US rating downgraded

[Stg1swret]

Breaking news on Foxnews.com , Standard and Poors has downgraded the US fro tipple A. If you thought the markets looked shakey the last two days wait until Mondays opening. It is going to be a bumpy ride.

http://hosted.ap.org/dynamic/stories/U/US_US_DEBT_RATING?SITE=FLTAM&SECTION=BUSINESS&TEMPLATE=

[piranha2]

I am surprised it is still AAA. We are damn bankrupted. Thank God for PMs.

[The Stig]

When posting a link to an outside site please include a copy of the text and some indication as to what website we are being sent to. Thanks.


S&P downgrades US credit rating from AAA

By MARTIN CRUTSINGER

WASHINGTON (AP) -- Credit rating agency Standard & Poor's on Friday downgraded the United States' credit rating first time in the history of the ratings.

The credit rating agency said that it is cutting the country's top AAA rating by one notch to AA-plus. The credit agency said that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country's debt situation.

A source familiar with the discussions said that the Obama administration feels the S&P's analysis contained "deep and fundamental flaws."

S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. It said such a downgrade to AA would occur if the agency sees less reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.

S&P first put the government on notice in April that a downgrade was possible unless Congress and the administration came up with a credible long-term deficit reduction plan and avoided a default on the country's debt.

After months of wrangling and negotiations with the administration, Congress passed this week a debt reduction package at the 11th-hour that averted a possible default.

In its statement, S&P said that it had changed its view "of the difficulties of bridging the gulf between the political parties" over a credible deficit reduction plan.

S&P said it was now "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 anytime soon."

[The Stig]

Will be interesting to see what happens with the institutional investors, many who are mandated to only be in AAA investments. Could be an even bigger sucking sound come Monday morning.

[Stg1swret]

Asian , and European markets were jittery, they now will go into panic mode. I wouldn't want to be on the floor of the stock exchange Monday. The sell orders will be unbelievable.

[The Stig]

Also of note will be the borrowing cost to states and municipalities. Many of them are on the brink as it is. I can see this resulting in a massive cutback in services and employment at that level.

[Stg1swret]

We are headed for a double dip recession, if not a full blown depression. If it is the latter and not the former, all bets are off. The will be no safe economy in the world, even China will get hammered. Mellon bank told its institutional and business customers it was going to start charging them for taking their deposits on Wednesday.

[LUNCHBOX]

All this after my inlaws told the wife "see I told you they would agree and we would be ok"--man I'm glad they don't like me, keeps me from talking to them. One more reason to hate Monday....

[izzyscout21]

Strap in boys, this could get ugly.

[bacpacker]

It's already ugly! Most states have been cutting back for a couple years. Police and fire departments have taken a big hit. Local Courts are starting to cut as well. I also wonder how far back the jobs report from this morning will go down to when revised in a month or two?

[ak474u]

I can understand why we want a AAA rating, but... When looking at it from the point of view of an investor on the outside looking in, would you loan us money? Broke people who are in credit card debt up to their eyeballs don't need more credit cards. That's basically the way I see the US, unfortunately I have to deal with high net worth people a lot, and I can see some of them putting off purchasing my products if the market tanks any further.

[Stg1swret]

S & P has announced it may again down grade the credit rating of the USA in February if additional cuts are not found .

[RedJohn]

How can a private company bring down the world to its knees by changing 1 letter on a code? This is insane.

[Fatty]

Well, when the government is owned by corporations...

[TEOTWAWKI13]

Time to go add some more ammo to the supplies!!! And food and water of course. :)

[RedJohn]

Time to go add some more ammo to the supplies!!! And food and water of course. :)

You don't have enough of that yet?

[Grumpy Old Man]

You don't have enough of that yet?

I don't believe it is possible to have enough of that, it's kind of like having too much money.;)

[AlphaTea]

Wifey in an inquisitive mood:
W: Do we need more anything?
me: more what?
W: stuff
me: spit it out, what are you saying?
W: are we "ready", do we have enough water, rice, beans, grits, TP, ammo, guns, knives, booze, shoes, clothes, gas etc.
TAST: woof woof grrr (translation, got enough bacon?)
me: we will never have enough, but we are fine. For now.
W: aren't you scared?
me: yup.
me: Scared for all those out there that were too blind to see this coming.
W: are you going to do anything?
me: yup (with a very large grin)
W: WELLL? WHAT?
me: I'm gonna go over to the fridge and get either a Dublin DR Pepper or a Mexican Coke (cola, not the white stuff), sit my butt on the sofa with you and laugh at talking heads on the tube. I might get up to take a leak later.

[bacpacker]

Alpha I like your discussion with the wife. Sounds like me and my old lady

Tet great to see you back on.

[Stg1swret]

600+ point drop today. Every market down close to 5%. Look for at least 10% more drop in value, before things star to flatten out. Italy and Spain need a bailout, and quite frankly, France and England are on the verge. The 12 person committee to make cuts will yield nothing, and the U.S.of A. , is in serious trouble. Until our politicians stop thinking like politicians, and start thinking like American's we are in serious trouble. By the time they wake up, it will most likely be to late. A year and a half more of the status-quo, and we will almost be a third world country. We are headed for a depression, and the hand writing is on the wall.