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S&P Downgrades U.S. Debt Rating Press Release (Boehner-McConnell FAILURE)
Wall Street Journal ^ | 8/5/11 | S&P

Posted on 08/05/2011 5:58:18 PM PDT by jimbo123

Standard & Poor’s took the unprecedented step of downgrading the U.S. government’s “AAA” sovereign credit rating Friday in a move that could send shock waves through global. The following is a press release from Standard & Poor’s:

– We have lowered our long-term sovereign credit rating on the United States of America to ‘AA+’ from ‘AAA’ and affirmed the ‘A-1+’ short-term rating.

– We have also removed both the short- and long-term ratings from CreditWatch negative.

– The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.

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


TOPICS: News/Current Events
KEYWORDS: aa; aaa; aaplus; creditrating; cutcapbalance; debt; debtceiling; debtlimit; downgrade; economy; geithner; obama; obamanomics; ratingservices; standardpoors; treasury; triplea; usa2aa
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Standard & Poor’s took the unprecedented step of downgrading the U.S. government’s “AAA” sovereign credit rating Friday in a move that could send shock waves through global. The following is a press release from Standard & Poor’s:
1 posted on 08/05/2011 5:58:20 PM PDT by jimbo123
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To: jimbo123

This will cost all of us, like a tax hike


2 posted on 08/05/2011 6:01:16 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: jimbo123

yep...nobody saw that one coming...

At least they waited until after Premier Hussein’s birthday...


3 posted on 08/05/2011 6:01:35 PM PDT by Bean Counter ( The fit is hitting the shan....)
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To: jimbo123
Not to worry. Bloomberg says "S&P Reconsiders U.S. Downgrade, Unidentified Official Tells CNN"

Interesting happenings.

4 posted on 08/05/2011 6:02:02 PM PDT by _a_0_0_
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To: jimbo123

Time to impeach the POS!


5 posted on 08/05/2011 6:02:09 PM PDT by immadashell
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To: jimbo123
"The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics."

That almost sounds like something one of those TeaParty Terrorists might say.

6 posted on 08/05/2011 6:02:09 PM PDT by gorush (History repeats itself because human nature is static)
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To: jimbo123

The move came even though the Treasury Department said that it had found a math error in the firm’s calculations of deficit projections, according to a person familiar with the matter................LOL...Barry and Timmy trying to teach S&P about math errors??


7 posted on 08/05/2011 6:02:25 PM PDT by milwguy
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To: GeronL

Our debt just went into outer space.


8 posted on 08/05/2011 6:02:31 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: jimbo123

Just had to pass that debt ceiling increase or we’d lose our AAA rating! Good thing we did! /S HEAVY


9 posted on 08/05/2011 6:04:07 PM PDT by Bushbacker1 (I miss President Bush greatly! Palin in 2012! 2012 - The End Of An Error! (Oathkeeper))
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To: GeronL

This will be the end of America as we know it. Bonds will now be devalued and interest rates are going up. Many people just hanging on to their homes and minimum credit card payments will fall off the cliff. There is no safe place to put your money as the bond market is now going to fall.


10 posted on 08/05/2011 6:04:38 PM PDT by dougiefresh
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To: jimbo123

Nero fiddles while Rome burns. Odummys failure is now complete.


11 posted on 08/05/2011 6:04:47 PM PDT by mardi59 (T)
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To: GeronL

This will be the end of America as we know it. Bonds will now be devalued and interest rates are going up. Many people just hanging on to their homes and minimum credit card payments will fall off the cliff. There is no safe place to put your money as the bond market is now going to fall.


12 posted on 08/05/2011 6:04:47 PM PDT by dougiefresh
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To: milwguy

Barry, Timmy, Johnny, Mitchy, Nancy and Harry are going to give S&P a lesson in Kenyan Economics.


13 posted on 08/05/2011 6:04:55 PM PDT by jimbo123
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To: Terry Mross

What’s the problem? It just makes it harder to go into debt. I see it as a good thing. Take the crack away from the addict.


14 posted on 08/05/2011 6:05:07 PM PDT by refermech
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To: milwguy

Timmy must have been using his “special” liberal version of Turbo Tax again...

Debt and unbridled spending has consequences..the can being kicked down the road just fell into the well.


15 posted on 08/05/2011 6:05:19 PM PDT by rolling_stone
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To: milwguy
LOL...Barry and Timmy trying to teach S&P about math errors??

Yep! Using the Turbo-Tax method!

16 posted on 08/05/2011 6:05:37 PM PDT by Bushbacker1 (I miss President Bush greatly! Palin in 2012! 2012 - The End Of An Error! (Oathkeeper))
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To: jimbo123
An historic precedent for an historic president.

Banana splits for everyone !

17 posted on 08/05/2011 6:05:42 PM PDT by justa-hairyape
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To: jimbo123

Before these last few years, I never thought I’d see the day when something like this could happen. I honestly and truly didn’t.

I don’t claim to be an expert on subject, of course. But it seems to me, even if we get the rating back in the future, the unshakeable certainty and “invincibility” of the U.S.’s fiscal reputation is gone forever.


18 posted on 08/05/2011 6:06:30 PM PDT by DemforBush (Serpentine, Shel! Serpentine!)
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To: refermech
Take the crack away from the addict.

Actually the crack just became more expensive.

19 posted on 08/05/2011 6:07:11 PM PDT by justa-hairyape
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To: jimbo123

Don’t worry, the Rino trolls are on it. They defeated the hobbits and are on the move to fix everything with Dear Reader. What we need is more welfare and food stamps. /s/


20 posted on 08/05/2011 6:07:23 PM PDT by SaraJohnson
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To: jimbo123
I can't resist.


21 posted on 08/05/2011 6:07:25 PM PDT by McGruff (I am Sarah Palin)
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To: Bean Counter

“yep...nobody saw that one coming...”

Agreed. I was totally faked out. It’s almost as though those crazy radical tea partiers were right.


22 posted on 08/05/2011 6:09:01 PM PDT by hauerf
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To: jimbo123

We needed that two by four on side of the head. But, it will be lost on progressives.


23 posted on 08/05/2011 6:09:40 PM PDT by Calusa (The pump don't work cause the vandals took the handles. Quoth Bob Dylan.)
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To: jimbo123

Congratulations to President 0bama, Weeper Boehner, Harry Ried, Mitch McConnell and traitors like Allen West and Kristi Noem. Your bill was a huge success! Keep up the good work. America is on the rebound.


24 posted on 08/05/2011 6:10:02 PM PDT by GR_Jr.
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To: _a_0_0_

S&P Reconsiders U.S. Downgrade, Unidentified Official Tells CNN”

Must have got a phone call and a dead fish in the mail


25 posted on 08/05/2011 6:10:55 PM PDT by dynachrome ("Our forefathers didn't bury their guns. They buried those that tried to take them.")
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To: jimbo123; All
Piss off. This is NOT Boehner's fault and it isn't McConnell's fault.

Let me remind you and all the rest of the Republican party bashers here: THE LAST TIME THE REPUBLICANS CONTROLLED THE EXECUTIVE AND LEGISLATIVE BRANCH, the annual deficit was around $170B. Under Hussein and the Demon-rats, it is $1.6T.

The problems with the Republicans are known and can be dealt with...BUT THE DISEASE AFFLICTING THE COUNTRY IS OBAMANOMICS AND LIBERALISM...IT has been the problem for two years, and has resulted in this debacle.

(No offense, Jimbo, but this is NOT the fault of Republicans...they were working toward a solution, however imperfect. The entire reason we're in this mess is NOT from Boehner and McConnell.)

26 posted on 08/05/2011 6:11:03 PM PDT by Recovering_Democrat
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To: jimbo123
Standard & Poor's had warned that the nation's credit rating would be subject to a downgrade without a credible deficit-reduction package worth $4 trillion over 10 years. The package agreed to by congressional negotiators falls well short of that mark.

MSNBC

27 posted on 08/05/2011 6:11:24 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: jimbo123

The cost of lending just went up. Greatly.

Well, at least they were nice enough to wait until the end of trading so that the last half-hour pump by the PPT would not be in vain.


28 posted on 08/05/2011 6:12:00 PM PDT by Ghost of Philip Marlowe (Prepare for survival.)
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To: dougiefresh
There is no safe place to put your money as the bond market is now going to fall.

If any of you can pay off your house, do it! paper money is worthless but the house you live in is worth everything. Not in dollar value per se, but it's where you spend most of your time. If you own it out right, at least you have a safe haven that is not a liability.

29 posted on 08/05/2011 6:14:16 PM PDT by ExtremeUnction
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To: refermech

Not really.

If the statist are unable to borrow, they will simply raise taxes. That’s hurts us.

If they are able to lend, it will be at a much higher interest rate, which they will pay by taking on additional debt and by raising taxes.

Either way, you and I are both screwed. No dinner. No caressing.

This has been the plan all along. It is part of destroying America’s prosperity and the last, frail vestiges of the free-market system that enabled that prosperity.


30 posted on 08/05/2011 6:15:20 PM PDT by Ghost of Philip Marlowe (Prepare for survival.)
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To: dougiefresh
There is no safe place to put your money as the bond market is now going to fall.

I'm sorry -- what money?

31 posted on 08/05/2011 6:15:55 PM PDT by _a_0_0_
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To: Recovering_Democrat
Piss off. This is NOT Boehner's fault and it isn't McConnell's fault.

They voted for it. They're just as addicted to the spending as the Kenyan. Don't make excuses for them.
32 posted on 08/05/2011 6:16:50 PM PDT by jimbo123
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To: DemforBush

I would worry less about the “reputation.”

IF we are able to reclaim the AAA rating, it will be because we have gone back to the free-market principles, limited government, and balanced budget that conservatives are demanding in order to fix this mess.

IF we get to that point, the AAA status will come back and it will be deserved and we’ll re-attain the benefits that go along with that.

But we are not going to do what is needed in order to reclaim the AAA status.

Long before that happens, the European economy will implode, we will implode, China will implode.

Our choices will either be another manufactured war to reset all debts and obligations or a global currency controlled by a global, central bank, which has been the goal of the central bankers and socialists for well over a hundred years.


33 posted on 08/05/2011 6:18:54 PM PDT by Ghost of Philip Marlowe (Prepare for survival.)
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To: jimbo123

34 posted on 08/05/2011 6:19:09 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: SaraJohnson
Don’t worry, the Rino trolls are on it. They defeated the hobbits and are on the move to fix everything with Dear Reader. What we need is more welfare and food stamps. /s/

Tax the rich. We got to tax the rich. Oh, Oh, I'm in the top 5 percent. OK, End of Life Counseling. Oops, I'm old. Oh my, Oh my, what shall we do. I'm out of hope, anybody have any change?

35 posted on 08/05/2011 6:19:35 PM PDT by Silent One
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To: jimbo123

36 posted on 08/05/2011 6:20:25 PM PDT by South40 (Liberalism is a disease)
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To: Recovering_Democrat

They are not chastising Republicans.

They are chastising RINOs, and especially those RINOs that go along with Obammie the Commie’s economic policy.

Huge difference.

And I’ll pile on with them. Those representatives of ours that went along with raising the debt ceiling are either too stupid or too uninformed to understand what is happening with the global economy, OR they secretly agree with those leftist economic policies and simply give lip service to their base.

Either way, they should be tossed.


37 posted on 08/05/2011 6:22:11 PM PDT by Ghost of Philip Marlowe (Prepare for survival.)
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To: Recovering_Democrat

I agree. The Republicans did pass the Ryan plan, But it was DOA in the Dem controlled Senate. The Republicans are trying but as long as we have a Dem President and a Dem Senate, the ability to cut spending substantially will be stymied. The Dems are the party responsible for this ratings downgrade. The Republicans have voted against every Obama major spending program since he was elected.But when you are undermanned and outgunned it is a difficult task.


38 posted on 08/05/2011 6:23:27 PM PDT by chuckee
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To: ExtremeUnction

Are you so sure?

As long as you have to pay property taxes, they can get what they want from you.

To those who cannot pay off their mortgages, don’t doubt that the title will be transferred to the ChiComs.

Oh, yeah. Obammie and his commies are 100% for such a communist agenda. Remember “transforming?” Remember “reparations don’t go far enough?”

These jack-booted thugs are serious.


39 posted on 08/05/2011 6:24:44 PM PDT by Ghost of Philip Marlowe (Prepare for survival.)
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To: Ghost of Philip Marlowe
Yes, Obama is not at all bothered by this downgrade, I'm sure. He is only halfway finished with destroying America, as he told his birthday party attendees the other night (he didn't say it exactly like that, of course).
40 posted on 08/05/2011 6:28:10 PM PDT by Major Matt Mason (“I must confess, when I see anyone with an Obama 2012 bumper sticker, I recognize them as a threat")
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To: dougiefresh
"This will be the end of America as we know it.

This may NOT be a bad thing. America as we know it has created a professional politician class, that does not require any intelligence, just a low cunning, and a missing moral compass. This profession is the only one that can offer itself a pay raise without ever having to create the company. Perhaps it's time to take out the trash.

When the shooting and burning stops, we must remember how we got all these piles of rotting meat.

If we get the opportunity to reset, item one must be that people who want to be elected to power are the lowest swine bred. They should only be paid just enough to keep from starving quickly, and should weekly be pelted with human manure to remind them of their worth to society.

41 posted on 08/05/2011 6:30:25 PM PDT by jonascord (Politicians should be pelted with human manure, weekly, to remind them of their worth to society.)
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To: Ghost of Philip Marlowe
How they voted

I'm happy to say my Rep, Duncan Hunter, voted NO.

42 posted on 08/05/2011 6:31:49 PM PDT by South40 (Liberalism is a disease)
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To: refermech

It is not a good thing. It makes it harder for you and I to go into debt, but that also makes it harder for people like us to raise capital and start a business to hire more people and grow the economy. It won’t stop the government from spending like drunken sailors.

If the Democrats had gone along with the Tea Party MODEST demand to cut $4 trillion over 10 years this would have been avoided. Instead the two parties went for $2.4 Trillion, but now will eat about another $1 Trillion in debt expenses. The difference is a mere $60 Billion a year when you factor in this additional downgrade cost. The Democrats have basically caused us to piss away $100B a year in interest payments we didn’t need to pay. That money is going down the tubes and won’t help any poor person or needy person.

Instead of $4 Trillion, by voting for $2.4 Trillion they got $3.6 Trillion which includes $1 Trillion of additional waste!


43 posted on 08/05/2011 6:33:29 PM PDT by monkeyshine
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To: _a_0_0_

That news was before S&P came out and publically released the news of the downgrade late this afternoon. The did decide to review the analysis earlier when the news was about to come out, and S&S decided they were right, so they released the downgrade news. obamma is the first president to suffer through a credit rating’s downgrade.


44 posted on 08/05/2011 6:35:35 PM PDT by rawhide
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To: rawhide
Thanks for clarifying. I see bberg is finally admitting it:

U.S. Rating Cut by S&P on Deficit Reduction Pact By John Detrixhe - Aug 5, 2011 9:09 PM ET

...though surely they knew it right along with everyone else and I'd guess, given Mike's proximity to the industry and Obama's coziness with Mike, even before.

Anyway, as I'd pointed out on another thread, a nice Ramadan gift to our enemies.

45 posted on 08/05/2011 6:40:52 PM PDT by _a_0_0_
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To: chuckee; Ghost of Philip Marlowe; jimbo123

ditto.


46 posted on 08/05/2011 6:40:52 PM PDT by Recovering_Democrat
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To: rawhide

“suffer”

0bama is suffering?


47 posted on 08/05/2011 6:43:35 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: ExtremeUnction

If any of you can pay off your house, do it! paper money is worthless but the house you live in is worth everything.


Paying off a fixed-rate mortgage is a bad idea for anyone who believes that interest rates will rise.


48 posted on 08/05/2011 6:43:43 PM PDT by Atlas Sneezed (Government borrowing is Taxation without Representation)
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To: Recovering_Democrat

You are WRONG! The elite repubs should NOT have done what THEY did. They, Boehner and McConnell swhere told my the people any number of ways NOT to raise the debit limit and they did. Now they see how WRONG they were.

Working towards is not working to cut spending, it’s kicking the can down the road in hopes things will fix themselves.

Not a cent to the Repubs but to the Tea Party only!!


49 posted on 08/05/2011 6:46:04 PM PDT by Calif4Palin (President Palin sounds so good....)
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To: _a_0_0_
"S&P Reconsiders U.S. Downgrade, Unidentified Official Tells CNN"

Somebody's already threatened to break S&P's kneecaps.

50 posted on 08/05/2011 6:47:49 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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