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 ...
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.
and certainly Obama and Reid KNEW it before the bill passed.
and i’ll bet money, that BOEHNER AND MCCONNELL did too !!!
Fox is saying it’s done.
Reuters -
U.S. loses AAA credit rating from S&P
http://www.freerepublic.com/focus/news/2759333/posts
Another first for the first (half black) president. Not counting Bill Clinton.
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.
Hope.......Change.......
CHANGE you can believe in
He did promise to fundamentally change the economy
YES WE CAN!
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.
Trust in the Lord with all your heart.
He’s the only one who can save us now.
Yeah, a “serious mistake” in analysis of the ballots when Americans voted in 2008
"Cut, Cap & Balance" with it's $4 trillion on "cuts" would've given the ratings agencies what they were looking for.
Heck of a job Reid, Obama!
I heard Geithner’s on his way out anyway so it likely doesn’t make much difference to him. Trouble is this will play out in states and communities who get federal funding....trickle down and all that.
>> Idiots! On both sides!
As far as I’m concerned, they’re all on the other side save the TEA team.
Americans can put up with a lot of things, but humiliation isn’t one of them.
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.
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Republicans were afraid to stick to their guns and insist on real cuts because they were afraid they would get blamed.
Looks like they are going to get stuck with the blame anyway - If Americans are stupid enough to swallow the Obama BS blame game.
Yes! Yes! Let’s put all of our bets on Obamaponzinomics, since that bastards track record is so good. Bush’s fault, S & P’s fault, Tea Party’s fault, Conservatives fault, negotiation time length’s fault, Rich People’s fault,......it is everyone’s fault except the people in this damn administration who has the decision-making authority and responsibility. There is not an honest man in entire bunch.
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