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Fitch Warns It May Downgrade U.S. Over Debt Standoff
The Wall Street Journal ^ | Updated January 15, 2013, 2:32 p.m.

Posted on 01/15/2013 12:42:34 PM PST by drewh

A major credit-rating firm warned it could downgrade the U.S. if lawmakers prioritize debt payments over other government obligations such as Social Security, or fail to tackle the nation's growing debt burden in the ongoing budget negotiations.

Fitch Ratings, one of the ratings firms that are closely watching the U.S. inch closer to its borrowing limit, unveiled two potential routes to a downgrade Tuesday, laying out their analysis more specifically than in prior reports.

Analysts predict the U.S. will hit its so-called debt ceiling between Feb. 15 and March 1.

Fitch's warning comes as President Barack Obama and Republican leaders in Congress jostle over a vote to raise the country's borrowing limit. And just as the credit-rating firms are closely observing the action in Washington, lawmakers there—and investors around the world—are keeping an eye on the analysts who hold the fate of the U.S.'s credit rating in their hands. A lower rating could raise the country's borrowing costs or at least signal to investors that its fiscal house isn't in top shape.

Fitch said Tuesday that it may downgrade the nation's debt even if lawmakers raise the debt ceiling, if Washington emerges from those negotiations without taking steps to lighten the U.S. debt load

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: fitch; usdebt; usdowngrade

1 posted on 01/15/2013 12:42:40 PM PST by drewh
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To: drewh

And with that news, bank stocks RISE? What in God’s name? The entire financial system is totally corrupt. Absolutely NO doubt after all of the recent events and news. If a Republican were president, the markets would crash on that news.


2 posted on 01/15/2013 12:44:22 PM PST by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: drewh

http://www.usatoday.com/story/money/business/2013/01/15/fitch-downgrade-us/1835385/
“fundamental credit strengths are being eroded by the large, albeit steadily declining, structural budget deficit and high and rising public debt.”

If by ‘albeit steadily declining’ they mean ‘maybe barely perceptibly declining’ that’s pretty accurate.


3 posted on 01/15/2013 12:52:56 PM PST by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat Party!)
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To: drewh

Hmmm...If the US Govt was a corporation wanting to issue bonds, I wonder what its credit rating would be? They would have to extend the ratings scale to include ‘ZZZ’.


4 posted on 01/15/2013 1:03:33 PM PST by Mich Patriot (PITCH BLACK is the new "transparent")
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To: drewh

economics bump for later....


5 posted on 01/15/2013 1:06:58 PM PST by indthkr
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To: drewh
So, if I am reading this correctly, Fitch says that our Dear Reader is an effing IDIOT who will personally cause the downgrade if he refuses to seriously consider actual budget CUTS - not decreased increases in spending!

Good, make sure that you pronounce that loud and proud to everyone:

President Obama's refusal to seriously consider budget cuts will result in a Fitch downgrade!
6 posted on 01/15/2013 1:13:37 PM PST by ExTxMarine (PRAYER: It's the only HOPE for real CHANGE in America!)
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To: drewh

So what?

Didnt interest rates go DOWN after the first downgrade?


7 posted on 01/15/2013 1:34:11 PM PST by sickoflibs (Losing to O is NO principle!)
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To: sickoflibs

Exactly. Rates fell to all time lows after the 2011 “debt ceiling crisis” that resulted in a downgrade. Fitch’s rating is pretty irrelevant.


8 posted on 01/15/2013 1:39:01 PM PST by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: Mich Patriot
Hmmm...If the US Govt was a corporation wanting to issue bonds, I wonder what its credit rating would be? They would have to extend the ratings scale to include ‘ZZZ’.

According to S&P's definitions: an 'C' or [more likely] 'D'.

9 posted on 01/15/2013 1:48:17 PM PST by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: MeneMeneTekelUpharsin
And with that news, bank stocks RISE? What in God’s name? The entire financial system is totally corrupt.

Finally a few more are joining the ranks some of us have been stating for yrs. This is the most corrupt democracy (republic) on the planet.

10 posted on 01/15/2013 2:16:59 PM PST by Digger
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To: drewh

I downgraded the US debt long ago. That Fitch has not yet done so is either their incompetence, or a measure of the comparative horrible options for investing in the world market.


11 posted on 01/16/2013 10:48:47 AM PST by AFPhys ((Praying for our troops, our citizens, that the Bible and Freedom become basis of the US law again))
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To: drewh

Holder will file suit against Fitch in 5...4...3...2...

Just like Moody’s


12 posted on 10/15/2013 3:52:01 PM PDT by shalom aleichem
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