Standard and Poors Downgrades US credit rating - per Reuters via Yahoo

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  1. Aficionada profile image82
    Aficionadaposted 12 years ago … 07261.html

    "The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday in an unprecedented reversal of fortune for the world's largest economy.

    S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government's budget deficits and rising debt burden. The move is likely to raise borrowing costs eventually for the American government, companies and consumers."

    from Reuters

  2. rebekahELLE profile image87
    rebekahELLEposted 12 years ago

    S&P also made quite a mess with their AAA ratings of subprime mortgage backed securities - do investors take their ratings seriously?

    1. Evan G Rogers profile image61
      Evan G Rogersposted 12 years agoin reply to this

      I really doubt it. The US doesn't even deserve a AA+ rating.

  3. Ralph Deeds profile image68
    Ralph Deedsposted 12 years ago

    It'll be interesting to see what the new rating will do to the Treasury bond market.

    1. Evan G Rogers profile image61
      Evan G Rogersposted 12 years agoin reply to this

      The second my mother told me I had savings bongs (my family bought some when I was too young to understand anything), I told her to give them to me and I cashed them in.

      I then bought silver.

      I made more money in the 1 year of my silver buying than I did with the 20 years of Savings Bond interest accrument.

      Bonds are worthless - they double in value every 30 years, but we have an (monetary) inflation rate of over 10% and have a (price) inflation rate over 3%

      If you take $25 and put a 3% interest rate on it for 30 years you get about $60. This means that you need to end up with $60 after the 30 year stint to keep the wealth you once had, instead of the $50 that they give you. It means you lose wealth.

      THEN - the government TAXES the interest you lost on the bond!!!!

      It's completely idiotic. Get out of the dollar, it's collapsing.

  4. Cheeky Girl profile image66
    Cheeky Girlposted 12 years ago

    Yup, that Beers guy at S&P thinks he knows it all! All we need now is Moody's and the other nits to follow suit, and there'll be a real party!

    And you're right about the sub prime mess they completely misread, rebekah. They are not entirely "Oracles" or Pearls of Wisdom. LOL!

  5. uncorrectedvision profile image60
    uncorrectedvisionposted 12 years ago

    Fitch and others also have warned that a failure to reign in spending would cause a downgrade.  These warnings were used by demagogues to force the debt ceiling issue.  The national debt was indeed the issue but raising it was not the solution, it was the trigger to the down grade.

    1. Jed Fisher profile image70
      Jed Fisherposted 12 years agoin reply to this

      The ratings agencies are just mad because the feds arrested all those inside traders and they are still investigating the ratings agencies.

      1. uncorrectedvision profile image60
        uncorrectedvisionposted 12 years agoin reply to this

        So they are all corrupt, petty and vindictive?  Wow, that must just do wonders for their hard won reputations.  I just wonder how every rating agency is full of such despicable characters and all the angels are Democrats in Washington.  Makes you think or not.

    2. American View profile image61
      American Viewposted 12 years agoin reply to this

      The down grading began last week but went un-noticed of was it ignored on purpose. Egan-Jones dropped our rating from AAA to AA. China dropped out rating fro A+ to A.  S&P, Moody droped us from AAA to AAA negative. Now S&P went further by going to AA+. Anyone could see this coming a mile away. First, we had a President crying doom and gloom saying there was no manoey in the coffers. Well, you do that on ths phone with your bank telling them you have no money in the coffers and see how fast they drop you credit rating. Second, despite the deal, anyone could see the deal was useless. Cuts of $2 trillion over 10  years begining in 2013 and 2014 and 70% of the cuts do not start till 2017. Well before we make cuts, we will have added  4 to 11 trillion dollars more in debt. So the cuts were useless and we will need to raise the debt ceiling again. Until we Balance the budget, permanent ans structual changes that will not pay down the debt but will not add to it either, redo the tax codes, and add jobs, no one will take the US serious. By the way, as in typical fashion, the President placed the blame on others as to why this happened, Even blaming S&P themseleves. Obama, for once take responsibility for your actions, just once please. Time has come for you to get serious about what is going on.

  6. 2uesday profile image67
    2uesdayposted 12 years ago

    Whoever is at fault it effects many of the other countries stock markets too -

  7. profile image61
    logic,commonsenseposted 12 years ago

    The morons that voted for the deal do not have a clue about the real world.  Anyone with a lick of brain could see they were just trying to put lipstick on a pig and did not have the courage or vision to actually deal with the root cause of the problem.  Until we get rid of the cowards and the ignorant in Congress we will continue to suffer at their hands.

  8. golfclubs4sales profile image56
    golfclubs4salesposted 12 years ago

    On Mon. Aug 1,2011 the House passed the ‘’National Debt Crisis ‘’legislation and immediately forwarded it over to the Senate.

  9. golfclubs4sales profile image56
    golfclubs4salesposted 12 years ago

    On Mon. Aug 1,2011 the House passed the ‘’National Debt Crisis ‘’legislation and immediately forwarded it over to the Senate.

  10. profile image59
    foreignpressposted 12 years ago

    If Thursday's stocks dropped 500 points and Friday was even, what will Monday bring? The S&P downgrade could have a horrific affect starting with the Asian stock market on Sunday. It could be another 500 point drop -- or more -- on Wall Street.

    1. American View profile image61
      American Viewposted 12 years agoin reply to this

      Dows reaction is hard to judge right now. There are 2 thoughts. First id that the downgrade was right on and needed for a long time. The other is S&P has no credibility as for being part of the bailout due to it's business practices. Depsnds on which wall street goes with will detemine what happens

  11. Will Apse profile image89
    Will Apseposted 12 years ago

    Iceland got itself out of a hole by telling the banks to go take a hike. They have also started borrowing money again, lol.

  12. theirishobserver. profile image60
    theirishobserver.posted 12 years ago

    Double Dip Recession on the way, why do you think Obama visited Ireland, he will need every vote he can get smile

  13. profile image0
    andycoolposted 12 years ago

    Markets in the coming week will digest the once unthinkable — the downgrade of the United States gold standard AAA rating — and the impact it will have on other credit ratings and investor confidence.

  14. Moderndayslave profile image60
    Moderndayslaveposted 12 years ago

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