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[CNBC] S&P contacts White House to notify about a downgrade coming

Discussion in 'BBS Hangout: Debate & Discussion' started by robbie380, Aug 5, 2011.

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  1. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    Just passing it along so everyone can go load up on guns and ammo at Walmart and hunker down in their bomb shelter.

    edit...found the story and it is a downgrade

    http://www.washingtonpost.com/busin...redit-rating/2011/08/05/gIQAqKeIxI_story.html

    S&P downgrades U.S. credit rating for first time

    By Zachary A. Goldfarb, Updated: Friday, August 5, 7:33 PM

    Standard & Poor’s announced Friday night that it has downgraded the sterling U.S. credit rating for the first time.

    The move came even though the Treasury Department said that it had found a math error in the firm’s calculations of deficit projections, according to a person familiar with the matter.

    S&P decided to lower the AAA rating, held by the United States for 70 years, to AA+ after a bipartisan debt deal signed into law this week failed to assuage concerns about the nation’s growing spending.

    Analysts have said a downgrade could increase the cost of borrowing for the U.S. government and lead to tens of billions of dollars in more interest costs per year. That could translate into higher borrowing for consumers and businesses, too.

    A downgrade would also have a cascading series of effects on states and localities that rely on federal funding, including in the Washington metro area, potentially raising the cost of borrowing for schools and parks.

    But the exact impact of the downgrade won’t be known at least until Sunday night, when Asian markets open, and perhaps not fully grasped for months. Analysts say the immediate term impact is likely to be modest because the markets have been expecting a downgrade by S&P for weeks.

    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.

    Some analysts are worried about the impact of a downgrade on markets where Treasurys are held as collateral and the AAA rating is required. But most analysts don’t expect this issue to pose a major problem.

    S&P’s action is the most tangible vote of disapproval so far by Wall Street on the deal between President Obama and Congress to cut the deficit by at least $2.1 trillion over 10 years. S&P has said that it wanted at least $4 trillion of deficit reduction.

    The downgrade is likely to be used as a weapon by both Republicans and Democrats as they argue the other side has not taken deficit reduction seriously.

    Other credit rating agencies — Moody’s Investors Service and Fitch Ratings — have decided not to downgrade the United States credit rating. But they’ve warned that, if the economy deteriorates significantly or the government does not take additional steps to tame the debt, they could move to downgrade too.

    In April, S&P first said it might downgrade the United States credit rating on concerns that lawmakers would not be able to come to a deal on reducing the debt. In July, as efforts stagnated, S&P said the odds of a downgrade within three months had moved up to 50 percent.

    The ultimate deal between Obama and Congress ultimately failed S&P’s benchmark. Obama administration officials have been critical of S&P for making what was essentially a political judgment and for failing to conclude that the country was making a strong first step to reducing its deficit.
     
    #1 robbie380, Aug 5, 2011
    Last edited: Aug 5, 2011
  2. basso

    basso Contributing Member
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    Maybe fairness should take a backseat to growth.
     
    #2 basso, Aug 5, 2011
  3. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    edit...found the actual story
     
    #3 robbie380, Aug 5, 2011
    Last edited: Aug 5, 2011
  4. bigtexxx

    bigtexxx Contributing Member

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    The fact that we're even talking about this possibility just goes to show how awful Obama is. 2012 can't get here soon enough
     
    #4 bigtexxx, Aug 5, 2011
    1 person likes this.
  5. Pizza_Da_Hut

    Pizza_Da_Hut I put on pants for this?

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    Enter in the republicans who started this mess in the first place who blame Obama for some strange reason...
     
    #5 Pizza_Da_Hut, Aug 5, 2011
  6. Commodore

    Commodore Contributing Member

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    unprecedented

     
    #6 Commodore, Aug 5, 2011
  7. pirc1

    pirc1 Contributing Member

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    Yes, take off the 1 trillion plus in tax revenue and get the down grade then blame Obama, that sounds like a good plan. Not that Obama is that great a president, but this is all on the damn tea party idiots.
     
    #7 pirc1, Aug 5, 2011
  8. Commodore

    Commodore Contributing Member

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    [​IMG]
     
    #8 Commodore, Aug 5, 2011
  9. Space Ghost

    Space Ghost Contributing Member

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    Reagans Fault
    Bush's I fault
    Bushs II fault
    Republicians fault
    Tea Parties fault

    See the pattern?
     
    #9 Space Ghost, Aug 5, 2011
  10. Oski2005

    Oski2005 Contributing Member

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    Is the pattern that whenever somebody assigns proper blame you try to make it seem like they are blaming repubs for no reason, because I've seen your pattern. Plus, at no point did anybody put this on Reagan, Bush I, or even Dubya because they were never f**king stupid enough to think that playing around with the debt ceiling was a good idea. None of them ever considered such a thing.
     
    #10 Oski2005, Aug 5, 2011
  11. basso

    basso Contributing Member
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    The duck starts here.
     
    #11 basso, Aug 5, 2011
  12. Commodore

    Commodore Contributing Member

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    http://governor.state.tx.us/news/press-release/13441/

     
    #12 Commodore, Aug 5, 2011
  13. Ubiquitin

    Ubiquitin Contributing Member
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    Irony.
     
    #13 Ubiquitin, Aug 5, 2011
  14. Commodore

    Commodore Contributing Member

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    <!-- http://twitter.com/JimPethokoukis/statuses/99648353087930368 --> <style type='text/css'>.bbpBox99648353087930368 {background:url(http://a2.twimg.com/profile_background_images/151544917/JimCNBC1.jpg) #DBE9ED;padding:20px;} p.bbpTweet{background:#fff;padding:10px 12px 10px 12px;margin:0;min-height:48px;color:#000;font-size:18px !important;line-height:22px;-moz-border-radius:5px;-webkit-border-radius:5px} p.bbpTweet span.metadata{display:block;width:100%;clear:both;margin-top:8px;padding-top:12px;height:40px;border-top:1px solid #fff;border-top:1px solid #e6e6e6} p.bbpTweet span.metadata span.author{line-height:19px} p.bbpTweet span.metadata span.author img{float:left;margin:0 7px 0 0px;width:38px;height:38px} p.bbpTweet a:hover{text-decoration:underline}p.bbpTweet span.timestamp{font-size:12px;display:block}</style> <div class='bbpBox99648353087930368'><p class='bbpTweet'>Didn't S&P read Obama's long-term debt plan ... oh, wait<span class='timestamp'><a title='Sat Aug 06 01:09:53 +0000 2011' href='http://twitter.com/JimPethokoukis/statuses/99648353087930368'>less than a minute ago</a> via <a href="http://www.tweetdeck.com" rel="nofollow">TweetDeck</a> <a href='http://twitter.com/intent/favorite?tweet_id=99648353087930368'><img src='http://si0.twimg.com/images/dev/cms/intents/icons/favorite.png' /> Favorite</a> <a href='http://twitter.com/intent/retweet?tweet_id=99648353087930368'><img src='http://si0.twimg.com/images/dev/cms/intents/icons/retweet.png' /> Retweet</a> <a href='http://twitter.com/intent/tweet?in_reply_to=99648353087930368'><img src='http://si0.twimg.com/images/dev/cms/intents/icons/reply.png' /> Reply</a></span><span class='metadata'><span class='author'><a href='http://twitter.com/JimPethokoukis'><img src='http://a3.twimg.com/profile_images/1263054467/cnbc2_normal.jpg' /></a><strong><a href='http://twitter.com/JimPethokoukis'>James Pethokoukis</a></strong><br/>JimPethokoukis</span></span></p></div> <!-- end of tweet -->
     
    #14 Commodore, Aug 5, 2011
  15. bigtexxx

    bigtexxx Contributing Member

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    LMAO. Obama doesn't have a plan. He's clueless. Much of America is just now waking up to the sham that he is. We've suffered through his "on the job training" period, and it's been a failure.
     
    #15 bigtexxx, Aug 5, 2011
  16. gifford1967

    gifford1967 Contributing Member
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    The teatards and the wingnuts truly ****ed us.
     
    #16 gifford1967, Aug 5, 2011
  17. Northside Storm

    Northside Storm Contributing Member

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    Guess even S&P has a liberal bias, AMIRITE
     
    #17 Northside Storm, Aug 5, 2011
  18. DonnyMost

    DonnyMost be kind. be brave.
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    Bush era Republicans' wreckless spending habits and revenue cuts finally came back and bit us in the ass. Nobody has forgotten who created the deficit, according to most polls. So Obama will get another term to undo this conservative mess, rightly so.
     
    #18 DonnyMost, Aug 5, 2011
  19. Northside Storm

    Northside Storm Contributing Member

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    meh, I'm thinking America's going to elect a TEA MAN, then that tea man is going to force severe austerity measures, the economy will explode, and then the renmibi will become the world reserve currency, but I'm in a very cynical mood.
     
    #19 Northside Storm, Aug 5, 2011
  20. SamFisher

    SamFisher Contributing Member

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    That republicans are ****ing idiots on the economy? yes we see it.

    Yes, and because we didn't adopt it, we got downgraded.....it's not exactly a coincidence that the magic S&P "must cut debt $4 trillion" was the exact same as Obama's plan.
     
    #20 SamFisher, Aug 5, 2011
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