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

D

Darwin333

Lifer
I don't usually post rumors nor do I usually listen to much of the bullshit said on CNBC but a few minutes ago one of the reporters said that "key Government officials" are bracing for a downgrade in the US credit rating from S&P that could come as early as today. I figured something that big warranted a thread.

After the week the market has had this could get real bad. On top of that is the huge problems in Italy (and the looming problems in Greece and to a lesser extent Portugal and Spain) that if they aren't able to contain could massively damage the world economy. Looks like Italy is doing some damage control and moving up their timeline on spending cuts and the ECB is getting involved today as well. Hopefully they can get things under control but if the the Euro Zone blows up and we get downgraded it could potentially be a "perfect storm" of sorts. Hang on to your asses.

I will post more info as I find it.

Again, the credit downgrade has not yet been confirmed.

CNBC now has it on their website.

http://www.cnbc.com/id/44039103


Confirmed. S&P downgrades US to AA+ with a negative outlook going forward 8/5/2011
 
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Article from CNBC

U.S. government officials are bracing for the rating agency Standard & Poor’s to downgrade the country’s credit as early as this evening or take other possible action, according to someone familiar with the matter.



Throughout Friday, markets were rife with speculation that S&P, which has had a negative outlook on the U.S. since April 18, would downgrade the country’s credit from its current triple-A level.

On July 14, S&P put the government on a credit watch with negative implications, meaning there was at least a one in two chance the U.S.’s long-term debt would be downgraded within 90 days.

An S&P spokesman declined to comment on any possible plans for a downgrade or statement later Friday.
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Not a big deal. Going from AAA to AA hasn't statistically affected the interest rates of many countries, and it usually takes time for any potential negative effect to rear its head, by which point we could be in another boom.
 
First said:
Not a big deal. Going from AAA to AA hasn't statistically affected the interest rates of many countries, and it usually takes time for any potential negative effect to rear its head, by which point we could be in another boom.
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It would remove a ton of buyers from the market due to the rules a lot of funds have. We kinda need all the buyers we can get right now.
 
Vote of no confidence in the economic policies GOP has been ramming down America's throat under threat of forcing a default.
 
Darwin333 said:
It would remove a ton of buyers from the market due to the rules a lot of funds have. We kinda need all the buyers we can get right now.
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Meh. The Chinese can't completely stop buying our paper, because we'd have to double taxes and couldn't afford to buy their stuff. For the rest of it, we now have this new thing where the fed creates money, loans it to its member banks, and they loan it to the government. It's a perpetual motion machine. Just listen to the left; not only can we continue borrowing more and more money forever, we HAVE to continue borrowing more and more money forever.
 
Darwin333 said:
Not exactly the first thing that came to my mind...
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Well, we were told by that Fool, Bobo, the Post Turtle, that if we would just increase the Debt Ceiling all would be well. There would be no crash in the stock market and no down grade of this country's credit rating.

Just another lie.

You would think we would be use to his lies by now.

Oh, yes, the reason I said "good" is because that will make what we borrow more expensive so maybe we will borrow less? Wouldn't that be great.....to live within our means.
 
First said:
Not a big deal. Going from AAA to AA hasn't statistically affected the interest rates of many countries, and it usually takes time for any potential negative effect to rear its head, by which point we could be in another boom.
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You don't know much about the bond markets, do you?
 
senseamp said:
Vote of no confidence in the economic policies GOP has been ramming down America's throat under threat of forcing a default.
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Even when they come right out and say a downgrade would be the result of the government not enacting any meaningful reform or cutting the suicide spending we're engaged in, you still come out and insist it's because we're not spending enough.

How many trees have you felled with all that hacking?
 
PeshakJang said:
You don't know much about the bond markets, do you?
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Actually he knows more than you.

When Japan was downgraded the Nikkei finished the day up. Borrowing costs have not risen (they have contracted) and liquidity is as high or higher than ever in JGB's.

The crossover from AA- to A+ is the most painful in the sovereign space as there are still many pensions in Europe that can't hold below AA- paper.
 
senseamp said:
Vote of no confidence in the economic policies GOP has been ramming down America's throat under threat of forcing a default.
Click to expand...

And the Democrats will spend us into oblivion with their heads in the sand and MOAR REVENUE!111!one! tattooed on their asses.

The two party system is broken, it's a lose-lose. Eventually we'll lose badly enough that the Republican and Democrat parties will be extensively reformed or replaced. As it always has.
 
I blame Raygun for this shit. Actually I blame Raygun's shithead supporters for this shit. Including that shithead Obama who actually idolizes Reagan. He started this debt fiasco and everyone supported him on it even after all the warning of how detrimental it will be to the future generations, including by his own VP Bush Sr. who called it voodoo economics (Increase debt increase spending). It was so popular that Bush Sr., despite knowing how disastrous it would be, did it himself during his presidency.

Ah the American people. Voting for shit sandwiches since 1980.
 
disappoint said:
I blame Raygun for this shit. Actually I blame Raygun's shithead supporters for this shit. Including that shithead Obama who actually idolizes Reagan. He started this debt fiasco and everyone supported him on it even after all the warning of how detrimental it will be to the future generations, including by his own VP Bush Sr. who called it voodoo economics (Increase debt increase spending). It was so popular that Bush Sr., despite knowing how disastrous it would be, did it himself during his presidency.

Ah the American people. Voting for shit sandwiches since 1980.
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Oh, for the halcyon days of the Carter years!

Moron.
 
Embarrassing (from the WSJ):

"S&P sent downgrade warning to Obama administration, but is reconsidering after Treasury found math mistake in the warning."
 
werepossum said:
Oh, for the halcyon days of the Carter years!

Moron.
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Fuck you shithead. You know less than nothing. Carter passed legislation against oil companies who wanted to raise prices to increase profits so they could rob shithead lemmings like you. For that they vilified him any way they could because they control everything. Of course these pussy presidents since then allow oil companies to do whatever they want hence the record profits of those oil companies today at your expense. But you go right ahead projecting your idiocy on me if it will make you feel better.
 
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jman19 said:
Embarrassing (from the WSJ):

"S&P sent downgrade warning to Obama administration, but is reconsidering after Treasury found math mistake in the warning."
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Hilarious! When the guy who can't operate Turbo Tax finds mistakes in your math . . .

disappoint said:
Fuck you shithead. You know less than nothing. Carter passed legislation against oil companies who wanted to raise prices to increase profits so they could rob the shithead lemmings like you. For that they vilified him any way they could because they control everything. Of course these pussy presidents since then allow oil companies to do whatever they want hence the record profits of those oil companies today at your expense. But you go right ahead projecting your idiocy on me if it will make you feel better.
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And we all know that the key to prosperity is punishing companies that want to make a profit.

Good luck with that 2012 Nut Party platform, punishing the oil companies that "control everything" and better quality aluminum foil hats for everyone! Maybe you can even get mandatory automobiles that run on water - everyone knows the oil companies are sitting on that technology to increase profits!

My apologies to morons everywhere for the less than flattering comparison.
 
werepossum said:
Hilarious! When the guy who can't operate Turbo Tax finds mistakes in your math . . .


And we all know that the key to prosperity is punishing companies that want to make a profit.

Good luck with that 2012 Nut Party platform, punishing the oil companies that "control everything" and better quality aluminum foil hats for everyone! Maybe you can even get mandatory automobiles that run on water - everyone knows the oil companies are sitting on that technology to increase profits!

My apologies to morons everywhere for the less than flattering comparison.
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It isn't punishing them to prevent them from gouging prices adding instability to an already volatile economy. Increasing energy prices which lead to increasing prices across the board leaving less money in the hands of consumers who are already finding it difficult to make ends meet.

They were already making a tidy profit hand over fist, but that isn't enough for the greedy crowd is it?

Nice try projecting tin foil water powered car bullshit on me but I don't buy that baloney.

You should apologize for being the braindead lemming the media loves to brainwash with bullshit stories to keep everyone from knowing the truth. The haves want more than their fair share and know exactly how to rob everyone else to get it, and keep it. All the while brainwashing morons like you into believing it's all for your own good.

How's that trickle down bullshit sandwich taste? Will you ever think for yourself or keep eating the shit sandwich they put on your plate? I won't hold my breath you'll ever tell the truth if you even find out what it is.
 
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disappoint said:
Fuck you shithead. You know less than nothing. Carter passed legislation against oil companies who wanted to raise prices to increase profits so they could rob shithead lemmings like you. For that they vilified him any way they could because they control everything. Of course these pussy presidents since then allow oil companies to do whatever they want hence the record profits of those oil companies today at your expense. But you go right ahead projecting your idiocy on me if it will make you feel better.
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"Fuck you shithead". That's all you've got? You expect us to read this and be swayed by your compelling logic and air tight arguments? This is your scathing rhetoric? This is the collimation of your years of studying economic policy and global markets, all of that knowledge distilled down to three words, and you couldn't even come up with three good ones?
 
werepossum said:
Hilarious! When the guy who can't operate Turbo Tax finds mistakes in your math . . .
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LMAO!!

Standard & Poor's told the U.S. government Friday afternoon that it was preparing to downgrade the U.S.'s triple-A credit rating but U.S. officials notified the S&P that they had made a mathematical error that was off by "trillions," an administration source told CNBC.



Apparently the error was in the calculation of the U.S. debt-to-GDP ratio over time and was based on a misreading of what the correct congressional baseline was.
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Pardon the pun but something isn't "adding up".
 
disappoint said:
It isn't punishing them to prevent them from gouging prices adding instability to an already volatile economy. Increasing energy prices which lead to increasing prices across the board leaving less money in the hands of consumers who are already finding it difficult to make ends meet.

They were already making a tidy profit hand over fist, but that isn't enough for the greedy crowd is it?

Nice try projecting tin foil water powered car bullshit on me but I don't buy that baloney.

You should apologize for being the braindead lemming the media loves to brainwash with bullshit stories to keep everyone from knowing the truth. The haves want more than their fair share and know exactly how to rob everyone else to get it, and keep it. All the while brainwashing morons like you into believing it's all for your own good.

How's that trickle down bullshit sandwich taste? Will you ever think for yourself or keep eating the shit sandwich they put on your plate? I won't hold my breath you'll ever tell the truth if you even find out what it is.
Click to expand...

Out of curiosity, are you aware that a very large portion of our oil is not sold to us by these big oil companies you speak of and those companies don't exactly set the price of a global commodity?
 
Heard S&P is now "reconsidering". Probably giving in to political pressure.
These rating agencies are a joke.
 
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