S&P Lowered US' Credit Rating

[markpetersonii]

http://www.usatoday.com/money/economy/2011...es-credit_n.htm

WASHINGTON — Credit rating agency Standard & Poor's on Friday downgraded the United States' credit rating first time in the history of the ratings.

The credit rating agency said that it is cutting the country's top AAA rating by one notch to AA-plus. The credit agency said 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 feels the S&P's analysis contained "deep and fundamental flaws."

S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. It said such a downgrade to AA would occur if the agency sees less reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.

S&P first put the government on notice in April that a downgrade was possible unless Congress and the administration came up with a credible long-term deficit reduction plan and avoided a default on the country's debt.

After months of wrangling and negotiations with the administration, Congress passed this week a debt reduction package at the 11th-hour that averted a possible default.

In its statement, S&P said that it had changed its view "of the difficulties of bridging the gulf between the political parties" over a credible deficit reduction plan.

S&P said it was now "pessimistic about the capacity of Congress and the administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics anytime soon."

[Killiger2009]

yep and my stock tanked from 9.80 to 7.02 it sucks but we saw this coming for a while and they raised the debt ceiling.....their just digging out grave deeper and deeper...it's funny that someone on yahoo posted 48 pics of what n. korea looks like today LULZ

http://news.yahoo.com/photos/special-glimp...8944-slideshow/

o and heres pics of my bunny!

http://www.facebook.com/media/set/?set=a.2...5585&type=1

[markpetersonii]

lol ok?

[[ChaosweaveR]]

And the downfall of the US continues...

Also, this is why I don't invest in the stock market. FORD that noise.

[havoc1482]

This is why I keep all my bottle caps. Currency for the future

[99gagt3x00]

' date='Aug 6 2011, 12:00 AM' post='58076']

And the downfall of the US continues...

Also, this is why I don't invest in the stock market. FORD that noise.

seems like we are all aboard the titanic on this one. slowly sinking but no one wants to jump off.

or just invest in the oil companies and you would probably clean up quick since they are always posting record profits.

[markpetersonii]

I think it's time I start throwing money into Beer companies. Everyone turns to booze when the economy takes a shit.

[99gagt3x00]

i thought they did the whole debt bill to preserve the AAA credit rating.

[markpetersonii]

i thought they did the whole debt bill to preserve the AAA credit rating.

S&P dropped it because they think that the $2+ trillion increase won't do anything. Their right in point of view. They also are saying that it'll more than likely decrease even more. :/

[96firephoenix]

so when the US defaults on their loans, what happens to us?

[99gagt3x00]

S&P dropped it because they think that the $2+ trillion increase won't do anything. Their right in point of view. They also are saying that it'll more than likely decrease even more. :/

yeah but every news cast kept spewing that the deal would preserve the AAA credit rating.

this whole thing is a disaster. maybe now the gov will learn to spend within their means.

[Ringo64]

I think it's time I start throwing money into Beer companies. Everyone turns to booze when the economy takes a shit.

I think this is the smart approach because people will buy beer if we're doin good or if we're doin bad

[havoc1482]

I think it's time I start throwing money into Beer companies. Everyone turns to booze when the economy takes a shit.