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Govt officials: US expecting S&P downgrade -- based on "serious mistake" in analysis*
ABC News ^ | 5 Aug 2011

Posted on 08/05/2011 5:04:57 PM PDT by mandaladon

Two government officials tell ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value.

Official reasons given, one official says, will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited. The official was unsure if the bond rating would be AA+ or AA.

A third official says that S&P made a "serious mistake" in its analysis, "based on flawed math and assumptions," so the Obama administration is pushing back. But even though "S&P has acknowledged its numbers are wrong, it's unclear what they're going to do.," the official said.

S&P refused to comment.

Because of the pushback, the Obama administration is preparing for the downgrade but is not 100% positive it’s going to happen, officials said. And if the downgrade does happen, officials are not sure when it will happen.

Before ratings agencies issue a downgrade, there is often some back and forth that goes on behind the scenes. Treasury Department officials have been making the case for months that S&P should not downgrade US debt.

(Excerpt) Read more at blogs.abcnews.com ...


TOPICS: Breaking News; Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: 0bama2ff; aa; aaa; aaplus; creditrating; cutcapbalance; debt; debtceiling; debtlimit; downgrade; economy; geithner; obama; obamanomics; rating; ratingsdowngrade; ratingservices; standardpoors; treasury; triplea; usa2aa
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WTF! I thought Obama wasn't going to let this happen.
1 posted on 08/05/2011 5:05:00 PM PDT by mandaladon
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To: mandaladon

Idiots! On both sides!


2 posted on 08/05/2011 5:07:13 PM PDT by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: mandaladon

A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited.———

Doesn’t matter that it’s not the truth, it will be what’s cited...


3 posted on 08/05/2011 5:07:30 PM PDT by Freddd (NoPA ngineers.)
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To: mandaladon

What a surprise, they didn’t find out until document dump night.


4 posted on 08/05/2011 5:08:50 PM PDT by skr (May God confound the enemy)
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To: mandaladon

The analysis? The analysis is that the fedgov is not serious about tackling debt. Adding $10+ trillion in the next decade certainly won’t help.


5 posted on 08/05/2011 5:09:26 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: mandaladon

They were the last people on Earth to figure this out.


6 posted on 08/05/2011 5:09:33 PM PDT by Huskrrrr
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To: mandaladon

Flawed math has nothing to do with Republicans not accepting tax hikes.


7 posted on 08/05/2011 5:10:42 PM PDT by skr (May God confound the enemy)
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To: mandaladon
I thought Obama wasn't going to let this happen.

He lied.

8 posted on 08/05/2011 5:11:25 PM PDT by EGPWS (Trust in God, question everyone else)
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To: mandaladon

The negotiation is about coordinating to pin it on the Republicans.

Remember, Obama couldn’t care less about the country. He is concerned about his power and his ideological goals.

If the Obama regime can negotiate with S&P to cite Republican intransigence on taxes as the reason for the downgrade, then a downgrade helps Obama.

If not, then a downgrade hurts Obama. That is the only calculus that matters for Obama.

And anyway, anyone paying attention to the debt, liabilities, revenues and economic deterioration does not need S&P to tell them how precarious the government’s financial situation is.


9 posted on 08/05/2011 5:12:17 PM PDT by Meet the New Boss
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To: mandaladon

Just got this tweet

BreakingNews Breaking News
S&P reconsiders US government debt downgrade after feds say raters’ calculations off by ‘trillions’ - CNBC


10 posted on 08/05/2011 5:12:39 PM PDT by Sarah Barracuda
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To: mandaladon

Cut the fricken spending, stupid!! Meanwhile, the incompetent imbeciles Obama and Geithner continue borrowing, printing and expanding the government!! And the impotent Republicans limply acquiesce.


11 posted on 08/05/2011 5:13:03 PM PDT by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: mandaladon

Tea party candidates fault...somehow.


12 posted on 08/05/2011 5:14:13 PM PDT by ZX12R (FUBO GTFO 2012 !)
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To: skr

Flawed math has nothing to do with Republicans not accepting tax hikes.

Are you being “unexpectedly” smart?


13 posted on 08/05/2011 5:14:28 PM PDT by marstegreg
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To: mandaladon
WTF! I thought Obama ...

WTF, as in Winning The Future? No?

14 posted on 08/05/2011 5:14:46 PM PDT by Don Carlos (Rope futures are looking good. Buy!)
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To: mandaladon
Anybody with half a brain and one eye open saw this coming...

This "deal" fooled nobody who actually knows what the hell is going on

The boat is taking on water and this deal just slowed the sinking by a few minutes.

One positive note if they really do downgrade us, MAYBE Congress will actually get their shi* together and actual start to govern according to the best interest of the nation instead of their party.(mostly libtards)

15 posted on 08/05/2011 5:16:42 PM PDT by Popman (Obama. First Marxist to turn a five year Marxist plan into a 4 year administration.)
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To: EGPWS
He lied.
16 posted on 08/05/2011 5:18:47 PM PDT by Cheerio (Barry Hussein Soetoro-0bama=The Complete Destruction of American Capitalism)
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To: mandaladon
Oh, S&P has commented all right:S&P Reconsiders U.S. Downgrade, Unidentified Official Tells CNN

"Ya shoor ya don't wanna reconsidah? I'd hate fuh sumthin unforchoonit to befalls ya...."

17 posted on 08/05/2011 5:19:27 PM PDT by _a_0_0_
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To: Freddd

Since S&P’s first comments and continuing comments is NOT about “deficit reduction” but reduction in the US actual debt obligations.... that is a reduction in the debt ceiling... one can surmise that this ENTIRE news item is

PURE PROPAGANDA to tee up blaming republicans.

This is straight from the playbook. S&P has been saying for some time, as has Moody’s that it is the DEBT.

The “deficit” is a govt. term to describe the difference between what the govt takes in in taxes vs. what it cannot control— ridiculous spending. Since the revenue, even IF taxes are raised will not be enough to enable the US to meet its debt obligations... S&P will downgrade.

obama and fellow marxists are gaming this. Pure BS.


18 posted on 08/05/2011 5:19:33 PM PDT by John S Mosby (Sic Semper Tyrannis)
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To: Popman
MAYBE Congress will actually get their shi* together and actual start to govern according to the best interest of the nation instead of their party.(mostly libtards)

Only when there is nothing left but smoking ruins. And then they will blame the tea party and Sarah Palin.
19 posted on 08/05/2011 5:21:21 PM PDT by ZX12R (FUBO GTFO 2012 !)
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To: mandaladon

Sounds like Obama’s team is playing political games.

I’ll be interested in whether S&P goes along with this.


20 posted on 08/05/2011 5:22:08 PM PDT by Soul Seeker ( I was there when we had the numbers, but didn’t have the pThey may feel bettrinciples.---Jim DeMin)
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To: mandaladon

Another part of this PR push by obambi and company is to
DISCREDIT the rating agencies as being “out of touch” with examples being “they didn’t see AIG etc before TARP” .

When you have a govt. run by banker/fedreservists, then you can game the credit raters.

This is just like the property appraiser who is “preferred” by a mortgage bank because they “deliver the appraisal amount needed for the loan” . obama is trying to game the raters... cause they knew this was coming.


21 posted on 08/05/2011 5:22:20 PM PDT by John S Mosby (Sic Semper Tyrannis)
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To: Meet the New Boss

Republicans give away the store to avoid being blamed and then get blamed anyway. Just don’t ask then to learn from history or their mistakes. It is a violation of both the DC and RINO Codes not to keep doing the same thing over and over while expecting different results.


22 posted on 08/05/2011 5:22:43 PM PDT by Fantasywriter
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To: mandaladon
Any of this sound familiar???

But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

Maybe it's what they're afraid of (Cloward & Piven, Soros, SEIU, Acorn, Maurice Strong, Van Jones, Muslim Brotherhood, Weather Underground, UN Agenda 21, ...)???

23 posted on 08/05/2011 5:24:24 PM PDT by Errant
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To: Popman

Indeed, reminds one of the guys fishing in the river, and a mocassin lands in the boat (the debt) and one guy kills it by shooting with a shotgun, blowing a hole in the boat and sinking it. That’s the debt deal.

Once the boat sinks, here come the gators... and that is what is coming most likely.


24 posted on 08/05/2011 5:25:00 PM PDT by John S Mosby (Sic Semper Tyrannis)
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To: Freddd

will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction.

#1 Truth be told, the debt ceiling had nothing to do with any of this.

#2 Truth be told, they want 4T in cuts...as a down payment.

#3 Truth be told, Pelosi: My Deficit Committee Members Will Oppose All Entitlement Benefit Cuts, http://www.freerepublic.com/focus/bloggers/2757721/posts?page=32#32

#4 Truth be told, the Democrats ran without a budget for how many YEARS?

#5 Truth be told, the Republicans are responsible only for not making every attempt to stop them, up to and including causing them to fail to meet the requirements to hold a vote. Walked Out.


25 posted on 08/05/2011 5:26:17 PM PDT by EBH (God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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To: Jim Robinson
"And the impotent Republicans limply acquiesce."

While McConnell, Boehnor, McCain and the rest gleefully pat themselves on the back beleiving this crap that they were the winners. The reality is that "We The People" were the ones rolled again.

Many don't want to believe it but Sarah's presentation of "contested primaries" may very well be the template of our refounding. If we can hold out that long.

26 posted on 08/05/2011 5:26:33 PM PDT by mazda77
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To: mandaladon

Obama owns this downgrade.


27 posted on 08/05/2011 5:26:33 PM PDT by plain talk
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To: mandaladon

I think someone is playing serious political games with the rating here, this is Govt interference, if its blatant complicit scaremongering, someone needs to be held to account.


28 posted on 08/05/2011 5:28:05 PM PDT by sunmars
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To: John S Mosby

Yes, tht’s clear. S&P wants to downgrade. They cited the reasons why months in advance. It’s fairly obvious Obama is leaning on them not to do it and if they do it to play along with the meme that his administration has nothing to do with it.

I’ve moved on from S&P and the other agencies.

It’s becoming clear the market (somewhat) and various businesses are factoring in the reality of our circumstances despite the gutlessness of anyone in DC to own up to our problems. Blackmail and playing with numbers isn’t going to magically going to create enough jobs and growth to help him next year. and tis time they can’t crash the market around the election because it won’t help him.


29 posted on 08/05/2011 5:28:22 PM PDT by Soul Seeker ( I was there when we had the numbers, but didn’t have the pThey may feel bettrinciples.---Jim DeMin)
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To: mandaladon
The old Friday Night bad news dump.
30 posted on 08/05/2011 5:28:59 PM PDT by McGruff (I am Sarah Palin)
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To: _a_0_0_
"Ya shoor ya don't wanna reconsidah? I'd hate fuh sumthin unforchoonit to befalls ya...."

S&P executives better not be seen in Chicago...


31 posted on 08/05/2011 5:29:31 PM PDT by COBOL2Java (Obama is the least qualified guy in whatever room he walks into.)
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To: mandaladon
Sounds like the S&P is run by a BUNCH OF DEMOCRATS !!

Another vote of confidence for Obama & his Czars ....way to go Commies !!

32 posted on 08/05/2011 5:31:00 PM PDT by W-Girl
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To: ZX12R
Only when there is nothing left but smoking ruins. And then they will blame the tea party and Sarah Palin

Oh' that's a given......I did say MAYBE

I do think a lot of Americans are figuring out the politicians in DC sound like the teacher in Charlie Brown cartons.......all they hear blah. blah, blah

33 posted on 08/05/2011 5:33:51 PM PDT by Popman (Obama. First Marxist to turn a five year Marxist plan into a 4 year administration.)
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To: mandaladon

why didn’t the republicans bring this up?


34 posted on 08/05/2011 5:39:36 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
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To: mandaladon
Like the FAA, just another diversionary manufactured crisis...Does anyone still remember the Dow dropping 698.63 points this week?


35 posted on 08/05/2011 5:40:18 PM PDT by darkwing104 (Lets get dangerous)
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To: mandaladon

Yep, Standard and Poor’s doesn’t know how to do math! That’s right, bad math!

Nor do they know how to construct an economic model. Probably the model is “flawed” because it makes realistic assumptions about (no) U.S. economic growth, (no) jobs growth, (giant) deficit growth, and (no) Federal revenue growth. You know, a model without Obama’s special rose-colored 3D rainbow and unicorn glasses.

And “pushback” means Obama has released the Federal fascist hounds to threaten and intimidate S&P to get them to “change” their minds. You know, just like in Venezuela!


36 posted on 08/05/2011 5:41:53 PM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: mandaladon

Apparently we have just been downgraded

BreakingNews Breaking News
Credit rating agency S&P downgrades US debt from AAA, first debt downgrade in US history - AP


37 posted on 08/05/2011 5:42:55 PM PDT by Sarah Barracuda
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To: Jim Robinson

Idiots! On both sides!
yep.
but, Moody’s and Standard and Poors both said it wasn’t the debt ceiling. it was the spending.
they said it would required cuts of at least 4 trillion to avoid the downgrade.

IF Boehner had stood his ground, and gotten even that minimum,
there wouldn’t be a downgrade at all.
(and probably not the Stock crash and gold boom this week.)

He could have helped save America. Instead he sold it down the river.


38 posted on 08/05/2011 5:51:41 PM PDT by Elendur (It is incumbent on every generation to pay its own debts as it goes. - Thomas Jefferson)
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To: mandaladon

Cluster-blank good for nothing worthless communists in DC are killing this nation.


39 posted on 08/05/2011 5:52:01 PM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: Elendur

It’s been lowered from AAA to AA+ it’s all over twitter now.


40 posted on 08/05/2011 5:52:30 PM PDT by Mmogamer (I refudiate the lamestream media, leftists and their prevaricutions.)
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To: mandaladon
A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited.

I cannot imagine S&P getting involved in partisan political finger-pointing, especially given how much back-and-forth negotiating goes on for these budget deals.

I think it is more likely that the medium (ABC News) is the culprit.

If the media is slanted, it does not matter who the source is. Some wino on K Street could be the "source."

Most likely, the White House is the source, or the overactive imagination of some ABC News editor.

41 posted on 08/05/2011 5:52:50 PM PDT by SteveH (First they ignore you. Then they laugh at you. Then they fight you. Then you win.)
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To: Elendur

and certainly Obama and Reid KNEW it before the bill passed.

and i’ll bet money, that BOEHNER AND MCCONNELL did too !!!


42 posted on 08/05/2011 5:53:07 PM PDT by Elendur (It is incumbent on every generation to pay its own debts as it goes. - Thomas Jefferson)
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To: Sarah Barracuda

Fox is saying it’s done.


43 posted on 08/05/2011 5:54:37 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: Sarah Barracuda

Reuters -
U.S. loses AAA credit rating from S&P
http://www.freerepublic.com/focus/news/2759333/posts


44 posted on 08/05/2011 5:55:08 PM PDT by NormsRevenge (Semper Fi ... Godspeed .. Monthly Donor Onboard .. Obama: Epic Fail or Bust!!!)
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To: Sarah Barracuda
first debt downgrade in US history

Another first for the first (half black) president. Not counting Bill Clinton.

45 posted on 08/05/2011 5:55:16 PM PDT by McGruff (I am Sarah Palin)
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To: catnipman

And “pushback” means Obama has released the Federal fascist hounds to threaten and intimidate S&P to get them to “change” their minds. You know, just like in Venezuela!
///
and Italy.
the Italian police raided the offices of Moody’s and Standard & Poors.


46 posted on 08/05/2011 5:56:00 PM PDT by Elendur (It is incumbent on every generation to pay its own debts as it goes. - Thomas Jefferson)
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To: McGruff
first debt downgrade in US history

Hope.......Change.......

47 posted on 08/05/2011 6:08:55 PM PDT by concerned about politics ("Get thee behind me, Liberal")
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To: concerned about politics

CHANGE you can believe in

He did promise to fundamentally change the economy

YES WE CAN!


48 posted on 08/05/2011 6:13:36 PM PDT by silentknight
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To: Jim Robinson
Treasury Department officials have been making the case for months that S&P should not downgrade US debt.

The above proves this was an issue long before the Republicans held out for spending decreases.

Furthermore, which would cause you to be questioned: (1) Getting control of your spending, or (2) Asking for more credit so you could continue your big-spending ways?

Obama, of course, knew this was coming, as the above quote indicates, and picked this debt ceiling media fight on purpose in order to shift the blame or at least to share it.

49 posted on 08/05/2011 6:20:28 PM PDT by xzins (Retired Army Chaplain and Proud of It! True Supporters of our Troops PRAY for their VICTORY!)
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To: mandaladon

Trust in the Lord with all your heart.
He’s the only one who can save us now.


50 posted on 08/05/2011 6:27:52 PM PDT by deltaromeo11 (Luke 16:31, Gen 7:16)
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