JTF.ORG Forum
General Category => General Discussion => Topic started by: briann on August 05, 2011, 09:00:08 PM
-
IT's OFFICIAL!!!!!! S & P has now downgraded U.S. credit rating!!! HISTORY!!!
:'( :'( :'( :'( :'(
I hate being right all the time. Look how Obama has reacted to this!!!!!!!!!!
http://www.foxnews.com/politics/2011/08/05/us-official-says-sp-reconsidering-us-credit-downgrade/
S&P Downgrades U.S. Credit Rating From AAA
Published August 05, 2011
| Associated Press
* Print
* Email
* Share
* Comments
*
*
*
* Text Size
Developing: Credit rating agency Standard & Poor's says it has downgraded the United States' credit rating for the first time in the history of the ratings.
The credit rating agency says that it is cutting the country's top AAA rating by one notch to AA-plus. The credit agency said late Friday that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country's debt situation.
A source familiar with the discussions said that the Obama administration believes S&P's analysis contained "deep and fundamental flaws."
Read more: http://www.foxnews.com/politics/2011/08/05/us-official-says-sp-reconsidering-us-credit-downgrade/#ixzz1UCq2Mvfe
-
yes, obama and the libtards immediately blame everyone else for their mess. This is typical liberal fantasy-land thinking. Im sure deep in his mind he blames Bush for everything...
-
In pure Orwellian fashion, they'll find a way to blame the Tea Party and conservative republicans while absolving Obama and liberals.
I find it hilarious people are shocked that America's debt got downgraded. Does anyone here hold out any hope of America ever repaying its debt with the current government structure? It was inevitable. Nobody believes America's debt will ever be repaid and it probably never will be.
-
were screwed....
god help us
-
Interest rates won't skyrocket. Please everyone do not worry so much.
-
Interest rates won't skyrocket. Please everyone do not worry so much.
Even if they rise a tiny bit, the effects will be significant. This is predictable but still, incredibly historic.
-
This looks bad! :(
-
Even if they rise a tiny bit, the effects will be significant. This is predictable but still, incredibly historic.
"Because S&P left the U.S. short-term credit rating unchanged, the downgrade is unlikely to have a big impact on money market funds that own U.S. Treasury bills."
-
"Because S&P left the U.S. short-term credit rating unchanged, the downgrade is unlikely to have a big impact on money market funds that own U.S. Treasury bills."
I am very aware that S&P didn't change short-term credit rating (which will be downgraded down the road).
The S&P rating was for U.S. Government bonds (IE debt instruments with maturities over a year). This WILL have an affect on interest rates in various sectors. It will affect fixed-rate mortgages, credit card rates, car loans, etc. S&P has of course signaled that this will also lead to downgrading the debt of Fannie Mae, Freddie Mac, the ‘AAA’ rated Federal Home Loan Banks, and the ‘AAA’ rated Federal Farm Credit System Banks and the ‘AAA’ rated U.S. insurance groups.
As I said, rate adjustments will be small, and obviously the fed will respond with another round of quantitative easing to try to counter this, but it WILL have a huge affect.... unless of course, the U.S. suddenly reverses course (Very unlikely)
Obviously, when the other 2 major agencies downgrade our debt, it will be more significant, since there are still investors who are saying, 'maybe S & P is biased'. But this is still be hugely significant, and is the first step of many.
-
I am very aware that S&P didn't change short-term credit rating (which will be downgraded down the road).
The S&P rating was for U.S. Government bonds (IE debt instruments with maturities over a year). This WILL have an affect on interest rates in various sectors. It will affect fixed-rate mortgages, credit card rates, car loans, etc. S&P has of course signaled that this will also lead to downgrading the debt of Fannie Mae, Freddie Mac, the ‘AAA’ rated Federal Home Loan Banks, and the ‘AAA’ rated Federal Farm Credit System Banks and the ‘AAA’ rated U.S. insurance groups.
As I said, rate adjustments will be small, and obviously the fed will respond with another round of quantitative easing to try to counter this, but it WILL have a huge affect.... unless of course, the U.S. suddenly reverses course (Very unlikely)
Obviously, when the other 2 major agencies downgrade our debt, it will be more significant, since there are still investors who are saying, 'maybe S & P is biased'. But this is still be hugely significant, and is the first step of many.
Bond's maturity is 10+ years, T-bills are short term up to one year, and T-notes are from one year to 10 years.
Another thing to note is that only rating agency downgrading is S & P.
What America needs is more savings not more spending. Monetary policy is total disaster.
-
Bond's maturity is 10+ years, T-bills are short term up to one year, and T-notes are from one year to 10 years.
Another thing to note is that only rating agency downgrading is S & P.
What America needs is more savings not more spending. Monetary policy is total disaster.
The rating was NOT for 10+ years, it was for maturities of 1 year and more which includes both Notes and Long Bonds. (Sorry if I forgot to mention notes in the long term category, but I was in a hurry when I typed that)
Every rating agency (S & P, Moodys, and Fitch) only measure risk for short term (0-1 year) and long term (1+ years).
What people DONT understand, is that there are far more rating classifications for long term compared with short term. (I could explain the reasoning, but I its kinda long and boring) For example for the long term, PRIME & HIGH GRADE, S & P has 4 levels: AAA, AA+, AA, and AA-.
However, for short term, there is only 1 level: A-1+ in the High grade & Prime category. So while it may appear that S & P believes that the short term HASN'T changed its opinion of The U.S.'s short term risk, the fact is, S & P (along with Moodys and Fitch) only have 1 category, and it doesnt switch down to the next lowest category (A-1) until the Short term instruments becomes Upper Medium grade. (equiv of A+ to A in Long term). This is just off the top of my head, but I'm pretty sure I've included everything. (maybe I should copy and paste my lecture notes, LOL)
-
Those s and p bastards are the ones who belong in jail
-
"Because S&P left the U.S. short-term credit rating unchanged, the downgrade is unlikely to have a big impact on money market funds that own U.S. Treasury bills."
Its also likely to cause more stock market collapse as ironically big money will flow more into the longterm treasury bonds as a lower risk asset. The average americans are left the "bagholders" watching their investments collapse as big money players tank the market.
-
Which agency was it that had warned it would lower the rating if a debt ceiling raise wasn't reached ? That was very political and inappropriate. But as far as the actual lowering rating now by S&P- It is completely justified.