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To the Mods: Can you please change "OUR" in the title of the topic to "US"? So sorry. Forgot this board is international. xD
According to CNBC:
Michele Constantini | PhotoAlto | Getty Images
S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits.
U.S. Treasurys, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the UK, Germany, France or Canada.
The outlook on the new U.S. credit rating is negative, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months.
The rest of the article is here: http://www.cnbc.com/id/44039103.
Anyone who wants to read why S&P downgraded us can go to this link:
S&P Downgrade Report
Here's an excerpt from it:
• The downgrade reflects our opinion that the fiscal consolidation plan
that 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.
• 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.
• The outlook on the long-term rating is negative. We could lower the
long-term rating to 'AA' within the next two years if we see that less
reduction in spending than agreed to, higher interest rates, or new
fiscal pressures during the period result in a higher general government
debt trajectory than we currently assume in our base case.
This has a lot of consequences as our downgrade is probably going to result in higher interest payments on loans, and the average American family is going to experience those higher rates too.
I hate my country, but I gotta laugh at how bad our Congress was. A bad debt deal didn't do anything but stall the downgrade.
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MURICA15980 Posts
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I actually got an e-mail notification from the Financial Times.
I tried to find an article that confirmed it but they were all from around 30 minutes ago.
The headlines at the New York Times also confirms the credit downgrade.
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an interesting poll in the economist was quite revealing of who were the main (note main) culprits in not compromising on the debt ceiling/budget problems in general.
http://www.economist.com/node/21524888
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They reviewed the math and confirmed the downgrade ~8:30pm EST.
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I'm pretty sure this is correct and done after a review. Reuters and NYT both reporting.
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To our elected officals I have a sincere message:
For fucks sake just go. I don't even want to look at you gagglefucks anymore. Don't bother coming back for your stuff we'll have it sent to you.
Thanks for all the shit sandwiches and graft. It's been a interesting ten years but we're just different people now. It's time for us to go in a new direction with someone that won't hurt us all the time. Just leave.
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It's gonna be a darned bloody monday, the timing couldn't be worse than it is now after this weeks losses. Will be "interesting" to see this play out so to say. Is this the first time this has happened?
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And the first shoe drops...
I agree monday is going to be very very ugly for the markets. I hope the tea party people are happy.
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On August 06 2011 09:58 On_Slaught wrote:
I hope the tea party people are happy.
This.
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I wish other countries didn't know about the tea party >.>
Bush was embarrassing enough.
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Another downgrade possible in 12 to 18 months... I agree 100% with Klogon, and were I a voting American I would see that happen.
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Uh oh...could this be the beginning of the end?
Monday could turn out very bad indeed.
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On August 06 2011 09:58 On_Slaught wrote:
And the first shoe drops...
I agree monday is going to be very very ugly for the markets. I hope the tea party people are happy.
The Tea Party fanatics would have been fine with a default. They will twist this to call for more draconian cuts with no revenue increases.
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The world has absolutely no faith in the ability of the American government to reduce borrowing. Whether it be through reduced spending or greater tax revenue (either through broadening the tax base or raising tax rates). And the reason for it that perception is no one expects us to clearly resolve our political disputes over those issues any time soon.
Obama needs to go regardless; he's a failed president. The worst president on the economic front since Herbert Hoover. Hillary should run I'd vote for her over our in over his head current Executive and any of the current crop of GOP "candidates." At least she's a no-nonsense bitch even if she is a Democrat.
By the way, love how the Tea Party is responsible when the Democrats could have passed a budget for 600 days when they had total control of Congress and then had 200 more in charge of the Senate and refused to do so so they could play politics.
The only reason there was a "crisis" was because the budget votes and debt ceiling votes were pressed up right against each other which was the entire point of the Democrats, so they could demagogue the Tea Party, and look how many people here fell for it 
The budget votes could have been months ago and we could have had a battle about spending and taxes then, but Democrats wanted to scare people and blame the Tea Party.
Tea Party called their bluff. Now there is no chance of the economy improving and Obama loses next year. Already a foregone conclusion a long time ago that the GOP would re-take the Senate.
Democrats should learn not to play chicken with the country they always lose.
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Russian Federation3632 Posts
A well-deserved downgrade, sadly ~ its clear that no one in Washington, besides a small minority, is actually sincere about cutting spending.
I do believe that this generation (by which I mean "young persons") will be reneging on Social Security and other entitlement promises. What right does our current crop of legislators have to enslave future generations?
It will be the last laugh, so to speak.
PS. Change you can believe in!
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I just got home and turned in the tv to see this on the news. We can't be that surprised because of the brinksmanship that's been going on, but that's crazy that S&P would downgrade us after rating so much junk in the private sector as AAA for so long.
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S&P also cited dysfunctional policymaking in Washington as a factor in the downgrade. "The effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges."
I think the tea party definitely contributed to this ^^. Quote taken from a CNN article BTW.
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I think it's the responsibility of all American citizens at this point to get informed and work out exactly who doesn't need another term. Not that that will happen of course.
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EPT
