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United States loses AAA credit rating from S&P
BuenosAiresHerald.com ^ | August 5, 2011 | BuenosAiresHerald.com

Posted on 08/05/2011 6:16:35 PM PDT by Iam1ru1-2

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 US 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 US government, companies and consumers.

"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," S&P said in a statement.

The decision follows a bitter political battle in Congress over cutting spending and raising taxes to reduce the government's debt burden and allow its statutory borrowing limit to be raised.

On Aug. 2 President Barack Obama signed legislation designed to reduce the fiscal deficit by $2.1 trillion over 10 years. But that was well short of the $4 trillion in savings S&P had called for as a good "down payment" on fixing America's finances.

The political gridlock in Washington and the failure to seriously address US long-term fiscal problems came against the backdrop of slowing US economic growth and led to the worst week in the US stock market in two years this week.

The S&P 500 stock index fell 10.8 percent in the past 10 trading days on concerns that the US economy may head into another recession and because the European debt crisis has been growing worse as it spreads to Italy.


TOPICS: Crime/Corruption; Government; News/Current Events; Politics/Elections
KEYWORDS: aa; aaa; aaplus; ceiling; credit; creditrating; cutcapbalance; debt; debtceiling; debtlimit; downgrade; geithner; obama; obamanomics; rating; ratingservices; reid; standardpoors; treasury; triplea; usa2aa

1 posted on 08/05/2011 6:16:38 PM PDT by Iam1ru1-2
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To: Iam1ru1-2

Anyone know how the Asian markets are treating this tonight?


2 posted on 08/05/2011 6:18:49 PM PDT by Cheerio (Barry Hussein Soetoro-0bama=The Complete Destruction of American Capitalism)
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To: Iam1ru1-2

Lost under Obama’s watch...


3 posted on 08/05/2011 6:19:53 PM PDT by citizencon
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To: Iam1ru1-2
"...falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," S&P said in a statement."

BUT WAIT! - That's what the tea party 'terrorists' said. (how can this be?)

4 posted on 08/05/2011 6:20:28 PM PDT by Baynative (If the government was in charge of the desert , we'd soon have a shortage of sand.)
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To: Cheerio

they’re closed. that’s why there’s a Friday News Dump.


5 posted on 08/05/2011 6:20:58 PM PDT by _a_0_0_
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To: Cheerio

They are closed. They run on our time on Sunday night thru Thursday night.


6 posted on 08/05/2011 6:21:11 PM PDT by bunster
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To: Iam1ru1-2

But but but Bonehead and Mcdumbass got a bill through that zero would pass. This was not suppose to happen!!!1

/s if you really thought i meant it ;)


7 posted on 08/05/2011 6:21:11 PM PDT by cableguymn
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To: Iam1ru1-2

Market watch is quoting someone who says this is the Tea Party downgrade. This is a downgrade due to the Obama Admin.’s incompetence. If the Tea Party shares any blame it is because they folded instead of shutting down the government.


8 posted on 08/05/2011 6:21:19 PM PDT by oldbrowser (They're socialists don't call them liberals)
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To: Iam1ru1-2
Can you hear them cheering?


9 posted on 08/05/2011 6:21:41 PM PDT by _a_0_0_
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To: Iam1ru1-2

DU says its because of the Republicans...and are partly right.


10 posted on 08/05/2011 6:24:07 PM PDT by DainBramage
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To: Iam1ru1-2

S&P. The same group that was in bed with Goldman Sachs and Freddy and Fanny to sell “AAA” mortgage back securities. Their credibility is shot.


11 posted on 08/05/2011 6:24:19 PM PDT by steveab (When was the last time someone tried to sell you a CO2 induced climate control system for your home?)
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To: Iam1ru1-2

Other than the U.S. having to pay higher interest rates on the national debt, what are the significant, immediate effects of this action on the country and on we, the people?

Thank you, in advance for any information.


12 posted on 08/05/2011 6:24:29 PM PDT by Signalman
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To: Iam1ru1-2

More Hope and Change from the MARXIST regime.


13 posted on 08/05/2011 6:24:32 PM PDT by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: steveab

Well, so is our credibility is shot as well.


14 posted on 08/05/2011 6:27:13 PM PDT by Biggirl ("Jesus talked to us as individuals"-Jim Vicevich/Thanks JimV!)
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To: Iam1ru1-2

In other news, President Obama lost his bid for re-election tonight (unless McCain is re-nominated).


15 posted on 08/05/2011 6:27:32 PM PDT by HapaxLegamenon
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To: Cheerio
Anyone know how the Asian markets are treating this tonight?

They probably adjusted when the Chinese downgraded us earlier. Why would they trust the fox to guard the hen house?

16 posted on 08/05/2011 6:28:28 PM PDT by The Duke
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To: Iam1ru1-2

This kinda pouring salt on the wound to post the story from an Argentinian newspaper.


17 posted on 08/05/2011 6:28:34 PM PDT by Presbyterian Reporter
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To: Don Corleone
From AAA to AA+.

Unfracking believable. Really surprised it did not drop lower.

How is that for CHANGE.

18 posted on 08/05/2011 6:30:34 PM PDT by Bailee
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To: Don Corleone
From AAA to AA+.

Unfracking believable. Really surprised it did not drop lower.

How is that for CHANGE.

19 posted on 08/05/2011 6:30:43 PM PDT by Bailee
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To: Bailee

Should be a C rating, if people were honest.


20 posted on 08/05/2011 6:32:06 PM PDT by dfwgator
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To: Biggirl

“Well, so is our credibility is shot as well.”

You said it. We are being played for higher taxes on the “rich”. Socialist definition of “rich”: Anybody with a job.


21 posted on 08/05/2011 6:35:25 PM PDT by steveab (When was the last time someone tried to sell you a CO2 induced climate control system for your home?)
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To: Iam1ru1-2

This on the day I get my annual property value notice. Down another 24 thousand. From $254,000 to the new $230,000.

The high water mark in 2007 we were sitting at $325,000.

Good thing we aren’t planning to sale.


22 posted on 08/05/2011 6:39:49 PM PDT by NavyCanDo
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To: citizencon

My sentiments too.


23 posted on 08/05/2011 6:40:52 PM PDT by MagnoliaB
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To: Signalman
Other than the U.S. having to pay higher interest rates on the national debt,

That is the original effect. From it a come the necessity of truly reducing real spending in order to keep from adding to the Debt at a much higher rate. If we continue to spend at the same rate with higher interest rates then the rates will go yet higher as the "rating" is downgraded further. It simply is the next leg up on Collapse because the political class WILL NOT rein in real spending. No departments will be eliminated, etc. If we do cut spending sufficient that we seem to be paying off a tiny corner of the Debt it will make no difference in the not very long run because all those Departments and Agencies and Bureaus will still be there. It is like Fat cells in your body. As you stuff yourself unto obesity your body creates additional fat cells. As you seriously diet and exercise and lose weight those fat cells get smaller and you appear to be thinner but you have all those extra fat cells and you can't get rid of them without Surgery. As soon as you relax your diet-and-exercise regimen those fat cells grow back and more new ones are created to ride along with them.

24 posted on 08/05/2011 6:50:20 PM PDT by arthurus (Read Hazlitt's "Economics In One Lesson.")
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To: HapaxLegamenon
In other news, President Obama lost his bid for re-election tonight (unless McCain is re-nominated).

Or McRomney.

25 posted on 08/05/2011 6:51:30 PM PDT by arthurus (Read Hazlitt's "Economics In One Lesson.")
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To: _a_0_0_

We are very vunerable right now. Our enemies are happy. Especially obama.


26 posted on 08/05/2011 6:56:56 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: Terry Mross

I guess now where The Great Sat-n, what with the removal of that last A.


27 posted on 08/05/2011 7:02:29 PM PDT by _a_0_0_
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To: _a_0_0_

correction: I guess now we’re The Great Sat-n, what with the removal of that last A.


28 posted on 08/05/2011 7:03:15 PM PDT by _a_0_0_
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To: oldbrowser

Market watch is quoting someone who says this is the Tea Party downgrade. ... Wolf Blitzer said it.


29 posted on 08/05/2011 7:05:45 PM PDT by ThePatriotsFlag
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To: bunster; _a_0_0_
My bad - didn't remember it was Fri. But I guess that is why it came out on Fri.
30 posted on 08/05/2011 8:21:03 PM PDT by Cheerio (Barry Hussein Soetoro-0bama=The Complete Destruction of American Capitalism)
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