Standard and Poor's downgrades US to AA+

[Riot]

..

The U.S. government reportedly expects the rating of U.S. debt to be downgraded by credit rating agency Standard and Poor's, according to ABC News. U.S. debt currently holds a triple-A credit rating, the highest possible.

On Tuesday, President Barack Obama signed an agreement to raise the debt ceiling of the U.S., after a political dispute that lasted for months.

UPDATE 7:10 p.m.: S&P is reconsidering its position on a potential U.S. credit downgrade after the Obama administration challenged the credit rating agency's economic model, CNN reports, citing a senior Obama Administration official, who said the analysis was off by "trillions" of dollars.

Politico's Ben White tweets the supposed errors are said to display "incompetence."

UPDATE 8:19 p.m.: S&P downgrades U.S. credit rating to AA+ with negative outlook, Reuters reports.

This is a developing story.

Thank you, Republicans in the House, for your terrible, incompetent "trickle down" "Reaganomics" fiscal policies, playing around with the fake "debt ceiling crisis" for a month, while you've done nothing at all since your election in January to address the real problem of this country, jobs and growth.

[witchdoctor]

http://www.washingtonpost.com/busine...IxI_story.html

It said the bi-partisan agreement reached this week to find $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 have no luck achieving more savings later on.

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.


I agree with you Riot. The Republicans caved in and should have been more forceful pushing for bigger cuts.

[clyde]

[Danzig]

you can't lay this all on one party. obama said when he took office that the economy would be his #1 priority. still waiting for the attention required by him and others.
that said, congress is a joke, and has been a joke for quite some time.

at any rate, not surprised, but still wish it hadn't happened...probably never get aaa back.

[Riot]

Originally Posted by Danzig

you can't lay this all on one party. .

Yes, I can. Who blocked the routine raise of the deficit ceiling, threatening the default of the USA for the first time in history? Who said the full faith and credit of the United States to pay it's bills didn't matter? That nothing would happen? It wasn't the Democrats as a party. Who refused deal with our debt by the necessary and essential revenue increases? Not the Dems.
Which party has successfully screwed the US economy just to try and screw Obama politically? It's the Republicans, who can't control their Tea Party faction.

ABC News:

Official reasons given, one official says, will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited.

http://blogs.abcnews.com/politicalpu...downgrade.html

[Rudeboyelvis]

"We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.


"We have also removed both the short-and-long-term ratings from CreditWatch negative," S&P said in a statement.

The downgrade, it said, reflects its opinion that the fiscal consolidation plan which Congress and the administration recently agreed to "falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics".

"More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011," the agency said.

"Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon."


LOLERZ!!!! From the same organization that gave AAA ratings to the CDO's and the Credit Default Swaps....

It's amazing how some love to immediately blame one side or the other when BOTH have been FUGGING you like ignorant pigs....Hopefully it isn't too late for us to realize that neither party has the best interest of this nation in mind and only their short term personal aspirations...












Nah.... it IS too late...

[Antitrust32]

Originally Posted by Riot

Yes, I can. Who blocked the routine raise of the deficit ceiling, threatening the default of the USA for the first time in history? Who said the full faith and credit of the United States to pay it's bills didn't matter? That nothing would happen? It wasn't the Democrats as a party. Who refused deal with our debt by the necessary and essential revenue increases? Not the Dems.
Which party has successfully screwed the US economy just to try and screw Obama politically? It's the Republicans, who can't control their Tea Party faction.

ABC News:

the main reason is that we did not cut enough spending and/or increase taxes (or as the dems called it, revenue increase). Both parties failed no matter what you believe. Tea party failed because they wont eliminate loopholes. Obama failed because he did not cut enough or deal with real issues, plus he signed the damn thing and is as weak as anyone i've ever witnessed.

[Riot]

Originally Posted by witchdoctor

It said the bi-partisan agreement reached this week to find $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 have no luck achieving more savings later on.

There was a deal with $4 trillion, plus tax increases, exactly as S & P outlined in their detail of why they downgraded the rating (and Moody's wanted that, too) That deal was made by Boehner and Obama, and nixed by the Tea Party in the House. Boehner gets to own that failure.

That said, S & P has an SEC problem, as it turns out they may have talked privately to some of their big investors before the downgrade.

Don't forget that S & P is owned by friends of the Bushes.

Of course, we don't have Dodd-Frank, as the Republicans have nixed any closer regulation of Wall Street. Too bad. We have agencies like S & P and Moody's, with their stellar history of rating derivatives, rating us. It will be fun to watch what happens now with Bank of America about to fail, too.

The Republican party owns this. Completely and without question.

[Antitrust32]

Originally Posted by Riot

There was a deal with $4 trillion, plus tax increases, exactly as S & P outlined in their detail of why they downgraded the rating (and Moody's wanted that, too) That deal was made by Boehner and Obama, and nixed by the Tea Party in the House. Boehner gets to own that failure.

That said, S & P has an SEC problem, as it turns out they may have talked privately to some of their big investors before the downgrade.

Don't forget that S & P is owned by friends of the Bushes.

Of course, we don't have Dodd-Frank, as the Republicans have nixed any closer regulation of Wall Street. Too bad. We have agencies like S & P and Moody's, with their stellar history of rating derivatives, rating us. It will be fun to watch what happens now with Bank of America about to fail, too.

The Republican party owns this. Completely and without question.

this is so dumb. both parties failed us. You think the repubs own this? Obama is weak and failed you.