CBO Scores "Bipartisan" Plan At Half Of S&P Required Savings; Just 2% Before 2012 Elections

Zero Hedge ^ | 08/01/2011 | Tyler Durden

[SeekAndFind]

It was only a week ago that S&P said anything under $4 trillion in deficit cuts would be an automatic downgrade for the US. So according to the CBO's just released score of the bipartisan budget, the S&P will have to cut its rating of the US in half, since the total budget cuts will be just over 50% of what S&P demanded previously. And here's the funny part: of the $917 billion in known cuts (the other $1.2 billion is factored but not even the CBO has any clue what it will look like), a whopping 2% in cuts will take places before the Obama election. 2%! This whole charade is there only to make sure the president is reelected. Oh, and of course to make sure S&P does not downgrade the US. Which is where we get back to the fun. THE FUN. Because as it turns out, that whole $4 trillion thing.... S&P was only kidding. "It appears that the perception Standard & Poor's seemed to harbour, that the U.S. needed to find a $4trn sized package in order to keep its triple A rating, is unfounded. Two credit research reports published today point to the testimony given by S&P president Deven Sharma to the Congressional House Financial Services subcommittee on Wednesday, where he seems to believe his firm has been misquoted in media reports."

There you go: to S&P $2.1 trillion (of which $1.2 trillion may never even materialize) will end up being just as good, if not better than $4 trillion. And that, ladies and gentlemen, is how a rating agency regains credibility and stuff.

The only chart from the CBO that matters:



The full CBO pamphlet can be read here

[Qbert]

“There you go: to S&P $2.1 trillion (of which $1.2 trillion may never even materialize) will end up being just as good, if not better than $4 trillion. And that, ladies and gentlemen, is how a rating agency regains credibility and stuff.”

The corruption never stops.

[ml/nj]

People need to understand what the "non-partisan" CBO is. It is made up of assorted braindead career bureaucrats. I think I know one of them who is the wife of a friend. She thinks Rush Limbaugh is Satan incarnate. And she is non-partisan."

ML/NJ

[Two Kids' Dad]

There’s no such thing as “non-partisan” when it comes to people who are involved in the workings of this country. Probably never was a truly “non-partisan” person in history, other than some fool that was 100% ignorant and out of the loop. And they’d be no help to anyone, obviously.

But the CBO is showing everyone that the plan being voted on will destroy our credit rating and will be yet another example of the destructive Dems demanding their bit up front and promising to keep to the other side of the bargain down the road, when we all know there’s no chance of that happening.

FU Congress!

FUBO!