S&P considering first downgrade of U.S. credit rating Updated: Friday, August 5, 8:18 PM
Standard & Poor’s plans to enact the first downgrade of the U.S. sterling credit rating was delayed Friday night when the Treasury Department said that it had found a math error in the firm’s calculations, according to news reports.
The White House was bracing for the downgrade, the reports said, after S&P officials advised the Treasury that it had decided to lower the AAA credit rating, which the U.S. government has held for 70 years. S&P decided to lower the rating after a bipartisan debt deal signed into law this week failed to assuage concerns about the nation’s growing spending.
But administration officials told the firm that it had wrongly calculated the nation’s deficit projections, according to the reports.
It was unclear when, or whether, the S&P would issue its downgrade in light of the mistake. Neither S&P nor the Treasury responded immediately Friday night to inquiries about the matter.
Standard & Poor’s has warned Washington several times this year that, unless the federal government took steps to tame its debt, its credit rating could be lowered.....................>>>>...........................>>>>....................................http://www.washingtonpost.com/.....IQAqKeIxI_story.html
We can thank the TeaParty and the Republican Congress for USA's first Credit Down grade. "THANK TEABAGGERS"!
Officials reasons given will be the political confusion surrounding the process of raising the debt ceiling, lack of confidence that the political system will be able to agree to more deficit reduction and Republicans saying that they refuse to accept any tax increases as part of a larger deal."
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
It was coming sooner or later and everyone already knew it, Putin went on the record and pretty much tore our government a new one on how we were doing business. His concern is with our treasuries and dollar, he made a statement that the dollar now needs competition as the worlds reserve currency. Also these credit agencies wanted to see over $4 trillion in real cuts and that wasn't going to happen, only $70 billion in cuts are going to happen in the first year which is pretty much a joke
"In the beginning of a change, the Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a Patriot."
The reason that the S and P is lowering our bond rating is because the idiots in our Congress didn't do enough to address the structural changes that will have a long term debt lowering effect. S and P said that a 4 trillion dollar cut in spending would be needed to stave off a lowering of our bond rating and Congress only lowered it by a mere 1 trillion. You also know that the Dems were the ones that didn't want any cuts in spending and the Reps refused any tax increases so they both are to blame.
The reason that the S and P is lowering our bond rating is because the idiots in our Congress didn't do enough to address the structural changes that will have a long term debt lowering effect. S and P said that a 4 trillion dollar cut in spending would be needed to stave off a lowering of our bond rating and Congress only lowered it by a mere 1 trillion. You also know that the Dems were the ones that didn't want any cuts in spending and the Reps refused any tax increases so they both are to blame.
Twice that I remember the President offered $4 Trillion in cuts, even cuts in Medicare and Medicaid along with a tax increase for those making over a $million. Both times the Republicans walked out of the meeting. Had this package contained a repeal of the Bush Tax Cuts for the Rich, our credit rating would not been downgraded.
Thanks to our anti govt, anti tax, anti everything TeaParty, US debt is now rated lower than some European countries.
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
Obama only said he would consider cuts to Medicare, Medicaid, and Social Security but when Obama's base heard about it they screamed so loud that he changed his tune the very next day. Obama and the Dems never offered to cut 4 trillion in spending and you're right that the conservative Reps held the line on raising taxes during a recession. Even Obama, when he was a Senator, said that we shouldn't raise taxes in a recession and voted no on raising the debt ceiling along with the rest of the Dems. Funny how the tune changes when the shoe is on the other foot.
Well they just lowered it to a AA+ whoopee, truth is nobody cares what they have to say or what our rating is, Monday will come and go as normal and our economy will still be on that slippery slide down. Also the 4 trillion in cuts was actually a minimum, even with that our spending would add to the deficit. They could have froze spending to last years budget and start cutting from that.
"In the beginning of a change, the Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a Patriot."
Obama only said he would consider cuts to Medicare, Medicaid, and Social Security but when Obama's base heard about it they screamed so loud that he changed his tune the very next day.
The cuts in Medicare are already taking place, that's been decided with the passing of Obamacare to work out a way to pay for it. Since most of his supporters still don't know what the hell Obamacare consist of I will love to hear them when they find out it's still been cut.
"In the beginning of a change, the Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a Patriot."
The cuts in Medicare are already taking place, that's been decided with the passing of Obamacare to work out a way to pay for it. Since most of his supporters still don't know what the hell Obamacare consist of I will love to hear them when they find out it's still been cut.
Oh yes that is true about medicare. Just ask some folks who get medicare. OMG!!! Their prescriptions and copays and coverage are out of control!!! And this started as soon as obamacare was passed. And that's no kidding!!! I know this 'first hand'!!
This debt crisis has been decades in the making. It isn't dem or rep.........it is the GLOBAL SYSTEM!! When a country has a debt/gdp at 100%.......they (we) don't deserve a AAA rating!!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
China tells U.S. "good old days" of borrowing are over On Saturday August 6, 2011, 10:23 am EDT By Walter Brandimarte and Melanie Lee
NEW YORK/SHANGHAI (Reuters) - China bluntly criticized the United States on Saturday one day after the superpower's credit rating was downgraded, saying the "good old days" of borrowing were over.
Standard & Poor's cut the U.S. long-term credit rating from top-tier AAA by a notch to AA-plus on Friday over concerns about the nation's budget deficits and climbing debt burden.
China -- the United States' biggest creditor -- said Washington only had itself to blame for its plight and called for a new stable global reserve currency.
"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," China's official Xinhua news agency said in a commentary.
After a week which saw $2.5 trillion wiped off global markets, the move deepened investors' concerns of an impending recession in the United States and over the euro zone crisis.
Finance ministers and central bankers of the Group of Seven major industrialized nations will confer by telephone later on Saturday or on Sunday, a senior European diplomatic source said.
The source said the credit rating downgrade had added a global dimension on top of the euro zone debt issue, raising the need for international coordination.
"The G7 will confer by telephone. It's not yet confirmed whether it will be in one stage or in two stages, tonight and tomorrow," the source said.
French Finance Minister Francois Baroin, who would chair such a meeting under France's G7 and G20 presidency, said it was too early to say whether there would be an early G7 gathering.
In the Xinhua commentary, China scorned the United States for its "debt addiction" and "short sighted" political wrangling.
"China, the largest creditor of the world's sole superpower, has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets," it said.
It urged the United States to cut military and social welfare expenditure. Further credit downgrades would very likely undermine the world economic recovery and trigger new rounds of financial turmoil, it said......................>>>>...................................>>>>...........................http://finance.yahoo.com/news/China-flays-US-over-credit-rb-3974888722.html?x=0
You can blame the tea party, Obama, the Democrats or the Republicans, but a major reason given by S&P in their report... As I posted... According to their press release, a major reason for the debt downgrade is: ~ "Republicans saying that they refuse to accept any tax increases as part of a larger deal." ~
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
S&P downgrades U.S. credit rating for first time By Zachary A. Goldfarb, Published: August 5 | Updated: Saturday, August 6, 12:35 AM
Standard & Poor’s announced Friday night that it has downgraded the U.S. credit rating for the first time, dealing a symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.
Lowering the nation’s rating to one notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less stable, less effective and less predictable.” It said the bipartisan agreement reached this week to find at least $2.1 trillion in budget savings “fell short” of what was necessary to tame the nation’s debt over time and predicted that leaders would not be likely to achieve more savings in the future.http://www.washingtonpost.com/.....IQAqKeIxI_print.html
S&P downgrades U.S. credit rating for first time By Zachary A. Goldfarb, Published: August 5 | Updated: Saturday, August 6, 12:35 AM
Standard & Poor’s announced Friday night that it has downgraded the U.S. credit rating for the first time, dealing a symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.
Lowering the nation’s rating to one notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less stable, less effective and less predictable.” It said the bipartisan agreement reached this week to find at least $2.1 trillion in budget savings “fell short” of what was necessary to tame the nation’s debt over time and predicted that leaders would not be likely to achieve more savings in the future.http://www.washingtonpost.com/.....IQAqKeIxI_print.html
Shadow, From the S&P report on "United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And Rising Debt Burden":
~ "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. (standardandpoors.com August 5, 2011 )
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
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