BREAKING: Moody's places US Credit Rating on "Negative Outlook", 1st time since 1917

[Little-Acorn]

Well, well. Looks like the major credit-rating firms say we didn't fix the right problem.</SPAN>

They've actually been saying that for quite a while. We just didn't listen.</SPAN>

Tell me again, what this vaunted Budget Deal has accomplished?</SPAN>

-------------------------------</SPAN>

http://www.bloomberg.com/news/2011-08-02/u-s-aaa-rating-faces-moody-s-downgrade-on-debt-economic-slowdown-concern.html</SPAN>

U.S. Faces First Downgrade on Debt, Slowdown: Moody’s</SPAN>

by John Detrixhe - Aug 2, 2011 2:57 PM PT </SPAN>

Moody’s Investors Service said the U.S. credit rating may be downgraded for the first time on concern that fiscal discipline may ease, further debt reduction measures won’t be adopted and the economy may weaken. </SPAN>

The U.S., rated Aaa since 1917, was placed on negative outlook, New York-based Moody’s said in a statement today as it confirmed the rating. Moody’s warned on July 29 a negative outlook was “more likely” as lawmakers reduced the size of spending cuts being negotiated to win approval on a plan to lift the nation’s borrowing limit. </SPAN>

JPMorgan Chase & Co. estimated that a downgrade would raise the nation’s borrowing costs by $100 billion a year. It could also hurt the rest of the U.S. economy by increasing the cost of mortgages, auto loans and other types of lending tied to the interest rates paid on Treasuries. </SPAN>

“A downgrade is a sign that Congress is failing to address a real fiscal issue,” Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, said in an interview before the announcement. </SPAN>

Standard & Poor’s put the U.S. government on notice on April 18 that it risks losing its AAA rating unless lawmakers agree on a plan by 2013 to reduce budget deficits and the national debt. Fitch Ratings said today the U.S. is under a review as the nation’s debt burden increases at a pace that isn’t consistent with an AAA sovereign credit rating.

An increase in Treasury yields of 50 basis points would reduce U.S. economic growth by about 0.4 percentage points, JPMorgan said in a report, citing Federal Reserve research and data. </SPAN>

S&P had indicated that anything less than $4 trillion in cuts would jeopardize the U.S.’s AAA rating. </SPAN>


(Full text of the article can be read at the above URL)</SPAN>

[Dilloduck]

can we just nuke em ? We have a lot of assets that they must be forgetting.

[J.T]

Whether or not our credit rating is downgraded has nothing to do with national politics and everything to do with what best suits the long-term plans and interests of those doing the rating.

[Little-Acorn]

Whether or not our credit rating is downgraded has nothing to do with national politics and everything to do with what best suits the long-term plans and interests of those doing the rating.\


JPMorgan Chase & Co. estimated that a downgrade would raise the nation’s borrowing costs by $100 billion a year.

Right as usual, jt. :slap:

[red states rule]

Well, well. Looks like the major credit-rating firms say we didn't fix the right problem.</SPAN>

They've actually been saying that for quite a while. We just didn't listen.</SPAN>

Tell me again, what this vaunted Budget Deal has accomplished?</SPAN>

-------------------------------</SPAN>

http://www.bloomberg.com/news/2011-08-02/u-s-aaa-rating-faces-moody-s-downgrade-on-debt-economic-slowdown-concern.html</SPAN>

U.S. Faces First Downgrade on Debt, Slowdown: Moody’s</SPAN>

by John Detrixhe - Aug 2, 2011 2:57 PM PT </SPAN>

Moody’s Investors Service said the U.S. credit rating may be downgraded for the first time on concern that fiscal discipline may ease, further debt reduction measures won’t be adopted and the economy may weaken. </SPAN>

The U.S., rated Aaa since 1917, was placed on negative outlook, New York-based Moody’s said in a statement today as it confirmed the rating. Moody’s warned on July 29 a negative outlook was “more likely” as lawmakers reduced the size of spending cuts being negotiated to win approval on a plan to lift the nation’s borrowing limit. </SPAN>

JPMorgan Chase & Co. estimated that a downgrade would raise the nation’s borrowing costs by $100 billion a year. It could also hurt the rest of the U.S. economy by increasing the cost of mortgages, auto loans and other types of lending tied to the interest rates paid on Treasuries. </SPAN>

“A downgrade is a sign that Congress is failing to address a real fiscal issue,” Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, said in an interview before the announcement. </SPAN>

Standard & Poor’s put the U.S. government on notice on April 18 that it risks losing its AAA rating unless lawmakers agree on a plan by 2013 to reduce budget deficits and the national debt. Fitch Ratings said today the U.S. is under a review as the nation’s debt burden increases at a pace that isn’t consistent with an AAA sovereign credit rating.

An increase in Treasury yields of 50 basis points would reduce U.S. economic growth by about 0.4 percentage points, JPMorgan said in a report, citing Federal Reserve research and data. </SPAN>

S&P had indicated that anything less than $4 trillion in cuts would jeopardize the U.S.’s AAA rating. </SPAN>


(Full text of the article can be read at the above URL)</SPAN>

Obama said he would transform America, and damn he is doing it

[Dilloduck]

We're flat broke and don't stand a Chinaman's chance of getting out of debt. We have to keep up the facade that we can I guess. People might jump out windows.

[Little-Acorn]

Obama said he would transform America, and damn he is doing it


http://www.foxnews.com/story/0,2933,553880,00.html

"We are five days away from fundamentally transforming the United States of America..." - Barack Obama, Oct. 30, 2008


Whaddaya know. He was telling the truth!

[red states rule]

Whaddaya know. He was telling the truth!


http://www.strangepolitics.com/images/content/176597.JPG

[J.T]

We're flat broke and don't stand a Chinaman's chance of getting out of debt.

And? The nation-state must be destroyed, and this is a crucial part of the means of achieving that objective. Why do you think we stopped enforcing the borders, built the NAFTA superhighway, and have been working to bring all of of North America (under the North American Community (http://www.wnd.com/?pageId=301325)) and the world (under the U.N.) under a single standard and system of rule?

What are you, some sort of socialist (http://wiki.mises.org/wiki/Socialism:_An_Economic_and_Sociological_Analysis)? Capitalism has no vested interest in the existence or well-being of this or any other nation-state. The true Liberal (http://mises.org/liberal.asp)and capitalist knows that the continued existence of the nation-state is a barrier that must be smashed if capitalism is to succeed and, through the unrivaled rise in production and wealth creation, elevate the standard of living of all people and pave the way for a future of unprecedented prosperity and liberty.



Even the opponents of Socialism are dominated by socialist ideas. In seeking to combat socialism from the viewpoint of their special class interest these opponents... admit indirectly the validity of all essentials of socialist thought. For if it is only possible to argue against the socialist programme that it endangers the particular interests of one part of humanity, one has really affirmed socialism.... The nationalist, too, affirms Socialism, and objects only to its Internationalism. He wishes to combine Socialism with the ideas of Imperialism and the struggle against foreign nations. He is a national, not an international socialist; but he, also, approves of the essential principles of Socialism.
-Ludwig von Mises, Socialism. New Haven University Press, 1951. Pp 25-26


Rest assured that all is proceeding as planned.

[red states rule]

http://www.strangepolitics.com/images/content/177248.jpg

[Dilloduck]

And? The nation-state must be destroyed, and this is a crucial part of the means of achieving that objective. Why do you think we stopped enforcing the borders, built the NAFTA superhighway, and have been working to bring all of of North America (under the North American Community (http://www.wnd.com/?pageId=301325)) and the world (under the U.N.) under a single standard and system of rule?

What are you, some sort of socialist (http://wiki.mises.org/wiki/Socialism:_An_Economic_and_Sociological_Analysis)? Capitalism has no vested interest in the existence or well-being of this or any other nation-state. The true Liberal (http://mises.org/liberal.asp)and capitalist knows that the continued existence of the nation-state is a barrier that must be smashed if capitalism is to succeed and, through the unrivaled rise in production and wealth creation, elevate the standard of living of all people and pave the way for a future of unprecedented prosperity and liberty.



Even the opponents of Socialism are dominated by socialist ideas. In seeking to combat socialism from the viewpoint of their special class interest these opponents... admit indirectly the validity of all essentials of socialist thought. For if it is only possible to argue against the socialist programme that it endangers the particular interests of one part of humanity, one has really affirmed socialism.... The nationalist, too, affirms Socialism, and objects only to its Internationalism. He wishes to combine Socialism with the ideas of Imperialism and the struggle against foreign nations. He is a national, not an international socialist; but he, also, approves of the essential principles of Socialism.
-Ludwig von Mises, Socialism. New Haven University Press, 1951. Pp 25-26



Rest assured that all is proceeding as planned.

Never doubted it for a second---they are done taking advantage of America's wealth creation abilities and have moved on.
"to the universe--and beyond "

[red states rule]

http://media.townhall.com/Townhall/Car/b/gv080211dAPC20110802044516.jpg

[Gaffer]

Welcome to the Great Depression 2

[Dilloduck]

Starving may make people rethink our financial gifts to the rest of the world. Let the countries that can afford it handle policing and feeding the world.

[fj1200]

JPMorgan Chase & Co. estimated that a downgrade would raise the nation’s borrowing costs by $100 billion a year. It could also hurt the rest of the U.S. economy by increasing the cost of mortgages, auto loans and other types of lending tied to the interest rates paid on Treasuries.

I dispute that. Treasury rates are stupid low even with talks of a downgrade and the signing of the debt deal. 10 year rates have fallen 40 basis points in 5 days are approaching 2 year lows. We're still the best government investment deal around apparently.

[ConHog]

Starving may make people rethink our financial gifts to the rest of the world. Let the countries that can afford it handle policing and feeding the world.



I have NEVER understood our foreign policy in this regard. We are broke, and yet we borrow money to GIVE to countries who hate us.

Time to end foreign aid.

[fj1200]

Because we're a generous people.

[ConHog]

Because we're a generous people.


I think you meant to say stupid.

[fj1200]

I think you meant to say stupid.

No, but there is a difference between governmental foreign aid that may be based on misguided policy than private charity as a result of natural disasters, etc.

[ConHog]

No, but there is a difference between governmental foreign aid that may be based on misguided policy than private charity as a result of natural disasters, etc.

Yes there is, and I was speaking strictly of government aid, not private charity. I thought that was pretty clear.

[fj1200]

Yes there is, and I was speaking strictly of government aid, not private charity. I thought that was pretty clear.

It was, it hit me after I hit submit.

[ConHog]

It was, it hit me after I hit submit.



No worries. I just wanted MY own position clear. I WISH the government would give to charity more like the way we do as private groups. I don't know about you , but I am very generous, that doesn't mean that when I'm broke I'm going to go to the bank and borrow money so that I can give it to someone who is worse off than me. That just isn't good policy.

[red states rule]

http://media.townhall.com/Townhall/Car/b/gv080311dAPR20110803034517.jpg