digging us deeper.

Not according to the top White House advisor, David Axelrod.

David Axelrod: This Is A 'Tea Party Downgrade'

A top White House adviser is blaming the downgrade of the U.S. credit rating on Tea Party Republicans, whom he says were unwilling to compromise on how to reduce the federal debt.

 

[Babagounj]

(The Hill) — John Chambers, the chairman of Standard & Poor’s sovereign debt ratings, on Sunday estimated that it could take between 9 and 18 years for the nation to regain its AAA credit rating.
Chambers said the credit agency could further downgrade the national rating depending on whether President Obama and congressional leaders can agree on reducing the deficit.
Chambers said “it could take a while” for the U.S. to regain its perfect credit rating.
​

 

[Babagounj]

Actually if bhos plans on running for a second term and this being the third year in office, history has shown that in order to win again this year will have to be his best year ever.
Unfortunately it does not seem to be the case.