United States Credit Rating Downgraded

[Strike For The South]

You reap what you sow.

http://money.cnn.com/2011/08/05/news...=BN1&hpt=hp_t1

Remember when Obama offered 4.5 trillion in reduction and Bohener said no?

http://www.standardandpoors.com/serv...ervalue3=UTF-8

The political brinksmanship of recent months highlights what we see asAmerica's governance and policymaking becoming less stable, less effective,

and less predictable than what we previously believed.

[Xiahou]

Remember when Obama offered 4.5 trillion in reduction and Bohener said no?

No, I don't.

[ICantSpellDawg]

Congratulations everyone! One more step towards global parity. Painful, but necessary.

[Centurion1]

http://www.huffingtonpost.com/2011/0..._n_919867.html

The move came after Congress haggled over budget cuts and the nation's borrowing limit – and failed to cut enough government spending to satisfy S&P.

No, you reap what you sow. Because the blame is bi-partisan in nature at best.

From the same article you posted,

However, one of S&P's explicit criticisms of the compromise was that it didn't address the biggest drivers of the nation's debt -- Social Security and Medicare

Whose babies are those?

[a completely inoffensive name]

Whose babies are those?

Obama's proposal gave about $680 billion in cuts for those.

[Papewaio]

Guys it's the bickering more then anything that is dropping the credit rating. Team USA has been playing as a group of star players not a star team, as such Team USA has had it's rating dropped to AA+ and with a negative outlook.

There are a lot of bitter pills to swallow and they have to work as a team or its just going to get worse.

[ICantSpellDawg]

Guys it's the bickering more then anything that is dropping the credit rating. Team USA has been playing as a group of star players not a star team, as such Team USA has had it's rating dropped to AA+ and with a negative outlook.There are a lot of bitter pills to swallow and they have to work as a team or its just going to get worse.

We don't deserve the credit. Retraction is more likely than growth and our debt is out of control. We should have had a downgrade years ago, but were able to keep it out of political pressures

[Major Robert Dump]

This actually makes me very, very happy.

[ICantSpellDawg]

Obama's proposal gave about $680 billion in cuts for those.

But they didn't happen. We can all say what was given and what was offered, but they are still right where they were before. We don't know the the true machinations of politics. I was open to "revenue boosters" from tax reform, so were most registered republicans. Even those congressmen who signed the tax pledge eased off with a similar easing from norquist.

[a completely inoffensive name]

But they didn't happen.

Which is why Strike is lamenting how Boehner walked out...I think.

We can all say what was given and what was offered, but they are still right where they were before. We don't know the the true machinations of politics. I was open to "revenue boosters" from tax reform, so were most registered republicans. Even those congressmen who signed the tax pledge eased off with a similar easing from norquist.

Well from what happened it looked like the Republican leadership wasn't open to those. Don't misinterpret me, I am not going to blame Republicans for all of our economic woes, but they were the wrench in the gears this time around and now our plan has been deemed inadequate.

[Centurion1]

double.

[ICantSpellDawg]

Sometimes, when things are broken major changes need to be made. Neither the republicans nor the democrats have any idea how the new economy works. The united states has lost the benefit that it once had. It used to be the only game in town with a disjointed europe constantly inflicting catastrophic wars on one another. Now, china does what we used to do economically, only better. Our place in the world is lost for the moment. We need to encourage parity, whether we'd like it or not. We need to invest in global markets intelligently. We need to slash social security spending by raising the retirement age to 75. We need to slash our military spending, eliminating all of these waste programs, f22, f35. We need to reform the tax code and end the drug war. We need to downsize law enforcement around the country and encourage weapons ownership. We need to eliminate traditional educational institutions and digitize the learning process, firing half of the teaching force. We need to cut out massive swathes of the laws that make everyone a criminal waiting to be nicked and give massive cuts to the wages of government employees. We need to invest in infrastructure and education with the saved surplus. We need laws that require that employees be given a share of the companies stock. We need a new deal of sorts, revolutionary politics

[ICantSpellDawg]

I thoroughly blame jersey shore, alcohol and our absurd interest in sports for the fall of western civilization.

[Strike For The South]

:rollingeyes: the fall of western civ?

[Louis VI the Fat]

:rollingeyes: the fall of western civ?

Rolling eyes? Have you ever even seen Jersey Shore?

[Adrian II]

:rollingeyes: the fall of western civ?

I don't think so, the world is giving S&P's the finger. US bond yields are at an all time low this morning.

Of course the reason for this might be a coming meltdown in shares, followed by large scale rioting in all major cities, political chaos and military coups, followed by all-out war and devastation of the world as we know it.

But US bonds are safe.

AII

[Strike For The South]

I don't think so, the world is giving S&P's the finger. US bond yields are at an all time low this morning.

Of course the reason for this might be a coming meltdown in shares, followed by large scale rioting in all major cities, political chaos and military coups, followed by all-out war and devastation of the world as we know it.

But US bonds are safe.

AII

As the dust starts to settle with this it becomes clear S&P was looking for a reason to downgrade after they got the majority of the blame for the junk bonds, coupled with the 2 trillion dollar error I feel like the administration is not toattly on clay fleet when they say this is a purley political move

[Lemur]

Economist/opinion machine Paul Krugman lays some very effective smack down on S&P today. Possible responses from investors and economics wonks: oh snap, oh no he di'n't, it's on now, you go girlfriend, and this **** just got real.

Let’s start with S.& P.’s lack of credibility. If there’s a single word that best describes the rating agency’s decision to downgrade America, it’s chutzpah — traditionally defined by the example of the young man who kills his parents, then pleads for mercy because he’s an orphan.

America’s large budget deficit is, after all, primarily the result of the economic slump that followed the 2008 financial crisis. And S.& P., along with its sister rating agencies, played a major role in causing that crisis, by giving AAA ratings to mortgage-backed assets that have since turned into toxic waste.

Nor did the bad judgment stop there. Notoriously, S.& P. gave Lehman Brothers, whose collapse triggered a global panic, an A rating right up to the month of its demise. And how did the rating agency react after this A-rated firm went bankrupt? By issuing a report denying that it had done anything wrong.

So these people are now pronouncing on the creditworthiness of the United States of America?

[Strike For The South]

It's good to see people taking your advice