Skip to comments.Egan-Jones cuts U.S. rating (based) on debt burden (AA -- now only 3rd highest rating)
Posted on 04/06/2012 9:16:39 AM PDT by xzins
NEW YORK, April 6 (Reuters) - Egan-Jones Ratings downgraded the credit level of the United States as Washington has struggled to reduce the federal debt burden, which is projected to surpass the size of the country's economy.
The independent rating firm, which issued the downgrade late Thursday, said its senior debt rating on the United States is now AA, its third highest rating, down one notch from AA-plus.
It also maintained a negative watch on the world's biggest economy as the federal debt load could rise to $16.7 trillion at the end of 2012. U.S. gross domestic product, in the meantime, could grow to $15.7 trillion, assuming it would grow at a rate of 2.5 percent, the firm said.
The firm downgraded the United States for second time in less than nine months "because of the lack of any tangible progress on addressing the problems and the continued rise in debt to GDP," said Sean Egan, co-founder of firm, in an e-mail statement.
Egan-Jones's downgrade did not elicit major market responses. U.S. government debt prices jumped on Friday after news of much weaker-than-expected job growth in March renewed bets the U.S. central bank would embark on more bond purchases to foster economic growth.
Back in mid-July, Egan-Jones stripped the United States' of its top AAA-rating amid the debt ceiling fight in Washington that stoked fears of a federal default.
(Excerpt) Read more at reuters.com ...
Cue Nelson pointing at obama, “ Ha-haa! “
Spending is beyond saying it's "out of control". Spending is entirely impulse and an addiction for our government....democrat and republican alike.
I can say with the utmost confidence that it is unprecedented and extraordinary for Egan-Jones to reduce our debt rating based on our debt, inability to pass a budget, spendthrift president and spineless Congress.
Doesn’t Egan-Jones understand we have caring and compassionate government overlords.
Guess we’re on our own after all.
Apparently, our non-law professor is also a non-economist.
dictating to us proletarians.
Who is Egan-Jones? Do they matter?
Yes. They were the first to strip the US of its AAA rating last year.
Also, they are one of a limited group of raters recognized by the Securities and Exchange Commission
“Who is Egan-Jones? Do they matter?”
What matters is that they are absolutely correct, and everyone with ANY economic aptitude knows it.
In fact, I would say they are markedly UNDERstating the case for downgrading the USSA.
The real question is whom Bambi has bought off at Moody’s and Fitch in order to keep the AAA rating?
Okay, thanks. Didn’t know who they were.
Some firms get paid for their ratings by investors in their company. Others get paid by the people they rate.
Egan doesn’t get paid by those they are rating, so they have a higher probability of being independent in their thinking.
Debt rating? America only cares about women’s issues.
mmm mmmm mmmm
Obama’s gettin his way.
OF course we’re broke, we’ve been bailing out economies all over the world.