I got a call from a friend this afternoon asking about the rumor that S&P was going to downgrade the US after the close. I called around but no one could confirm anything; one guy even told me that S&P had denied it, although he was unable to produce evidence of that. Now it seems it was true. The USA under president Barak Obama has just lost it's AAA credit rating.
Moody's and Fitch both responded to the very substantial political pressure that was put on them by the Whitehouse and have decided not to downgrade at this time. S&P would rather care for their credibility.
10 comments:
For the first time in history, the United States of America is no longer a AAA country.
The Titanic is still afloat, the lights are still on, and the orchestra will keep playing. The captain will make calls for calm and people will try to ignore the horrible reality. But make no mistake, the U.S. economy is mortally wounded.
Like so many great countries who thought the laws of nature were for lesser nations, the time of reckoning has arrived.
Good night, America. Good morning, Greece.
Great job, Obama... you did it!
We thought the U.S. economy was idiot proof. Next time we vote, we better think twice.
I don't want to trust my tax money to a AA+ country. God knows, it may not honor its promises!
Jimmy Carter is celebrating at home... "I'm no longer the worst president in history!".
Isn't "the full faith a credit of the United States" a deceitful marketing trick going forward?
Beware the lawsuits, Mr. Geithner.
In 1999 when I was chained to an oar at Moore capital was the first time I told the following joke:
"If the US ever defaults on it's debt, don't worry about gold and silver... because the only commodity that will really be worth anything is bullets."
Back then I literally thought martians would land in central park before the Us would even seriously risk a default. this is not a default of course, but it does make one a realistic and 'hedge-able' probability.
Oh how the mighty have been brought low....
Everyone. look at your spending/personal debt/The I want generation. It cannot be sustained.
Congratulations to all our elected representatives who have accomplished an unprecedented feat. Never before in the history of the United States has our credit rating been below AAA. Congratulations for abdicating on your sworn responsibility to obey the laws of the US Consitution and refusing to debate each of the three wars in which we are involved. Congratulations on your continued refusal to get the Federal Budget under control and practice simple fiscal discipline.
You should all be proud of your record here and will be remembered in the history books for your lack of leadership.
What drugs are you taking. S&P want to hold on to their credibility? They have no credibilty. They kept ABS at A+ when they were worthless and helped cause the hole we are in now.
The majority of Obama spending is voluntary entitlements that would have happened anyway.
The republicans have balls to hold washing ton hostage in the nidst of the worst financial crisis and wrecklessly highlight default and hold a ceiling on debt and slant with overr spending when Bush had a complete blank check and unchecked spending and has helped choke the U.S> and put it in te position it is today.
How hypocritical and timely the republicans become concerned about spending. What a laod of crap. If they were in office they would be decreasing taxes and raising the natioanl debt and would not be mentioning over spending or holing the US hostage with debt ceiling propaganda.
An excellent example of 'deep thinking' from a modern liberal. Tantrums, finger pointing, and blame - all in the form of a campaign talking point. Nothing that helps.
The good news is, everyone can see what the Democrats are now. The best thing they can do for the country now is go away and let those of us who know how to fix this, fix it.
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