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Mystery surrounds details of S&P downgrade [ CNN rejects Axelrods & Kerrys TP blame ]
money.cnn.com ^ | August 8 2011 | By Jennifer Liberto

Posted on 08/08/2011 1:00:42 PM PDT by NoLibZone

WASHINGTON (CNNMoney) -- Little is known about key details that led Standard & Poor's to downgrade U.S. debt late Friday, despite its outsized repurcussions.

While the move knocking U.S. debt down a notch from the lofty AAA rating has exacerbated an already skittish stock market and drawn criticism from the White House, key details are a mystery.

S&P doesn't say who, exactly, made the decision at the company; what kind of weight they gave U.S. politics versus ability to pay; or to what extent they felt pressured to downgrade the United States in response to criticism of its downgrades of risky European nations.

Standard & Poor's is one of three major credit rating agencies -- along with Moody's and Fitch -- that make money by giving grades on how likely it believes that a nation, municpal government or company will pay off its debt.

However, the rating companies are unregulated, even as their ratings garner big-time consequences. And while S&P officials have talked about the "flavor of some of the assumptions," including their doubts about the ability of Congress and the White House to work together to cut deficits, they don't have to reveal details of their discussions.

During the financial crisis, these same agencies got hammered for their decision to give top grades to securities based on risky mortgages made to homeowners destined to default on their loans.

And while their grades to sovereign debt haven't been as tarnished as their grades to mortgage-backed securities, critics in both cases have questioned the greater significance for the markets.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Extended News
KEYWORDS: barrackolypsenow; cutcapbalance; debt; democrats; downgrade; fitch; moodys; obama; obamadowngrade; obamageddon; scapegoat; spcredit; standardpoors; teaparty; teapartydowngrade

1 posted on 08/08/2011 1:00:56 PM PDT by NoLibZone
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To: NoLibZone

Barack Caesar: “Et tu, CNN?”


2 posted on 08/08/2011 1:03:18 PM PDT by Pearls Before Swine
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To: NoLibZone

What mystery? S&P said they were looking for $4 trillion in cuts and did not get it. The real question is why did that wake up now and not a decade or two ago.


3 posted on 08/08/2011 1:07:44 PM PDT by DonaldC (A nation cannot stand in the absence of religious principle.)
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To: NoLibZone

furiously working behind the scenes....to get this backdated 3 years so it’ll be Bushs fault.


4 posted on 08/08/2011 1:09:39 PM PDT by bigbob
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To: NoLibZone

Say what you want, but I applaud S&P for downgrading us after that ridiculous bill was passed last week. Until this country and it’s pathetic politicians get serious about cutting spending and entitlements, it’s a farce to have a AAA+ rating.


5 posted on 08/08/2011 1:09:42 PM PDT by demkicker (Helping Democrats Become Extinct)
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To: NoLibZone
Little is known about key details that led Standard & Poor's to downgrade U.S. debt

Little is known? Oh, this is another new low. S&P SAID what needed to pass to avoid it and our Congress completely ignored it and passed a crappy bill anyway.
6 posted on 08/08/2011 1:12:41 PM PDT by Eagle of Liberty (Shaking My Head on a daily basis)
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To: NoLibZone

The pressure is on my FRiends. I’ll bet the S&P revises it’s decision within a month.
We are so screwed.


7 posted on 08/08/2011 1:23:26 PM PDT by vpintheak (Democrats: Robbing humans of their dignity 1 law at a time)
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To: NoLibZone

I expect Eric Holder to begin investigating S&P by Friday.

It’s the Chicago/Alinsky way.


8 posted on 08/08/2011 1:24:50 PM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: Pearls Before Swine
Barack Caesar: “Et tu, CNN?”

well, as a famous Leftist once said, you don't need a weatherman to know which way the wind blows.
9 posted on 08/08/2011 1:25:33 PM PDT by Buckeye McFrog
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To: vpintheak

They are already backtracking
S&P Director: Downgrade Not ‘Catastrophic’ For U.S. Credit-Worthiness
http://www.huffingtonpost.com/2011/08/08/sp-director-reaction-credit-worthiness_n_920827.html


10 posted on 08/08/2011 1:42:38 PM PDT by Lorianne
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To: DonaldC
What mystery? S&P said they were looking for $4 trillion in cuts and did not get it. The real question is why did that wake up now and not a decade or two ago.


What mystery indeed.

We have run deficits averaging 1.5 TRILLION dollars per year since Obama was elected and he and the Democrats want to spend even higher deficits for the next 10 years.

The country was at a total debt of about 70% GDP from all of American past borrowing in history before Obama took office.

The US is now at a total debt of about 100% of GDP after the Obama and Congressional Democrats spending spree since 2008, and Obama wants to accelerate that spending spree to a total debt to 120% before 2012.

Concern that America might have a bit of trouble with this degree of debt load given our entitlement obligations going forward is a mystery to some. I really want those “some” to go on record so it will be clear who the idiots are that cannot understand this so we don't put them into responsible positions.

11 posted on 08/08/2011 1:48:27 PM PDT by rdcbn
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To: Lorianne
They are already backtracking
S&P Director: Downgrade Not ‘Catastrophic’ For U.S. Credit-Worthiness
http://www.huffingtonpost.com/2011/08/08/sp-director-reaction-credit-worthiness_n_920827.html


Well, of course, the “Downgrade” in and of itself is not catastrophic.

The reckless out of control spending that is the reason for the down grade is however is becoming catastrophic.

12 posted on 08/08/2011 1:51:44 PM PDT by rdcbn
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To: NoLibZone

Bump


13 posted on 08/08/2011 1:59:09 PM PDT by BunnySlippers (I love BULL MARKETS . . .)
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To: Pearls Before Swine

I had CNN on briefly this morning and the woman on the screen was spinning the S&P rating as a sign that taxes need to be raised.


14 posted on 08/08/2011 2:14:56 PM PDT by Verginius Rufus
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To: NoLibZone
S&P doesn't say who, exactly, made the decision at the company...

Afraid of reprisals, maybe? With zero as president and Holder running the "Justice" department, I'd be afraid, too.

15 posted on 08/08/2011 2:16:43 PM PDT by jeffc (Prayer. It's freedom of speech.)
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To: NoLibZone

The down grade was either a political act, or they realized the game was about up anyway.

We should have been down graded a long time ago.


16 posted on 08/08/2011 2:25:58 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Verginius Rufus
“Tea parties fault!”
That is the talking point. I don't know how much it will stick though. Even the Kool Aide drinkers are turning on Obama.
17 posted on 08/08/2011 2:28:23 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Verginius Rufus

“Tea parties fault!”
That is the talking point. I don’t know how much it will stick though. Even the Kool Aide drinkers are turning on Obama.


18 posted on 08/08/2011 2:33:21 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Verginius Rufus
I had CNN on briefly this morning and the woman on the screen was spinning the S&P rating as a sign that taxes need to be raised.

But of course. Obama's speech was essentially saying the same thing.

The foolishness of it is that at this point in the business cycle, raising taxes will lower incomes, so they will collect a higher percentage of less income, along with higher employment. It won't help anything.

19 posted on 08/08/2011 3:09:39 PM PDT by Pearls Before Swine
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To: NoLibZone

20 posted on 08/08/2011 3:15:00 PM PDT by mrsmith
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To: NoLibZone
However, the rating companies are unregulated...

You can be sure Obastard will take care of that little problem.

21 posted on 08/08/2011 3:15:56 PM PDT by Fresh Wind ('People have got to know whether or not their President is a crook.' Richard M. Nixon)
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To: rdcbn
"We have run deficits averaging 1.5 TRILLION dollars per year since Obama was elected and he and the Democrats want to spend even higher deficits for the next 10 years."

What I'm wondering is why? This isn't a sudden turn of events. Is S&P helping Obozo tear down the country or making dammed sure he doesn't get re-elected with a giant poison pill?

Will S&P not get clobbered in this mess or have they used their inside info to short the US?

22 posted on 08/08/2011 3:28:39 PM PDT by HangThemHigh (Entropy's not what it used to be.)
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To: Pearls Before Swine

So many of Obama’s policies are designed to discourage businesses from hiring new employees—regulations, Obamacare, pro-union interference, general uncertainty about administration plans...there must be some people in the administration who realize this keeps the unemployment numbers high. Either they are so committed to the goals of income redistribution and “social justice” that they don’t care about the economic consequences, or they think “the politics of personal destruction” (to use Hillary’s phrase—perhaps she trademarked it) will suffice to win in 2012.


23 posted on 08/08/2011 3:56:36 PM PDT by Verginius Rufus
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To: demkicker
I don't think the downgrade is such a bad thing....you've got the dems working to destroy the economy since 2006..then Zero came along and puts it in full tilt boggy...now the whole wide world can see what flakes Zero and the dems are...

America is the engine of the world...they've put so much unsound junk in it...they can't get it started...the world has gotten to have their socialism and whatever other flaking invention they've invented because of the engine of the world...America...so now let the stupids suffer for it.

24 posted on 08/08/2011 4:09:22 PM PDT by shield (Rev 2:9 Woe unto those who say they are Judahites and are not, but are of the syna GOG ue of Satan.)
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