Little-Acorn
09-14-2012, 04:52 PM
After cutting the U.S. credit rating from AAA to AA+ in July 2011,
and cutting it again from AA+ to AA in April 2012,
Egan-Jones has cut our credit rating once again today, from AA to AA-, on Sept. 14, 2012.
There's a pattern here somewhere.
Is it November yet?
------------------------------------------------------------
http://www.cnbc.com/id/49037337
US Credit Rating Cut by Egan-Jones ... Again
Published: Friday, 14 Sep 2012 | 3:43 PM ET
By: CNBC.com With Reuters
Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality.
The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market.
(Isn't that like saying, "The beatings will continue until morale improves"? -LA)
In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar.
In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.
In April, Egan-Jones cuts the U.S. credit rating to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt.
and cutting it again from AA+ to AA in April 2012,
Egan-Jones has cut our credit rating once again today, from AA to AA-, on Sept. 14, 2012.
There's a pattern here somewhere.
Is it November yet?
------------------------------------------------------------
http://www.cnbc.com/id/49037337
US Credit Rating Cut by Egan-Jones ... Again
Published: Friday, 14 Sep 2012 | 3:43 PM ET
By: CNBC.com With Reuters
Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality.
The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market.
(Isn't that like saying, "The beatings will continue until morale improves"? -LA)
In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar.
In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.
In April, Egan-Jones cuts the U.S. credit rating to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt.