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Geithner-U.S. Treasuries still safe after downgrade (Administration in complete denial)
reuters ^ | 8/7/2011 | reuters

Posted on 08/07/2011 5:17:05 PM PDT by tobyhill

U.S. Treasury debt is as safe as it was before a Standard & Poor's rating downgrade of the United States and Congress' "damaging" debate over raising the country's debt limit, Treasury Secretary Timothy Geithner said on Sunday.

Geithner, in an interview with NBC/CNBC television, also called on European leaders to ensure that there is an "unequivocal financial backstop" for euro zone governments facing fiscal and debt problems.

He added that a double-dip recession was unlikely if governments and central banks made good decisions.

Asked whether Treasuries were as safe now as they were last week, Geithner replied: "Absolutely. And the judgment by S&P changed nothing."

Geithner continued the Treasury's attack on the credit rating agency, which cut the U.S. sovereign rating late on Friday to AA-plus from AAA citing the political gridlock in Washington and a debt deal that produced less fiscal savings than the agency had prescribed.

"I mean I think S&P has shown really terrible judgment and they've handled themselves very poorly," Geithner said. "And they've shown a stunning lack of knowledge about basic U.S. fiscal budget math. And I think they drew exactly the wrong conclusion from this budget agreement."

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


TOPICS: Extended News; News/Current Events
KEYWORDS: 882011; 88211; aaa; aaplus; aug82011; august82011; debt; downgrade; geithner; standardpoors; treasuries; treasury

1 posted on 08/07/2011 5:17:09 PM PDT by tobyhill
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To: tobyhill

Geithner stays because NOBODY else will take the job!


2 posted on 08/07/2011 5:18:48 PM PDT by WellyP (REAL)
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To: tobyhill

These libs believe that telling the same lies repeatedly somehow makes them true. If they say treasuries are safe, time to sell. LOL


3 posted on 08/07/2011 5:20:41 PM PDT by dajeeps
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To: tobyhill

This _would_ be the same Geithner who assured us there would be no downgrade.

Right?

So why should anyone believe him now?


4 posted on 08/07/2011 5:21:04 PM PDT by Cringing Negativism Network (We are not tea partiers ... we are good tea partiers. Life-long tea partiers)
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To: tobyhill
U.S. Treasury debt is as safe as it was before a Standard & Poor's rating downgrade

At 4PM Friday (before the downgrade) the US Treasury debt was as safe as it was at 9PM Friday (after the downgrade). Technically Tim is correct. Nothing happened during that 5 hour window.

Let's see what Tim has to say Monday morning at 11AM after the markets speak their mind.

5 posted on 08/07/2011 5:21:40 PM PDT by mlocher (Is it time to cash in before I am taxed out?)
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To: tobyhill

I really didn’t expect him to say “Don’t buy American!”


6 posted on 08/07/2011 5:24:33 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: tobyhill
He added that a double-dip recession was unlikely if governments and central banks made good decisions.

This from the guy that said last April, IIRC, that there was no way S&P would issue a downgrade.

"I mean I think S&P has shown really terrible judgment and they've handled themselves very poorly," Geithner said. "And they've shown a stunning lack of knowledge about basic U.S. fiscal budget math. And I think they drew exactly the wrong conclusion from this budget agreement."

See, only smart guys like me can understand fiscal budget math.

Oh Timmy, I'm so thrilled you're staying on. We need many more just like you helping nobama implement his plan.

7 posted on 08/07/2011 5:24:59 PM PDT by upchuck (Rerun: Think you know hardship? Wait till the dollar is no longer the world's reserve currency.)
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To: tobyhill
U.S. Treasury debt is as safe as it was before a Standard & Poor's rating downgrade of the United States and Congress' "damaging" debate over raising the country's debt limit, Treasury Secretary Timothy Geithner said on Sunday.

Very subtle blame Republican verbage. It also provide cover to Obama, Mr. "on TV twice a day to discuss the Situation."

8 posted on 08/07/2011 5:25:20 PM PDT by mlocher (Is it time to cash in before I am taxed out?)
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To: tobyhill
"He added that a double-dip recession was unlikely if governments and central banks made good decisions."

Guess that leaves our government out, then.

Throw a party, Timmy and Barry can do body shots off Ms. Obama's toned biceps.

9 posted on 08/07/2011 5:26:36 PM PDT by West Texas Chuck (Alcohol, Tobacco and Firearms. That should be a convenience store, not a Government Agency.)
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To: tobyhill
'No risk' the US will lose its top credit rating, says Treasury's Geithner
10 posted on 08/07/2011 5:27:13 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: tobyhill
NOBODY can do what Timmy can do.
He is like ... a magician.


11 posted on 08/07/2011 5:27:19 PM PDT by Diogenesis (No man's life, liberty, or property is safe while the legislature is in session. - Mark Twain)
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To: mlocher

That downgrade was the ultimate Friday Night News Dump.


12 posted on 08/07/2011 5:28:55 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: tobyhill

Let’s see: Axelrod says the Tea Party created the problem and Little Timmy Geithner says there is no problem. Is that about right?


13 posted on 08/07/2011 5:28:55 PM PDT by Rocky (REPEAL IT!)
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To: Diogenesis

14 posted on 08/07/2011 5:29:43 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: upchuck
"And I think they drew exactly the wrong conclusion from this budget agreement."

Uh, what budget agreement is that Timmy? AFAIK, the US hasn't had a budget in two years. Oh, maybe you mean nobama's budget that the Senate shot down 97 to zip. That budget agreement?

This man is a raving lunatic.

15 posted on 08/07/2011 5:30:06 PM PDT by upchuck (Rerun: Think you know hardship? Wait till the dollar is no longer the world's reserve currency.)
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To: Rocky
"Let’s see: Axelrod says the Tea Party created the problem and Little Timmy Geithner says there is no problem. Is that about right?"

And Obama says S&P has miss calculated by 2 T.

16 posted on 08/07/2011 5:31:22 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: tobyhill
"And then our reporter asked Mr. Geithner if he understood that the Debt/GDP is now 100%, and if he thought it was safe to continue beyond 120% as dictated by budget projections."

Just kidding. The reporter didn't ask him that.

17 posted on 08/07/2011 5:31:24 PM PDT by FlyVet
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To: tobyhill

What struck me watching that on stream was his complete ability to lie so thoroughly. There was not an iota of shame or remorse there.

That is what true evil looks like.


18 posted on 08/07/2011 5:33:04 PM PDT by Norm Lenhart
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To: tobyhill
U.S. Treasury debt is as safe as it was before a Standard & Poor's rating downgrade of the United States and Congress' "damaging" debate over raising the country's debt limit, Treasury Secretary Timothy Geithner said on Sunday.

Well the market for Treasuries will answer the question of the safety of American debt. Realistically, with the turmoil currently ongoing in Europe. U.S. Treasuries look pretty good - so I think Geitner is right. (The Broken Clock Principle at work.)

But he is only right in the short run unless a miracle happens and Congress actual decides to do something about the entitlement programs before they go belly up. That's not likely since demagouging the GOP on Medicare is the only strategy the Dims have for 2012.

19 posted on 08/07/2011 5:33:48 PM PDT by InterceptPoint (w)
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To: tobyhill

This president inherited a AAA rating.....and look what he’s done with it.


20 posted on 08/07/2011 5:34:51 PM PDT by anniegetyourgun
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To: Norm Lenhart
What struck me watching that on stream was his complete ability to lie so thoroughly. There was not an iota of shame or remorse there.

It strikes me that Obama and everyone around him is like that. Sociopaths.

21 posted on 08/07/2011 5:36:51 PM PDT by FlyVet
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To: tobyhill

Hey - the debt is safe. FED Reserve can buy every nickel’s worth of the debt, and can continue to buy all the debt 0bama needs so that he can then buy all the votes he wants. No problem for at least 15 more months until the election. After the election, then Katy bar the door for a full-on government take over of everything.

“King Barry I”


22 posted on 08/07/2011 5:39:05 PM PDT by tpmintx (The problems we face today are there today because the people who work for a living are outnumbered.)
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To: tobyhill

Still no comment from Great Leader? This is sop - Great Leader is insulated from any major developments. He will soon give a speech about something. He still gives good speech.


23 posted on 08/07/2011 5:39:27 PM PDT by AD from SpringBay (We deserve the government we allow.)
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To: tobyhill

I seriously believe Obama wanted the downgrade to occur.

This is one of the things he wanted to do to damage the country economically.


24 posted on 08/07/2011 5:41:34 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: tobyhill

What Timmy should have said is that the debt is an unsafe as it was before the downgrade.


25 posted on 08/07/2011 5:43:09 PM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: dajeeps; Cringing Negativism Network; NoLibZone; upchuck
"Geithner-U.S. Treasuries still safe after downgrade"

HEAD FOR THE EXITS!

26 posted on 08/07/2011 5:43:53 PM PDT by Enterprise ("Those who can make you believe absurdities can make you commit atrocities." Voltaire)
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To: tobyhill

Hey, they are safe! The Fed will keep buying them to keep the light on for you!


27 posted on 08/07/2011 5:44:23 PM PDT by familyop ("Dry land is not just our destination, it is our destiny!" --Deacon character, "Waterworld")
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To: InterceptPoint
Ole Timmy is wearing rose-colored glasses. It only is going to get worse from here as no one wants to buy our debt.
28 posted on 08/07/2011 5:44:49 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: tobyhill

And still nobody. Not one person. Either side of the aisle.

Speaks of our gaping trade deficit.

Bring back Donald Trump!


29 posted on 08/07/2011 5:46:21 PM PDT by Cringing Negativism Network (We are not tea partiers ... we are good tea partiers. Life-long tea partiers)
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To: tobyhill

debate is damaging? Thta is what this country was founded on. No - debate is fine. $1.5T annual deficits and an unwillingness to even slow down entitlement spending is what is damaging. Yet there isn’t even one Congressman calling for his resignation. Pathetic.


30 posted on 08/07/2011 5:47:03 PM PDT by plain talk
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To: familyop

I’m about ready to start melting.


31 posted on 08/07/2011 5:48:47 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: WellyP

Geithner was the one who said...no problem...Just raise the ceiling....Obama needs him to kick around...He can’t leave!!


32 posted on 08/07/2011 5:52:31 PM PDT by Sacajaweau
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To: tobyhill

It only is going to get worse from here as no one wants to buy our debt.
+++++++++
In the long run you are right. But I’m talking about the short run. If I’m reading the charts correctly it looks to me like interest rates on U.S. Debt are falling not rising as you might expect. U.S.Treasuries are, amazingly, still the safe haven.


33 posted on 08/07/2011 5:57:00 PM PDT by InterceptPoint (w)
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To: tobyhill

Geithner may be right for once, EUrope is even more screwed up than the USA.


34 posted on 08/07/2011 5:58:36 PM PDT by Mike Darancette (Obama get our AAA back.)
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To: tobyhill
He added that a double-dip recession was unlikely if governments and central banks made good decisions.

Remember this is from the guy who couldn't figure out his taxes so he just didn't pay them.

35 posted on 08/07/2011 6:00:19 PM PDT by clove (God, Family and Country, the truth will live!)
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To: tobyhill

he has more work to do! :-(


36 posted on 08/07/2011 6:00:48 PM PDT by MAKOTHEDOG
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To: tobyhill
Expect another blow to confidence.

An American Expat in Southeast Asia

37 posted on 08/07/2011 6:04:39 PM PDT by expatguy (The Expat Needs Beer Money - Cough Up!)
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To: tobyhill
Treasuries:

1 yr - OK

3 yr -- ?

10 yr - shaky, at best

30 year? LOL

38 posted on 08/07/2011 6:07:19 PM PDT by Paladin2
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To: Mike Darancette

Welcome to the world of the Yen.


39 posted on 08/07/2011 6:10:35 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: InterceptPoint
Geithner is just trying to mitigate the damage that's right around the corner.
The only hope that Obama has is if he's successful.
Remember, Obama is the first and only President to not only have a downgrade on his watch but have the downgrade because of his policies.
40 posted on 08/07/2011 6:17:29 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: tobyhill

Perhaps....for the time being.


41 posted on 08/07/2011 6:40:16 PM PDT by prairiebreeze
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


42 posted on 08/07/2011 6:44:08 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: tobyhill

Yes, and those who held Zimbabwe govt debt were all repaid, too! (In Zimbabwe dollars worth next to nothing). But it wasn’t a “default”!


43 posted on 08/07/2011 7:14:08 PM PDT by JustTheTruth (Sometimes the Truth hurts so much that most refuse to face or accept it, even when it is obvious.)
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To: tobyhill

Timmy and 0bama are now applying advice from George Costanza : “ It’s not a lie, if you really believe it”


44 posted on 08/07/2011 7:24:35 PM PDT by Steven Tyler
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To: tobyhill

LET_THEM_EAT_GREEN_SHOOTS_PING!!!


45 posted on 08/07/2011 8:19:05 PM PDT by The Duke
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