Skip to comments.S&P reveals why the U.S. lost its AAA rating
Posted on 04/24/2012 5:03:49 PM PDT by Oldeconomybuyer
The U.S. lost its top credit grade in August because of the imminent danger of a real liquidity crisis, and Standard & Poors made no errors in its analysis, said Moritz Kraemer, managing director of sovereign ratings.
S&P cut the rating by one level to AA+ on Aug. 5, criticizing the nations political process and saying that spending cuts agreed on by lawmakers wouldnt be enough to reduce record deficits.
Questioned Tuesday on why Finland is graded AAA while the U.S. has lost its top rating, Mr. Kraemer highlighted the differences in both nations political environment.
The debt ratio in the U.S. is much higher, the debt trajectory is more adverse, but most importantly, it has been our finding at least, people may come to different conclusions on that, but we felt the governance challenges that the U.S. political system is facing in generating a coherent strategy of getting the public finance challenge under control are more pronounced than they are in Finland, Mr. Kraemer said.
(Excerpt) Read more at business.financialpost.com ...
Translation: Americans keep electing Democrats.
Or republicans who want Democrats to like them.
the rating of AA+ is equally absurd
It’s the spending.
S&P was one of the key enablers of the financial meltdown
I personally believe strongly that S&P should not be to big to be held accountable.
Yeah.... Our country has turned into the family that pays its mortgage every month on their credit card, and pays for groceries every week on the credit cards as well. As soon as the interest we have to pay takes our entire 'paycheck', we're ruined.(interest rates going to 5% would probably sink us)
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