S&P Downgrades US Credit Rating to AA-Plus

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OrdinaryMelkite said:
True----but what I am getting at is that bradcasters had been saying that S & P had been warning for weeks that the government needed AT LEAST four trillion dollars in cuts for the plan to work. Of course, the compomise did not go that way.

Yes, partisan politics is alive and well-----even now. Democrats (predictably) are now blaming the Tea Party (!) :eek:. Republicans are blaming (predictably) the Democrats.

And WHERE, oh WHERE is our President the day after the fact?
For God’s sake, Obama, put down the golf club and talk to us!!!🤷
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He just sank the Country, his legacy will be the downgrading our AAA credit rating. It may also include the Great Obama Depression before the end of his term.

God Bless
 
estesbob said:
And of course the Democrat response in RAISE TAXES!:

Reid: S&P downgrade backs Dems’ call for more revenue

thehill.com/blogs/blog-briefing-room/news/175741-reid-sap-downgrade-backs-dems-call-for-more-revenue
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Revenues are pretty much going to have to form some part of the ultimate solution. They can’t form all of it (or even most of it) but they’ll have to be a part of it.

Personally, I don’t see why we don’t just revert to the 1999 budget and then cut 5% across the board.
 
jomoco said:
This downgrade could have been avoided had the tea party not disgraced their fathers by absolutely refusing to pay anywhere close to the taxrates paid by their conservative parents during wartime.

The neocon mantra of paying for our wars by cutting taxes on millionaires and billionaires is unique to only the tea party mentality, and has crippled this country in ways that are now self-evident as un-mitigated greed and refusal to sacrifice anything for the country that made their wealth possible.

That’s the precise reason the tea party is now toxic and destined for the most shameful pages of America’s history books, in my objective opinion, as well as many others apparently.

.nytimes.com/2011/08/05/us/politics/05teaparty.html

jomoco
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The main objective of the Tea (taxed enough already) was to CUT SPENDING. Please expand your media options.
 
Soldier_Of_God said:
Then they hold and deserve the bulk of the criticism for the CDO market fiasco. 😃
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Absolutely.

S&P, along with Moodys and every other rating agency, were giving AAA ratings to CDOs and other mortgage-backed securities when the soundness of these instruments was, to put it mildly, questionable.

As far as Obama, his legacy will probably be his preceived failure to put the system to rights even though the system is beyond one man’s ability to repair. That won’t stop his partisan opponents from assigning total blame to him. I think he will deserve some of the blame, though, because he is trying to govern in the same manner as his unfortunate predecessor…toadying up to Wall St and the big multinationals who effectively run this country.
 
EmperorNapoleon said:
The assessment I presented is based on the facts of the bill as published by the CBO. The numbers S&P was using may have been incorrect but the same points can be made with the real figures. Even if the numbers are wrong; the conclusion is still correct. S&P wants to send a message to the government and its become apparent that the only thing Washington will pay attention to is a credit rating decline.
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And the answer no doubt will be “raise taxes”.
 
MugenOne said:
I think you’ve gotten that in reverse.
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Sorry, I did get that backwards. I was trying to remember my Econ class from 4 years ago. Last is the common shareholders and right before them is the preferred shareholders.
 
Stjudeprayforus said:
Question for people smarter than I…What does this mean to us little people?
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At first it will mean very little because this was already known by the markets. Not only that, but markets already know that other countries are more debt impaired than the strict criteria for their ratings indicate. We are still the least bad credit risk in the world.

If we do not get our act together and get spending under control, interest rates will be higher over time and compound the problem for every one of us. Higher interest rates will mean higher costs for everyone who borrows and slower growth than we would have with a more resposible society and a more responsible government.
 
With Uncle Ben printing Zimbabwe dollars and Obama spending money we don’t have, we will continue to see more downgrades and economic turmoils. I think it’s time to buy a farm. Load up on ammunition and veterinary medicine (survival medication). Be self-sufficient. Good luck to you and yours.
 
jomoco said:
This downgrade could have been avoided had the tea party not disgraced their fathers by absolutely refusing to pay anywhere close to the taxrates paid by their conservative parents during wartime.

The neocon mantra of paying for our wars by cutting taxes on millionaires and billionaires is unique to only the tea party mentality, and has crippled this country in ways that are now self-evident as un-mitigated greed and refusal to sacrifice anything for the country that made their wealth possible.

That’s the precise reason the tea party is now toxic and destined for the most shameful pages of America’s history books, in my objective opinion, as well as many others apparently.

.nytimes.com/2011/08/05/us/politics/05teaparty.html

jomoco
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This most reminds me of the time my 8 year old niece got really mad at her teacher for getting her in trouble by sending a note to her parents about her misbehavior in class.

The Tea-Party people were much more the messengers than the cause of the problem. If you focus on the Tea-Party rather than the enormous over-spending since at least the 1960’s, the problem will only get worse. Social Security, Medicare, and Obamacare are all huge problems that the government does not account for honestly. S&P and the markets are finally recognizing the facts, ugly as they are.
 
Trader said:
If we do not get our act together and get spending under control, interest rates will be higher over time and compound the problem for every one of us. Higher interest rates will mean higher costs for everyone who borrows and slower growth than we would have with a more resposible society and a more responsible government.
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I don’t hold to that theory. More responsible is to get people to save, but you don’t encourage savings with 0% interest rates. Look what happened in the 80’s when Volcker raised interest rates to 18%. Sure it stuck it to the borrowers but the economy boomed after that. Economies depend on borrowing AND LENDING. Interest rates at 0% mean squat if no one will lend it to you at that rate.
 
gnjsdad said:
Absolutely.

S&P, along with Moodys and every other rating agency, were giving AAA ratings to CDOs and other mortgage-backed securities when the soundness of these instruments was, to put it mildly, questionable.

As far as Obama, his legacy will probably be his preceived failure to put the system to rights even though the system is beyond one man’s ability to repair. That won’t stop his partisan opponents from assigning total blame to him. I think he will deserve some of the blame, though, because he is trying to govern in the same manner as his unfortunate predecessor…toadying up to Wall St and the big multinationals who effectively run this country.
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Are you talking about Maureen Dowd and Robert Reich? They both wrote articles recently about Obama’s inability to lead. Most people realize he’s a failure, but I’m sure a small percentage of die hards will see no wrong in him.
 
MugenOne said:
With Uncle Ben printing Zimbabwe dollars and Obama spending money we don’t have, we will continue to see more downgrades and economic turmoils. I think it’s time to buy a farm. Load up on ammunition and veterinary medicine (survival medication). Be self-sufficient. Good luck to you and yours.
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The rice guy?
 
Most posters are ignoring the fact that the S&P had factored in an expiration of the so called Bush tax cuts. The failure of Congress to allow them to expire and seeming intransigence on the issue has played a role in their decision. So, they are basically saying that a mix of spending cuts and more revenue is what they were looking for in a budget. I know this makes little difference to people that only desire to criticize and blame Obama for all manner of ill in the world. And, it is precisely what motivates the Tea Party and the House Republicans. The fact of the matter is that it is Congress’s responsibility to pass budgets, set spending limits, and borrow the money to pay for that spending. This was a manufactured crisis. The Congress, Republicans and Democrats alike, voted for a budget that required the government to spend more than it took in in revenues. So, they tacitly agreed to borrow more money when the passed the continuing resolution that poses for a budget that is currently in force. Their sudden refusal to raise the Debt Ceiling is the height of hypocracy. It doesn’t take a Constitutional Amendment to balance the budget. It takes political will. And, like it or not, there have only been two Presidents that have submitted a balnaced budget to Congress. Harry Truman and Bill Clinton. These are the factss. They are not in dispute except in the heat oppressed minds of the Tea Party.
 
gnjsdad said:
Absolutely.

As far as Obama, his legacy will probably be his preceived failure to put the system to rights even though the system is beyond one man’s ability to repair. That won’t stop his** partisan opponents** from assigning total blame to him…
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You speak against his partisan opponents.
You spoke against any appointees from the supposedly bipartisan plutocracy.

…
 
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