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Title: Govt Official: US Expecting S&P Downgrade
Source:
ABC NEWS
URL Source: http://blogs.abcnews.com/politicalp ... us-expecting-sp-downgrade.html
Published: Aug 5, 2011
Author: Jake Tapper
Post Date: 2011-08-05 17:44:34 by Brian S
Keywords: None
Views: 4438
Comments: 8
August 05, 2011 4:51 PM A government official tells ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value. Officials reasons given will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited. The official was unsure if the bond rating would be AA+ or AA. Another government official confirms the Obama administration is preparing for the downgrade but is not 100% positive it’s going to happen, and if it does happen officials are not sure when it will happen. Before ratings agencies issue a downgrade, there is often some back and forth that goes on behind the scenes. Treasury Department officials have been making the case for months that S&P should not downgrade US debt.
Poster Comment: Rumors have been swirling all afternoon that the downgrade could happen this evening...
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#1. To: Brian S (#0)
The Teabaggers win another round. Too bad they couldn't send us into default. Oh well, there's always next time.
Honestly, I don't understand how any of these credit agencies operate unless they receive some bucks validating the credit worthiness of any business enterprise. Their recent history of AAA paper for some of the greatest Wall Street Firms (which are now defunct) is a testament to their own capabilities. The US government receives a free rating ALL THE TIME. Yet, where these credit rating firms concerning the USA during the time Bernanke was cranking out paper like a madman?
The statist D&R, big government borrow and spend, teabagging socialists, flat out refused to make the spending cuts necessary to restore confidence.
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
You don't bite the hand that feeds you. That's the whole problem with all of these "watchdog" enterprises. Our biggest creditors don't need to read S&P to know what fiscal condition our country is in. They buy and hold our paper because, as we found out about Wall Street banks and financial houses, some things are just too big to fail.
That is a function of perspective. As one example, China enjoys holding US federal securities; they hold massive quantities, too.
****GASP!!!**** But how can that BE???????????? I thought "the deal" to raise the debt ceiling suddenly made everything all perfect....? oBOMBa was saying it would DESTROY the economy if we didn't get "the deal" done, and that we'd lose our credit... but NOW we're gonna' lose our credit??? I thought oBOMBa SAVED us!!!!!!! < /SARC >
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
That's where the "too big to fail" comes into play. China can't dump their US paper without hurting themselves. They're stuck, and they know it. They also know that unless the crazies force a US default, they've still got a relatively safe investment. Muni and Treasury Bond holders did just fine over the last few weeks. It was people trying to buy bonds who got screwed.
If the American government's credit worthiness was going to be downgraded based upon some or few credit agencies, why didn't they do it during the GWBush years? I think credit rating bureaus already blew their cover, is all. They are sloppy and lazy; they are only good for large institutional buyers is all. And, today's instantaneous capabilities to understand where to plug some money renders them useless and old vestiges of the past.
#2. To: Skip Intro (#1)
#3. To: Brian S, *Extended Clip Progressives* (#0)
lack of confidence that the political system will be able to agree to more deficit reduction
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#4. To: buckeroo (#2)
Their recent history of AAA paper for some of the greatest Wall Street Firms (which are now defunct) is a testament to their own capabilities.
#5. To: Skip Intro (#4)
They buy and hold our paper because, as we found out about Wall Street banks and financial houses, some things are just too big to fail.
#6. To: Brian S (#0)
A government official tells ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value.
Freedom is slavery.
Ignorance is strength.
#7. To: buckeroo (#5)
That is a function of perspective. As one example, China enjoys holding US federal securities; they hold massive quantities, too.
#8. To: Skip Intro (#7)
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