S&P Downgrades US Credit Rating to AA-Plus

[Teelynn]

Source, please?

He voted “present” maybe not 90% of the time but totally more often than is usual. I have seen many statistics that if needed I will post…one source is votesmart, but there are others that I had looked at back in 2008. Put the abortion equation back into his voting record that in fact he did vote in, and what do you get? Abortion on demand. His voting record was terrible, but that is not the subject of the thread of which we have been reminded.

 

[OrdinaryMelkite]

There seems to be a rumour going around that Moody’s may get around to saying the same thing that S & P did.

ATVL, they have not said anything this morning. Strange.

This is going to be an interesting day, to say the least.

 

[gilliam]

There seems to be a rumour going around that Moody’s may get around to saying the same thing that S & P did.

ATVL, they have not said anything this morning. Strange.

This is going to be an interesting day, to say the least.

In a note reaffirming Moody’s AAA rating of U.S. debt, Moody’s analyst Steven Hess wrote: “For the AAA rating to remain in place, we would look for further measures that would result in the ratio of federal government debt to GDP, for example, peaking not far above the projected 2012 level of near 75 percent by the middle of the decade and then declining over the longer term. Last week’s agreement (on the U.S. debt ceiling) suggests that coming to an agreement that would meet this criterion by early 2013 will be challenging, given the political polarization, but not necessarily impossible.”

Read more: portfolio.com/business-news/2011/08/08/Moodys-could-join-standard-and-poors-in-us-downgrade#ixzz1URfwdtyX

 

[OrdinaryMelkite]

In a note reaffirming Moody’s AAA rating of U.S. debt, Moody’s analyst Steven Hess wrote: “For the AAA rating to remain in place, we would look for further measures that would result in the ratio of federal government debt to GDP, for example, peaking not far above the projected 2012 level of near 75 percent by the middle of the decade and then declining over the longer term. Last week’s agreement (on the U.S. debt ceiling) suggests that coming to an agreement that would meet this criterion by early 2013 will be challenging, given the political polarization, but not necessarily impossible.”

Read more: portfolio.com/business-news/2011/08/08/Moodys-could-join-standard-and-poors-in-us-downgrade#ixzz1URfwdtyX

That is good, for the time being-------

I hate to be a downer, but I VERY much doubt that a compromise will be reached on this.

 

[SamH]

That is good, for the time being-------

I hate to be a downer, but I VERY much doubt that a compromise will be reached on this.

Considering the fact that the majority party that prevented real spending reform called those that proposed real reform terrorist I plan on seeing additional down grades in the future.

 

[gilliam]

Bonds are up. More from CNBC’s Jeff Cox,:
Standard & Poor’s spoke loudly and clearly when it downgraded US debt, but the Treasury market on Monday didn’t appear to be listening.
While stock markets were selling offaround the world bonds rallied. The 30-year bond gained more than a point in price as investors sent their own clear message that in times of turmoil, Treasurys were still the safest house on the block.

The movements seemed to suggest that S&P, for all the bluster and bold headlines its move created, was not calling the shots.

 

[OrdinaryMelkite]

Bonds are up. More from CNBC’s Jeff Cox,:
Standard & Poor’s spoke loudly and clearly when it downgraded US debt, but the Treasury market on Monday didn’t appear to be listening.
While stock markets were selling off around the world bonds rallied. The 30-year bond gained more than a point in price as investors sent their own clear message that in times of turmoil, Treasurys were still the safest house on the block.

The movements seemed to suggest that S&P, for all the bluster and bold headlines its move created, was not calling the shots.

That is to be expected. However, oil is down and the DOW is down to -332. Not really good. May stay like that for the rest of the day, unless something totally surprising happens.

 

[catholictiger]

looks like this is having a big impact no the markets today down 300 already this morning.

 

[Ridgerunner]

Bonds are up. More from CNBC’s Jeff Cox,:
Standard & Poor’s spoke loudly and clearly when it downgraded US debt, but the Treasury market on Monday didn’t appear to be listening.
While stock markets were selling off around the world bonds rallied. The 30-year bond gained more than a point in price as investors sent their own clear message that in times of turmoil, Treasurys were still the safest house on the block.

The movements seemed to suggest that S&P, for all the bluster and bold headlines its move created, was not calling the shots.

I am not sure I would regard the flight to treasuries as a vote of confidence in the economy or in the long-term creditworthiness of the U.S. government. The big flight is to two-year treasuries, and there isn’t any real question that the U.S. has the ability to refinance them when due. The big question is “at what (interest) cost”? With the stock market falling out of bed the way it is, and with gold reaching over $1700 for the first time (even riskier than treasuries), I do not see the flight to short-term treasuries as expressing confidence in the economy, the currency or the government.

 

[OrdinaryMelkite]

I am not sure I would regard the flight to treasuries as a vote of confidence in the economy or in the long-term creditworthiness of the U.S. government. The big flight is to two-year treasuries, and there isn’t any real question that the U.S. has the ability to refinance them when due. The big question is “at what (interest) cost”? With the stock market falling out of bed the way it is, and with gold reaching over $1700 for the first time (even riskier than treasuries), I do not see the flight to short-term treasuries as expressing confidence in the economy, the currency or the government.

Good insight.

 

[jomoco]

This is what I don’t really understand about the Democrat’s position.
forget who to blame, and making political hay by playing the blame game.

Don’t they see these trillions of dollars of debt, with money being printed out of thin air, as a real existential problem for the country?

How can the Tea Party be responsible? I mean, if this is the reality, wouldn’t the problem be even bigger if forces of a more conservative fiscal party were not their reigning in the spending so that even bigger wads of cash are being created in order to pay for interest on the debt?

Try actually reading page 4 of the s&p downgrade report itself to answer your question.

The S&P Credit Rating Downgrade Report states on Page 4: “Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.”

And anyone who says different has not read the report.

Hate to pop your little teaparty bubbles boys, but it is what it is, despite wishful thinking.

jomoco

 

[Rence]

Originally Posted by sub rosa
Actually it was the attitude of so many posters that had me questioning what was going on over here. Since I have gone to a Catholic schools through graduate and doctoral studies I am amazed at the lack of factual information people seem to have. Since I have access to Catholic “heirachy” I don’t worry about my standing in the Church in voting. My bishop assures me I won’t be going to hell for voting for obama. I’ll take him at his word.

Thankfully, lurkers have access to the US Bishops voting guide and their family priest. Like Sub Rosa, everyone really has access to their Bishop if they happen to have questions about what the US Bishops have written.

 

[iamrefreshed]

My bishop assures me I won’t be going to hell for voting for obama. I’ll take him at his word.

Actually, your Bishop cannot assure you of that. Only God knows.

 

[catholictiger]

Actually, your Bishop cannot assure you of that. Only God knows.

just because you vote for obama doesn’t mean you are going to hell, but voting for such a pro choice president is a pretty major sin.

 

[Robert_Bay]

MODERATOR NOTICE

This thread is wandering. Please return to the topic in the original post.

Please discuss the issues and not each other

 

[Rence]

It’s comical then that Boehner would say Obama moved the goal posts if Obama wasn’t on the field. Whether or not he necessarily had a plan in writing or not, that doesn’t mean he didn’t have a plan.

He did have a plan.

topics.nytimes.com/top/reference/timestopics/subjects/f/federal_budget_us/index.html

 

[catholictiger]

MODERATOR NOTICE

This thread is wandering. Please return to the topic in the original post.

Please discuss the issues and not each other

thanks

btw fannie mae freddie mac and housing debt got a downgrade this morning that will just add to the problems.

 

[jomoco]

Try actually reading page 4 of the s&p downgrade report itself to answer your question.

The S&P Credit Rating Downgrade Report states on Page 4: “Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.”

And anyone who says different has not read the report.

Hate to pop your little teaparty bubbles boys, but it is what it is, despite wishful thinking.

jomoco

My humble attempt to stay precisely on topic.

standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldata&blobtable=MungoBlobs&blobheadervalue2=inline%3B+filename%3DUS_Downgraded_AA%2B.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1243942957443&blobheadervalue3=UTF-8

jomoco

 

[ETEXAS]

Never panic! I am a Capitol Investor, first rule my Uncle taught me! Billionaire Investor Buffet has his secretary bring him his “Paper”… He only reads sports and the Comics!!! I never watch the news… I watch sci fi listen to jazz and look at straight market figures… I am 41… Own oil gas land and a magazine… It either works or my Irish shows “Luck”!

 

[ProVobis]

and with gold reaching over $1700 for the first time (even riskier than treasuries), I do not see the flight to short-term treasuries as expressing confidence in the economy, the currency or the government.

Gold (delivered not paper) has survived many governments and all their bogus currencies and bonds.