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Obama officials attack S&P's credibility after downgrade
reuters ^ | 8/5/2011 | Glenn Somerville and Rachelle Younglai

Posted on 08/05/2011 10:45:42 PM PDT by tobyhill

The Obama administration attacked the credibility of the analysis underlying Standard & Poor's decision to downgrade the United States' top credit rating on Friday, saying it had found a $2 trillion error.

S&P was forced to remove the number from its analysis after Treasury officials discovered that the rating agency's estimates of the government's discretionary spending was $2 trillion too high, sources familiar with the discussions said.

(Excerpt) Read more at reuters.com ...


TOPICS: Extended News; News/Current Events
KEYWORDS: aa; aaa; aaplus; creditrating; cutcapbalance; downgrade; geithner; obama; obamanomics; rating; sandpfault; spfault; standardpoors; treasury; usa2aa
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1 posted on 08/05/2011 10:45:45 PM PDT by tobyhill
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To: tobyhill

With a $14 Trillion deficit and a $200+ Trillion funding deficit in SS, SSI and Medicare, $2 Trillion is a rounding error.


2 posted on 08/05/2011 10:47:27 PM PDT by freedumb2003 (Herman Cain 2012)
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To: tobyhill

LOL....he’s done : )


3 posted on 08/05/2011 10:48:50 PM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: tobyhill

S&P is about to find out that you don’t screw with der Fuhrer and his Chicago Gestapo. They are about to be skewered by Barry’s toadies in his state run “media”.


4 posted on 08/05/2011 10:49:43 PM PDT by FlingWingFlyer (Americans need to wean their government off of its dependence on foreign money.)
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To: tobyhill

brocko should not whine about this.

Any community organizer worth a damn would already have rented a mob to go to S&P headquarters and demonstrate every day until they said “shazzam!”.


5 posted on 08/05/2011 10:50:39 PM PDT by Migraine (Diversity is great... ...until it happens to YOU.)
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To: tobyhill

Time to restore my standard tagline.


6 posted on 08/05/2011 10:50:57 PM PDT by Slings and Arrows (You can't have Ingsoc without an Emmanuel Goldstein.)
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To: stephenjohnbanker

They even took the questionable $2 trillion out of the equation and they still found reason enough to downgrade.


7 posted on 08/05/2011 10:51:20 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: tobyhill

They probably said the same thing in Kenya when the whites left...and the trains haven’t moved since.

Reality has set in; it doesn’t matter what “they” say.


8 posted on 08/05/2011 10:52:17 PM PDT by kearnyirish2
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To: tobyhill

Wasn’t S&P’s offices raided by the fed prior to this downgrade???

Seems like I saw a story on this yesterday.

Maybe Obama expected... errr... WANTED the downgrade to be lower than AA+.

Maybe this is his way of getting what he really wanted.


9 posted on 08/05/2011 10:55:00 PM PDT by Safrguns
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To: tobyhill

Yep....you and I knew this would happen.


10 posted on 08/05/2011 10:55:07 PM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: tobyhill

Obama is an idiot.


11 posted on 08/05/2011 10:55:40 PM PDT by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: tobyhill

WH says its S & P’s fault not the Tea Partys or GOPS.


12 posted on 08/05/2011 10:55:49 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: Migraine

Obama will send in a few union thugs to bust some knee caps. Problem solved. Make them an offer they can’t refuse.


13 posted on 08/05/2011 10:57:30 PM PDT by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: Jim Robinson

Apparently when the international bankers funded his election, they were OK; now when nature reacts, they’re not.

God bless General Franco.


14 posted on 08/05/2011 10:58:45 PM PDT by kearnyirish2
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To: tobyhill

Maybe the people who run S&P are simply racist will be the talking point by Sunday.


15 posted on 08/05/2011 10:59:41 PM PDT by Trueblackman (Posting on FR since 1998 and 100% teleprompter free post as well.)
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To: stephenjohnbanker
They did Obama a favor and waited till the markets closed of a Friday evening.
I'm really tired of the MSM claiming this isn't a partisan issue but it really is. The Rats want to tax more so they can spend more and Conservatives want to cut spending and live within our means.
16 posted on 08/05/2011 10:59:57 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: tobyhill

This is what democrats do. That evil S&P.


17 posted on 08/05/2011 11:00:00 PM PDT by Williams (Honey Badger Don't Care)
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To: tobyhill

Maybe the S&P’s execs were teed off because they weren’t invited to the Obama hip hop BBQ thing?


18 posted on 08/05/2011 11:01:54 PM PDT by zbogwan2
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To: Jim Robinson

The downgrade would have never happened if they passed the Balanced Budget Amendment. We have been running without even a fiscal budget for going on 3 years now.


19 posted on 08/05/2011 11:04:51 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: tobyhill
Not to pick nits here, but any '2 trillion dollar error' the Obama administration found was made from fiscal projections spun completely of unicorn flavored sunshine.

That sort of thing might make good copy, but it's not going to convince investors who want to see real numbers. Our debt to income ration is preposterous. You can't blame anyone for downgrading our credit-worthiness, nor can you expect the Administration to have any credibility by asserting we have 2 trillion dollars in the penumbra or in the seat cushions of the couch.

20 posted on 08/05/2011 11:04:55 PM PDT by Steel Wolf ("Few men desire liberty; most men wish only for a just master." - Gaius Sallustius Crispus)
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To: kearnyirish2

Reality has set in; it doesn’t matter what “they” say.


Exactly. And the more they protest , the more people are going to see what they’re trying to do. Their propagand is running out of steam.


21 posted on 08/05/2011 11:06:58 PM PDT by unkus (Silence Is Consent)
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To: Steel Wolf
The con job in the White House finally got called out.

Obama just made the history books for being the first President of our downgrade.

22 posted on 08/05/2011 11:10:16 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: tobyhill
Obama is a delusional idiot.

When Clinton left office, the debt to GDP ratio was 57%. When Bush left office (eight years later), the ratio was 69%. After 2.5 years of the Obama/Mugabe Rule the ratio is 97%. How is that S&Ps fault?

Obama = EPIC FAIL.

23 posted on 08/05/2011 11:10:38 PM PDT by Chgogal (WSJ, Krauthammer, Rove et. al., STFU. Thank you.)
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To: tobyhill

Watch Obama send his union thug buddies over to S&P to try to “Reason” with them. Obama just can’t stand the fact that socialism does NOT work..he just can’t get it through his head


24 posted on 08/05/2011 11:10:52 PM PDT by Sarah Barracuda
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To: Steel Wolf

“Our debt to income ration is preposterous. “

What is the ratio? I want to see if they can buy a house.


25 posted on 08/05/2011 11:12:03 PM PDT by CJ Wolf (I like it that FR still spell checks "obama")
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To: tobyhill

With the constant lying from this WH and all the constant revisions to economic data, I’m much more inclined to believe S&P than the government.


26 posted on 08/05/2011 11:13:01 PM PDT by ProtectOurFreedom
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To: tobyhill
$2 Trillion is peanuts compared to the size of the problem over the next 10 years.

This is literally the turning point. It's the end of the world as we know it. Nothing will be the same after this. Nothing.

A disaster of biblical proportions.

27 posted on 08/05/2011 11:13:22 PM PDT by Mariner (War Criminal #18)
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To: tobyhill

28 posted on 08/05/2011 11:13:29 PM PDT by JoeProBono (A closed mouth gathers no feet)
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To: tobyhill

If I am remembering correctly, hasn’t this administration attacked S&P in the past? Perhaps this is a case of you F with the Bull you get the horn?


29 posted on 08/05/2011 11:14:24 PM PDT by antceecee (Bless us Father.. have mercy on us and protect us from evil.)
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To: tobyhill

Well everyone said his presidency would be historic :(


30 posted on 08/05/2011 11:15:15 PM PDT by bushwon ("If you think healthcare is expensive now, wait till it is free"--PJ O'rourke)
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To: kearnyirish2
"They probably said the same thing in Kenya when the whites left...and the trains haven’t moved since."

That is not at all true, in any way.

Kenya is a mostly civilized country on the British model.

You MUST be talking about Rhodesia/Zimbabwe.

31 posted on 08/05/2011 11:16:20 PM PDT by Mariner (War Criminal #18)
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To: unkus

Not so surprising that they would argue with the rating agency...instead of making a commitment to spend less—tho I don’t trust either the rating agency (they let Freddie and Fannie go on for years) or the White hut.


32 posted on 08/05/2011 11:17:08 PM PDT by bushwon ("If you think healthcare is expensive now, wait till it is free"--PJ O'rourke)
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To: unkus

Even worse; the “old news” that they had pressured the rating agencies to keep the AAA rating long after it was merited.

I don’t invest in the markets; in my area, you’d be better off investing in the “flea market” economy which is so prevalent here (if I had anything to invest).


33 posted on 08/05/2011 11:18:00 PM PDT by kearnyirish2
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To: Chgogal

Good site that shows exactly who has spent what. It doesn’t yet show the $3 trillion debt ceiling increase just passed.

http://www.treasurydirect.gov/NP/BPDLogin?application=np


34 posted on 08/05/2011 11:19:18 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: tobyhill

The S&P ate my homework.


35 posted on 08/05/2011 11:20:51 PM PDT by Rocky (REPEAL IT!)
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To: Chgogal
Bush added $4.9 trillion to the debt in 8 years and with this debt ceiling increase Obama will have spent more in two and a half years as Bush spent in 8 years with no signs of slowing down.
36 posted on 08/05/2011 11:23:47 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: Mariner

I’ve had family there in a military capacity prior to and during the Somalia war; they were there because the Brits had no military commitment to keep the Fuzzies from killing them on the Kenyan side of the border.

I am NOT talking about Zimbabwe/Rhodesia; that is more akin to Angola. Those Africans are dying because God let them choose bad leaders (the whole “free will” thing)...

Kenya/Uganda had a fairly friendly parting (unless you were Asian - in which case you couldn’t take anything with you - like Freddie Mercury’s family from Zanzibar).

There is a reason why you aren’t posting from Kenya - if they even have “internet”. - just admit you’d never live there. I live outside Newark, NJ - I know what happened when the educated people (black,brown,white) fled.


37 posted on 08/05/2011 11:27:32 PM PDT by kearnyirish2
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To: bushwon

Not so surprising that they would argue with the rating agency...instead of making a commitment to spend less—


That’s their modus operendi (sp). They never fully address a problem.


38 posted on 08/05/2011 11:27:46 PM PDT by unkus (Silence Is Consent)
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To: CJ Wolf
Fannie Mae's got your back, jack. When you can print money, you can buy every house in the country.

Of course, the houses will be worth less than the materials they're made with by the time we run out of toner for the printing presses, but that's probably part of the Obama plan, too.

39 posted on 08/05/2011 11:27:52 PM PDT by Steel Wolf ("Few men desire liberty; most men wish only for a just master." - Gaius Sallustius Crispus)
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To: kearnyirish2

Apparently when the international bankers funded his election, they were OK; now when nature reacts, they’re not.

God bless General Franco.


We might be thinking of General Pinochet before this goes on too much longer.


40 posted on 08/05/2011 11:29:43 PM PDT by unkus (Silence Is Consent)
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To: tobyhill
He may be the first President to get a two-fer. S&P hinted this might not be the last downgrade in the next 12-18 months.

Obama's a real record-breaking, transitional figure. Hopefully, history remembers he with all the credit he deserves.

41 posted on 08/05/2011 11:30:02 PM PDT by Steel Wolf ("Few men desire liberty; most men wish only for a just master." - Gaius Sallustius Crispus)
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To: tobyhill

Oh my, the first comment at Reuters is a hoot. Um, mars to liberals...doesn’t matter how many ‘good deeds’ you think you’ve done...S&P doesn’t care about that. This isn’t the public school system where you get an “A” cuz you were a good little citizen and planted a tree. LOL... sigh.


42 posted on 08/05/2011 11:33:57 PM PDT by rosepetal2010 (The government is NOT your friend)
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To: tobyhill

Greta VanSustern’s right there along with him. Neil Cavuto gave her a couple of pretty good smackdowns tonight.


43 posted on 08/05/2011 11:34:08 PM PDT by llandres (Forget the "New America" - restore the original one!!)
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To: All

By no means am I laughing at the downgrade as that is NEVER a good thing. However, what is funny is the same IDIOTS who voted for this POS are in the same boat as the people who didn’t vote for him. In other words, they too are subject to % rate increases to their mortgages, auto loans, credit cards, etc.

They made their bed and now they too have to lay in it.

PAYBACK is a bit*h as now we’re all affected!


44 posted on 08/05/2011 11:34:29 PM PDT by Kevin in California
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To: unkus

They are birds of a feather; the US supported both when we had a “Cold War”. Generals Pinochet and Galtieri (Argentina) secured the “southern cone” while we dealt with the top; South American generals were victims of the peace (where we pretended we didn’t know they were killing their Communists, after the USSR fell).


45 posted on 08/05/2011 11:40:00 PM PDT by kearnyirish2
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To: Jim Robinson
"Obama will send in a few union thugs to bust some knee caps. Problem solved. Make them an offer they can’t refuse."

You have your orders . . . Standard and Poors will regret they pulled down our AAA rating . . . I want that rating back up! Where's Michelle? Someone tell her I want my cookies and milk!

Does anyone have a cigarette? Kools would be good.

46 posted on 08/05/2011 11:40:09 PM PDT by jonrick46 (2012 can't come soon enough.)
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To: tobyhill

“That dang telephone pole ran into my car!!!”


47 posted on 08/05/2011 11:43:07 PM PDT by TigersEye (This is the age of the death of reason.)
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To: Sarah Barracuda

“Watch Obama send his union thug buddies over to S&P to try to “Reason” with them. Obama just can’t stand the fact that socialism does NOT work..he just can’t get it through his head”

BHO loves that we got downgraded. I don’t know why lots more people can’t face the ugly fact that his entire mission - all his acts both here and abroad - is to take our country (and us) DOWN.


48 posted on 08/05/2011 11:44:06 PM PDT by llandres (Forget the "New America" - restore the original one!!)
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To: TigersEye
It's funny because now if S&P changes their downgrade back to AAA then investors will bail on them as unreliable and able to be pushed around by Obama.
49 posted on 08/05/2011 11:46:15 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: llandres

I agree 100% with you. The Kenyan has accomplished one of his missions.


50 posted on 08/05/2011 11:48:11 PM PDT by Kevin in California
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