Confirmed: US Gov officials bracing for S&P downgrade as soon as today.

[Jhhnn]

It is rather amusing that you not only cherry pick data to post but you also miss the overall point.

*I* missed the point? Can you not read? From the CNN link-

John Chambers, the head of sovereign ratings at S&P, told CNN's Anderson Cooper that the political brinkmanship over the debt ceiling proved to be a key issue, with "the U.S. government getting to the last day before they had cash-management problems."

Few governments separate the budget process from the debt-authorization process as the United States does, he noted.

And, though the budget deal that finally was reached will deliver at least $2.1 trillion in savings over the next decade, that will not suffice, he said. "It's going to be difficult to get beyond that -- at least in the near term -- and you do need to get beyond that to get to a point where the debt-to-GDP ratio is going to stabilize."

Asked who was to blame, Chambers said, "This is a problem that's been a long time in the making -- well over this administration, the prior administration."

Congress should shoulder some of the blame, he said. "The first thing it could have done is to have raised the debt ceiling in a timely manner so that much of this debate had been avoided to begin with, as it had done 60 or 70 times since 1960 without that much debate."

Chambers added that his agency's decision is likely to have a long-term impact. "Once you lose your AAA, it doesn't usually bounce back," he said.

He pointed to the decision by Congress about whether to extend the 2001 and 2003 tax cuts as one crucial area. "If you let them lapse for the high-income earners, that could give you another $950 billion," he said.

Republican brinkmanship & refusal to raise taxes, to gain revenue to close the gap are his cited reasons for the downgrade. Spin it any way you want, but that's straight from the source.

 

[Doppel]

Geithner mad http://finance.yahoo.com/news/Geith...tml?x=0&sec=topStories&pos=main&asset=&ccode=

 

[cubby1223]

*I* missed the point? Can you not read? From the CNN link-



Republican brinkmanship & refusal to raise taxes, to gain revenue to close the gap are his cited reasons for the downgrade. Spin it any way you want, but that's straight from the source.

Grow up.

It was a combination of failure in all parts of Washington.

Pointing fingers and insulting others is the primary reason why our government is dysfunctional. And you believe continuing that is the way out of the mess?

I know it makes one feel all warm and fuzzy inside to blame everyone else instead of having to look in the mirror.

We were downgraded because government is in too much debt which is because unemployment is too high which is in large part because government is not effective at creating jobs.

 

[Jhhnn]

Grow up.

It was a combination of failure in all parts of Washington.

Pointing fingers and insulting others is the primary reason why our government is dysfunctional. And you believe continuing that is the way out of the mess?

I know it makes one feel all warm and fuzzy inside to blame everyone else instead of having to look in the mirror.

We were downgraded because government is in too much debt which is because unemployment is too high which is in large part because government is not effective at creating jobs.

Heh. Clearly, Obama had been told what S&P wanted to see to avoid a downgrade, as had Repub leaders. $4T was the S&P number, and it was Obama's number, too. Repubs refused to go there, because it would have meant tax increases, and an end to their game of uproar.

They'd only agree to about half that, all cuts, no tax increases. Spin it any way you want, like I said- I just know what Chambers said, & quoted it.

Repubs have successfully framed the issue in terms of "savings", when that's not really the problem at all. The problem is *balance* between expenditures & revenue. S&P doesn't care how much the govt spends, so long as it's balanced against revenue. It's the gap they cite, not spending per se, and we all need to tell the truth about that.

 

[cubby1223]

Ahhh good ol' John Kerry, watching him talk about the debt downgrade here on Meet the Press.

To paraphrase Kerry:
"The problem we have in Washington is everyone wants to bicker, complain, and blame the other side leaving no room to compromise. Boehner went off attacking the Democrats and Obama for the debt downgrade. What is he doing? We all know it is the Republicans who destroyed our debt rating, Republicans who are destroying job growth, Republicans who wrecked the economy...."


Does no one in Washington know what the word "hypocrite" means? Yes, I fully agree the biggest problem in Washington is the bickering and insulting. But, the solution is not bickering and insulting at a louder volume!

 

[sportage]

The New blame game...WE DON'T DESERVE IT!

Love this spin by US economist.
As if crying over spilt milk will save a dollar of YOUR 401K.

Reminds me of the kid caught talking in class and sent to the principals office.
The kid slowly walks down the hall to the office crying NOT FAIR NOT FAIR.
He doesn't realize he will still end up in the principals office, regardless.

 

[sportage]

But, the solution is not bickering and insulting at a louder volume!

Actually it is.
It's time party ideology on both sides was put to the test. Dismantled, dissected, torn apart, weighted and determined which side is backed by fact and which side is not. And weigh the total sum of each and every micro dissected bits and pieces. Then toss out forever all that has no proven merit.
In other words, cut the bullshit.

 

[MomentsofSanity]

Most in the bond market did not believe it would occur. The 10 year is at record low yields. That is not indicative of pricing in a downgrade.

Comparing US debt to other sovereign debt is also a bit of apples to oranges... Or at least apples to crab apples. US debt is THE benchmark for everything.

So. How's the rates on Treasuries doing this morning?