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.
Anyone know how the Asian markets are treating this tonight?
Lost under Obama’s watch...
BUT WAIT! - That's what the tea party 'terrorists' said. (how can this be?)
they’re closed. that’s why there’s a Friday News Dump.
They are closed. They run on our time on Sunday night thru Thursday night.
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 ;)
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.
DU says its because of the Republicans...and are partly right.
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.
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.
More Hope and Change from the MARXIST regime.
Well, so is our credibility is shot as well.
In other news, President Obama lost his bid for re-election tonight (unless McCain is re-nominated).
They probably adjusted when the Chinese downgraded us earlier. Why would they trust the fox to guard the hen house?
This kinda pouring salt on the wound to post the story from an Argentinian newspaper.
Unfracking believable. Really surprised it did not drop lower.
How is that for CHANGE.
Unfracking believable. Really surprised it did not drop lower.
How is that for CHANGE.
Should be a C rating, if people were honest.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.