Thread: S&P Threatens Another Rating Downgrade In As Little As Six Months…

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  1. #1 S&P Threatens Another Rating Downgrade In As Little As Six Months… 
    Destroyer of Worlds Apocalypse's Avatar
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    (Bloomberg) — The U.S., lacking a plan to contain $1 trillion deficits, faces the prospect of another rating cut in six to 24 months depending on the outcome of November elections, according to John Chambers of Standard & Poor’s.


    America has had an AA+ rating with a negative outlook since Aug. 5 when the New York-based unit of McGraw-Hill Cos. stripped the nation of its AAA ranking for the first time, citing the government’s failure to agree on a path to reduce deficits. The U.S. has a one-in-three chance of another downgrade, Chamber said today during an S&P sponsored Webcast.


    “What the U.S. needs is not so much a short-term fiscal tightening, but it has to have a credible medium-term fiscal plan,” said Chambers, managing director of sovereign ratings. “That is going to have to say something about entitlements, and that is probably going to have to say something about revenues.”


    Bond investors ignored the downgrade, driving Treasury yields to the lowest levels in history, amid concern the U.S. economy was stalling and as Europe’s debt crisis intensified. Treasuries have returned 3.9 percent since the rating cut and gained 9.8 percent last year, the debt’s best performance since 2008, according to Bank of America Merrill Lynch index data.


    “I don’t think anything is going to happen between now and the election in November,” Chambers said.


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    So by my understanding, if Obama is re-elected, they will cut our rating again. If Obama is defeated, depending on who we elect, they may cut it, and depending on if we get our shat together and correct this mess.
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  2. #2  
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    Quote Originally Posted by Apocalypse View Post
    [/INDENT]So by my understanding, if Obama is re-elected, they will cut our rating again. If Obama is defeated, depending on who we elect, they may cut it, and depending on if we get our shat together and correct this mess.
    Funny how American spends so much money on psychics and other scams.
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    PORCUS MAXIMUS Rockntractor's Avatar
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    Quote Originally Posted by Novaheart View Post
    Funny how American spends so much money on psychics and other scams.
    Which thread today does this have something to do with?
    How is obama working out for you?
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    Quote Originally Posted by Rockntractor View Post
    Which thread today does this have something to do with?
    He doesn't know. He merely saw the facts arrayed against his god,,,,,AGAIN, and he couldn't help himself. ;)
    Education without values, as useful as it is, seems rather to make man a more clever devil.
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    Senior Member Arroyo_Doble's Avatar
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    The last time they did that, our borrowing costs went down.

    I don't think anyone is listening to them anymore. Maybe it was their habit of taking cash for ratings or giving their AAA stamp to toxic, mortgage junk.
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    Quote Originally Posted by Arroyo_Doble View Post
    The last time they did that, our borrowing costs went down.

    I don't think anyone is listening to them anymore. Maybe it was their habit of taking cash for ratings or giving their AAA stamp to toxic, mortgage junk.
    Yeah, probably nothing to it. We should just keep printing money and spend until we run out of paper and ink. Nothing to see here, move along folks.
    Education without values, as useful as it is, seems rather to make man a more clever devil.
    C. S. Lewis
    Do not ever say that the desire to "do good" by force is a good motive. Neither power-lust nor stupidity are good motives. (Are you listening Barry)?:mad:
    Ayn Rand
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  7. #7  
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    Quote Originally Posted by Arroyo_Doble View Post
    The last time they did that, our borrowing costs went down.

    I don't think anyone is listening to them anymore. Maybe it was their habit of taking cash for ratings or giving their AAA stamp to toxic, mortgage junk.
    A few years ago I lost my ass buying only 5 star rated issues.:mad:

    Guess I won't be doing that again. S&P just couldn't seem to find a dot com stock they didn't like.
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