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Obama administration official calls S&P analysis 'way off' [ Wh says its S&P not TP's fault ]
CNN ^ | Aug 5 2011

Posted on 08/05/2011 11:00:44 PM PDT by NoLibZone

The Obama administration angrily responded to Standard & Poor's decision Friday to downgrade the U.S. credit rating, with one senior official saying the agency's "analysis was way off."

U.S. Treasury officials received S&P's analysis Friday afternoon and alerted the agency to an error that inflated U.S. deficits by $2 trillion, said the administration official, who was not authorized to speak for attribution. The agency acknowledged the mistake, but said it was sticking with its decision to lower the U.S. rating from a top score of AAA to AA+.

"This is a facts-be-damned decision," the official said. "Their analysis was way off, but they wouldn't budge."

The White House is now in wait-and-see mode - hoping the decision and the S&P analysis face outside scrutiny, the official said.

"A judgment flawed by a $2 trillion error speaks for itself," a Treasury Department spokesperson said.

In July, S&P placed the United States' rating on "CreditWatch with negative implications" as the debt ceiling debate devolved into partisan bickering.

(Excerpt) Read more at news.blogs.cnn.com ...


TOPICS: Business/Economy; Culture/Society; Extended News
KEYWORDS: aa; aaa; aaplus; creditrating; debt; geithner; obama; obamadebtladen; obamanomics; rating; standardpoors; treasury; usa2aa

1 posted on 08/05/2011 11:00:54 PM PDT by NoLibZone
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To: NoLibZone

The only thing flawed is the Keynesian Economics they have been trying for 3 years now and expecting you to pay for it’s failures.


2 posted on 08/05/2011 11:03:13 PM PDT by Trueblackman (Posting on FR since 1998 and 100% teleprompter free post as well.)
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To: NoLibZone
The USA lost it's AAA rating under Barak H Obama.

The USA lost it's AAA rating because of Barak H Obama.

Nothing more need be said.

3 posted on 08/05/2011 11:10:24 PM PDT by Mariner (War Criminal #18)
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To: Mariner

0bama is one evil and wicked bastard and bad things should be expected. It’s a no brainer.


4 posted on 08/05/2011 11:12:58 PM PDT by unkus (Silence Is Consent)
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To: Mariner

Everyone knows S&P are just a bunch of terrorists that the media shouldn’t give equal time to.....


5 posted on 08/05/2011 11:13:40 PM PDT by JPJones (Frodo Lives!)
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To: Mariner

Tea Party’s fault.


6 posted on 08/05/2011 11:13:43 PM PDT by TwoSwords (The Lord is a man of war, Exodus 15:3)
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To: Mariner

You are correct!!! The guy is a crumb bum!


7 posted on 08/05/2011 11:13:51 PM PDT by Jan Hus
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To: NoLibZone

The Obama crew are very annoying and immature sniveling bitches; nothing is ever the very predictable result of their destructive actions, it is always somebody else at fault.


8 posted on 08/05/2011 11:15:00 PM PDT by jospehm20
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To: NoLibZone

“A judgment flawed by a $2 trillion error speaks for itself,”

Is this over the government calling a reduced increase in spending a cut?


9 posted on 08/05/2011 11:18:49 PM PDT by Nickname
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To: unkus
The cost of borrowing money just went up. We are even more screwed that before if this is true.
10 posted on 08/05/2011 11:21:42 PM PDT by JimmyMc
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To: NoLibZone
The downgrade is scary.

Mister Obama's response is even scarier.

.

.

11 posted on 08/05/2011 11:23:09 PM PDT by Seaplaner (Never give in. Never give in. Never...except to convictions of honour and good sense. W. Churchill)
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To: jospehm20
"The Obama crew are very annoying and immature sniveling bitches; nothing is ever the very predictable result of their destructive actions, it is always somebody else at fault."

Exactly, Just like Rush said (paraphrasing "there will be another crises within a week or so" , although he gave it 10 days and its only been 3 or 4.

Big-ears Dumbo can only lead by crises - its the only way of the community organizer.

I have had relatives that live this exact same way. Through their depraved, unfortunate lives I have learned that if you show up to help them once - they will show up time and time again (read into that us taxpayers).

This guy is folding to the tune of his steak and caviar meals contaminated by popular foul-mouthed ghetto music.

Screw him and his - I'm done.

I don't know where it goes from here but God Bless FR and my many FRiends!

Stay Safe and God Bless you all, The real shit is hitting the fan!

P.S. I sincerely hope I am wrong and over-reacting. I am young enough to be guilty of that and hope that's the case - but I'm also old enough to recognize what is happening around me and I'm not pleased.

12 posted on 08/05/2011 11:33:22 PM PDT by voteNRA (A citizenry armed with rifles simply cannot be tyrannized)
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To: Seaplaner

Yep, I can’t wait to see how this flows through the news cycle, talking head shows on Sunday, actions taken by the administration next week, etc.

I am sometimes shocked at what comes out of this administration. I am shocked now, that the official reaction to the downgrade is to criticize S & P, saying that their methods are flawed and all that.

S & P are a professional financial rating agency. Yet to listen to the Obamabots, they don’t know what the heck they are talking about in downgrading our government’s credit rating????

So who knows more about the ratings of government and corporate bonds? The Obamabots or a professional ratings agency????

I can give you 2.4 trillion reasons why this happened. This sharp increase in the debt ceiling will be filled by early 2013. We’re taking on much more additional debt, with no plan to repay our debt. This is part of what the ratings agencies look at. They look at the income vs. outgo, ability to repay, prospects of a government or corporation for increasing revenues to pay for bond issues, and forecasts for financial performance.

But of course, the Obamabots must know much more than professionals in this field. After all, Obama is a good liberal. Liberals know more about any technical field than the experts in that field.

The Obamabots must be concerned because they had said that without an increase in the debt ceiling, we faced a default or downgrade of our credit. Well, we got the downgrade of our credit anyway.

And why was this news released after the markets closed on Friday? I will hold my breath when the Asian markets open on Sunday, and when the markets in this country open on Monday.


13 posted on 08/05/2011 11:35:10 PM PDT by Dilbert San Diego
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To: NoLibZone
The Obama administration angrily responded to Standard & Poor's decision Friday to downgrade the U.S. credit rating,...

That's how most deadbeats act when the creditors start calling.

14 posted on 08/05/2011 11:37:06 PM PDT by TigersEye (This is the age of the death of reason.)
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To: voteNRA
I can't believe I just typed that rant in public - but its from the heart.

May God Bless Us All

15 posted on 08/05/2011 11:39:00 PM PDT by voteNRA (A citizenry armed with rifles simply cannot be tyrannized)
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To: NoLibZone

Of course they will blame it on the Tea Party but most the Tea Party actually voted against the debt ceiling plan.


16 posted on 08/05/2011 11:40:07 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: voteNRA

“I sincerely hope I am wrong and over-reacting.”

I agree. It is hard for me to tell if we are over reacting or not. I have never seen the things happening that are happening now. I remember the Carter years and things were bad but the Carter administration was nowhere near as mendacious, lawless or as anti-American as the Obama hope and change crew.


17 posted on 08/05/2011 11:40:26 PM PDT by jospehm20
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To: Mariner
The USA lost it's AAA rating because of Barak H Obama.

It's a simple statement of fact, politically devastating.

18 posted on 08/05/2011 11:42:53 PM PDT by denydenydeny (Rage all you want, looters & moochers, but the gods of the copybook headings are your masters now.)
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To: NoLibZone

I didn’t see where he said it was not the Tea Partys fault.


19 posted on 08/05/2011 11:48:34 PM PDT by right way right (Put down the remote, and vote!)
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To: NoLibZone

Have they actually stated the specific error in the report ? All I have seen up till now is the typical DC Huff and Puff.


20 posted on 08/05/2011 11:51:27 PM PDT by justa-hairyape
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To: denydenydeny; jospehm20; voteNRA; NoLibZone; TigersEye; Nickname; JimmyMc; Jan Hus; unkus; ...
"The USA lost it's AAA rating because of Barak H Obama."
It's a simple statement of fact, politically devastating.


I've been reading the S&P press release and from what I've been reading what is "politically devastating" is that S&P puts 98% of the blame on the Administration's and Congress' feet for not lowering our spending even more. I see very little talk in the Release about "failure to raise taxes or revenue" and mostly talk about our national debt and how it's going to keep rising.

I don't see hardly anything that Obama or the Dems can pin blame directly on the Tea Party or Repubs. It looks to me like S&P squarely places the blame at Obama's and the dem's feet.
21 posted on 08/05/2011 11:53:26 PM PDT by brent13a (Freerepublic is a great sight for conservative news, if you can stomach the cop hating.)
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To: TigersEye

The Obama administration angrily responded to Standard & Poor’s decision Friday to downgrade the U.S. credit rating,...

That’s how most deadbeats act when the creditors start calling.


That is about it.


22 posted on 08/05/2011 11:57:16 PM PDT by bushwon ("If you think healthcare is expensive now, wait till it is free"--PJ O'rourke)
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To: brent13a

Yes, and all thinking people already knew that before the debt ceiling fiasco, the MSM will never point that fact out to the citizens not paying attention.


23 posted on 08/06/2011 12:01:21 AM PDT by jospehm20
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To: NoLibZone
To the extent that:
  1. Our economy will continue to contract
  2. More aged displaced workers will opt for the earliest Social Security retirement age
  3. The actual cost of 0bama care will not be felt for two more years
  4. None of the supposed cuts will ever happen
  5. The across-the-board cuts that "must" kick in when everyone ignores the SuperCommitteeTM will be eviscerated by passing off-budget continuing supplemental appropriations
S & P's $2 trillion "error" is actually wildly optimistic. And they know it.
24 posted on 08/06/2011 12:03:54 AM PDT by FredZarguna (Not that there's anything wrong with that.)
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To: jospehm20
Yes, and all thinking people already knew that before the debt ceiling fiasco, the MSM will never point that fact out to the citizens not paying attention.

If we had more Repubs that aren't 'establishment' that are willing to stand with the Tea Party Movement they could use this S&P Report and ride this the next year and a half straight into the WH. They could immediately have pressers and releases pointing out the obvious all before Obama is done 'umming and aahing' and have the Obama Administration looking stupid to even the most idiotic of the uninformed public.

But most Repubs are establishment cronies and also political pussies. I doubt we'll see any conservative in office use this to their advantage as best as they possibly could.
25 posted on 08/06/2011 12:07:37 AM PDT by brent13a (Freerepublic is a great sight for conservative news, if you can stomach the cop hating.)
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To: jospehm20
"I agree. It is hard for me to tell if we are over reacting or not. I have never seen the things happening that are happening now. I remember the Carter years and things were bad but the Carter administration was nowhere near was mendacious, lawless or as anti-American as the Obama hope and change crew."

Exactly my dilemma, I have no reference to apply to the current situation. I was born during Carter and have been told how tough it as then, however my entire life has been spent living in the "Carter recovery".

Fast forward to the "Jug" - eared Kenyan phase

The last 3 years have sucked and I went through the higher education system and came out with an Engineering degree.

I'm not going to be the one to bitch about things, however life has been noticeably better just a few years ago. Everything has since has gone to shit and I am getting a little pissed!

Sorry I have cursed a couple of times. I will play the "we are all sinners" card but I'm sure to no avail - sincerely I have really HAD ENOUGH - don't know how to say it otherwise

26 posted on 08/06/2011 12:13:49 AM PDT by voteNRA (A citizenry armed with rifles simply cannot be tyrannized)
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To: brent13a

I hope you are wrong but I do agree with you.


27 posted on 08/06/2011 12:15:55 AM PDT by jospehm20
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To: All
The House, under Boehner, passed a plan with bipartisan support that would have averted this downgrade on put us on the right path: "Cut, Cap & Balance" (HR 2560).

What did Obama & the obstructionist Senate say?

Harry Reid: "Over, Done, Dead"

White House: "Duck, Dodge and Dismantle."

28 posted on 08/06/2011 12:16:17 AM PDT by newzjunkey (Get behind ONE "Balanced Budget Amendment" (BBA))
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To: bushwon

As I just said on another thread; S&P might adjust our rating down another notch because of this response from the WH. They mostly crunch numbers but they mentioned “uncertainty” about policies in their report and 0bungles just gave them a reason to include “instability” in their assessment.


29 posted on 08/06/2011 12:17:16 AM PDT by TigersEye (This is the age of the death of reason.)
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To: voteNRA
I am in the same boat. I got the required degrees and I am OK so far, but things generally suck compared to life before Obama. My wife is in real estate, she has really been beaten down the last couple of years.
30 posted on 08/06/2011 12:20:53 AM PDT by jospehm20
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To: NoLibZone
Obama: "It's a bum rap!"

By disputing S&P's revision, Obama is taking ownership of the issue.

He cannot now blame Republicans or the Tea Party.

31 posted on 08/06/2011 12:32:34 AM PDT by Kennard
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To: jospehm20
God bless you and your wife!

Times suck and its hard to make things work but If you happen to hold that "engineering" degree I have an idea for you.

get certified in "mold remediation"

The jobs are there, even from Texas - drive up 35 and start offering professional opinions. Money is to be made, skip the real estate but your services will make money - I can almost promise it!

32 posted on 08/06/2011 12:37:28 AM PDT by voteNRA (A citizenry armed with rifles simply cannot be tyrannized)
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To: Kennard
"By disputing S&P's revision, Obama is taking ownership of the issue.

He cannot now blame Republicans or the Tea Party. "

Bingo!

33 posted on 08/06/2011 1:05:02 AM 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: bushwon

S and P was not first. Dagong downgraded us IIRC from AAA to A+ in November and a couple of days ago, before the Ceiling increase vote, downgraded us again to A.

http://news.yahoo.com/chinese-agency-downgrades-us-credit-rating-014637515.html

It does not matter what a debtor bank says your credit rating is, it is the people that own your debt that matters.

DK


34 posted on 08/06/2011 2:09:51 AM PDT by Dark Knight
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To: voteNRA

One of the biggest difference I see between now and then is that 33 years ago, we still had a LOT more manufacturing in this country. We made everything from appliances to toys to spacecraft. The outlook for someone such as yourself in engineering was far far brighter.

I’ve spent nearly all of my working career in manufacturing and alongside of some of the best engineers in the world. But it was and has been dwindling to a drip these days and it’s our own damn fault.

I would love nothing more than to come up with a really good idea that people would need, that I could employ 50-150 people here in this country to produce it. But I’m not an engineer (couldn’t handle the math)and haven’t yet come up with that great idea.

I wish you well in your Engineering career, maybe YOU will be the one to develop a great idea into a profitable company. The future of this country has and always will be dependent on American ingenuity.

But we have to work very hard to unwind the regulations/mindset of off-shoring our manufacturing and make it more enticing to do business here in this country. And that will be the work of the future. I still think it can happen but it’s going to take time.

Hang on a little longer...after Carter, we got Reagan, I’m hoping for brighter days ahead after these dark ones.


35 posted on 08/06/2011 3:03:18 AM PDT by SueRae (I can see November 2012 from my HOUSE!!!!!!!!)
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To: Dilbert San Diego
"S & P are a professional financial rating agency"

Are these the same people that rated junk mortgages and derivatives triple A? As I recall it was all those AAA investments that caused the crash of 2008. If so then I think they are lucky they are not in jail for fraud.

36 posted on 08/06/2011 3:27:27 AM PDT by jpsb
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To: NoLibZone

And just think, The Democrats had it within their power to pass “Cut, Cap and Balance”.


37 posted on 08/06/2011 3:27:55 AM PDT by plangent
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To: NoLibZone

“To avoid a downgrade, S&P said the United States needed to not only raise the debt ceiling, but also develop a “credible” plan to tackle the nation’s long-term debt.”


38 posted on 08/06/2011 3:31:58 AM PDT by olezip
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To: brent13a

The only way to begin to reverse this is to call out the marxists in Congress and the press by name and harass, investigate, and where justified imprison them.

Zero tolerance for marxism in US Government, make it part of the oath of office.

Make deficit spending and voting for deficit spending a CRIME except in case of war declared by Congress.

Make voter fraud a crime punishable by a minimum sentence of 25 to life.

Make all voters re-register to vote under strict controls.


39 posted on 08/06/2011 3:52:49 AM PDT by Rome2000 (OBAMA IS A COMMUNIST CRYPTO-MUSLIM)
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To: plangent
"And just think, The Democrats had it within their power to pass “Cut, Cap and Balance”."

The People's House passed it. The Dem Senate blocked it.

40 posted on 08/06/2011 3:52:56 AM PDT by Earthdweller (Harvard won the election again...so what's the problem.......? Embrace a ruler today.)
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To: olezip

Why don’t they come back to work right now? Why the heck are Congress and the President on vacation???? Come back to Washington, and fix this NOW like they should have done in the first place. Cut the damn spending!!!!

This is a real question: Couldn’t a real President make this happen?


41 posted on 08/06/2011 4:07:02 AM PDT by Bluebird Singing
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To: Trueblackman
"A judgment flawed by a $2 trillion error speaks for itself," a Treasury Department spokesperson said.

Exactly - the trouble is the spokesperson seemed oblivious to the flawed math used for the "cut"s during the debt ceiling debacle.

42 posted on 08/06/2011 4:11:59 AM PDT by trebb ("If a man will not work, he should not eat" From 2 Thes 3)
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To: NoLibZone

1.3 trillion in stimulus money and the U.S. credit rating down the rat hole.
Obama&Co. you have done your job of change now take a bow you rat s.o.b.’s.


43 posted on 08/06/2011 5:30:45 AM PDT by Vaduz
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To: NoLibZone

Look for some retaliation from the White House and other assorted government agencies against S&P and other credit rating firms in the near future.


44 posted on 08/06/2011 5:54:44 AM PDT by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
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To: TigersEye

Unbelievable :(


45 posted on 08/06/2011 7:21:34 AM PDT by bushwon ("If you think healthcare is expensive now, wait till it is free"--PJ O'rourke)
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To: Dilbert San Diego

Perhaps NOW would be a good time to absolutely insist that when the super congress or committee, or whatever they are calling it, is formed, it must, MUST consist of people appointed who are known for their fiscal wisdom and not simply decided politically and on seniority. Several names come to mind such as Paul Ryan.


46 posted on 08/06/2011 7:57:35 AM PDT by Anima Mundi (I didn't say it was your fault. I said I am going to BLAME you.)
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To: NoLibZone

“It don’t mean nothing. S&P are both racists!”


47 posted on 08/07/2011 12:50:04 AM PDT by tdscpa
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