[jjgold]

BAD NEWS

First time in USA history

[jjgold]

S&P considering first downgrade of U.S. credit rating





Updated: Friday, August 5, 8:18 PM


Standard & Poor’s plans to enact the first downgrade of the U.S. Sterling credit rating was delayed Friday night when the Treasury Department said that it had found a math error in the firm’s calculations, according to news reports.
The White House was bracing for the downgrade, the reports said, after S&P officials advised the Treasury that it had decided to lower the AAA credit rating, which the U.S. government has held for 70 years. S&P decided to lower the rating after a bipartisan debt deal



But administration officials told the firm that it had wrongly calculated the nation’s deficit projections, according to the reports.
It was unclear when, or whether, the S&P would issue its downgrade in light of the mistake. Neither S&P nor the Treasury responded immediately Friday night to inquiries about the matter.
Standard & Poor’s has warned Washington several times this year that, unless the federal government took steps to tame its debt, its credit rating could be lowered.
Analysts have said a downgrade could increase the cost of borrowing for the U.S. government and lead to tens of billions of dollars in more interest costs per year. That could translate into higher borrowing for consumers and businesses, too.
A downgrade would also have a cascading series of effects on states and localities that rely on federal funding, including in the Washington metro area, potentially raising the cost of borrowing for schools and parks.
But the exact impact of the downgrade won’t be known at least until Sunday night, when Asian markets open, and perhaps not fully grasped for months. Analysts say the immediate term impact is likely to be modest because the markets have been expecting a downgrade by S&P for weeks.
Some analysts are worried about the impact of a downgrade on markets where Treasurys are held as collateral and the AAA rating is required. But most analysts don’t expect this issue to pose a major problem.
The downgrade by S&P is the most tangible vote of disapproval so far by Wall Street on the deal between President Obama and Congress to cut the deficit by at least $2.1 trillion over 10 years. S&P has said that it wanted at least $4 trillion of deficit reduction.
The downgrade is likely to be used as a weapon by both Republicans and Democrats as they argue the other side has not taken deficit reduction seriously.
Other credit rating agencies — Moody’s Investors Service and Fitch Ratings — have decided not to downgrade the United States credit rating. But they’ve warned that, if the economy deteriorates significantly or the government does not take additional steps to tame the debt, they could move to downgrade too.
In April, S&P first said it might downgrade the United States credit rating on concerns that lawmakers would not be able to come to a deal on reducing the debt. In July, as efforts stagnated, S&P said the odds of a downgrade within three months had moved up to 50 percent.
The ultimate deal between Obama and Congress ultimately failed S&P’s benchmark. Obama administration officials have been critical of S&P for making what was essentially a political judgment and for failing to conclude that the country was making a strong first step to reducing its deficit.

[SportsMushroom]

they 'miscalculated' the nations deficit so they are delaying the downgrade?

yeah right, they aint downgrading shit, the bankers gave them a call and let them know who's boss

[BettingGeek]

junk bond

[Git Lo]

this would be bad news but how does it happen?

[Fishhead]

Should be downgraded more.........


Again, congrats to all that made the clutch move of cashing out their 401's recently.................brillant.

[Tech N9ne]

No big deal

Business as usual

[Cap dat 4ss]

Settle down baldy, we'll be fine. Quit acting like the town is on fire when in it's just your rug that is on fire. S&P can go fukk themselves. Most of us won't even notice this.

[excel]

[CarpeDime]

jj DO SOMETHING!!

[iceminers26]

USA = Buried

WTF happened to this once great nation

[Br0nxer]

jj DO SOMETHING!!

carper call me you fukkin prikk

[Tech N9ne]

USA = Buried

WTF happened to this once great nation

8 years of George W Bush

That's wtf happened.

[benjy]

Cool pie chart Excel.

Source?

[excel]

Cool pie chart Excel.

Source?

http://thesantosrepublic.com/2011/06...reasury-bills/

[maersksealand]

they 'miscalculated' the nations deficit so they are delaying the downgrade?

yeah right, they aint downgrading shit, the bankers gave them a call and let them know who's boss

interesting subject...what if the bankers want to destroy the dollar, America and the world...to setup a new world order and a new currency ?

[excel]

administration calling the downgrade amateur hour at s&p

[crustyme]

American families lost a total of $19.4 trillion (in 2010 dollars) in household wealth from June 2007 to March 2009

http://www.americanprogress.org/issu...recession.html

[benjy]

http://thesantosrepublic.com/2011/06...reasury-bills/

Thanks dude.

[Git Lo]

interesting subject...what if the bankers want to destroy the dollar, America and the world...to setup a new world order and a new currency ?

is this enough to do it?

[William Walters]

USA = Buried

WTF happened to this once great nation

Too many freeloaders and the past 25 years of immigrants.

[Jnas]

8 years of George W Bush

That's wtf happened.

More like 2 years of your Lord Obama.........

[jarvol]

What exactly does Bush have to do with this?

[crustyme]

More like 2 years of your Lord Obama.........

[benjy]

What exactly does Bush have to do with this?

Sweet mother of goodness!

You post a graph with no context; not even dates. How useless.

[no1here]

This is not good and indeed really bad that will effect our pockets.

[jarvol]

Sweet mother of goodness!

You post a graph with no context; not even dates. How useless.

National Debt 2011-2021

Are you dumb or just stupid?

[Tech N9ne]

Crustyme already on top of it

The charts don't lie

George W Bush is responsible

[Tech N9ne]

Lets go to two wars and give tax cuts to the rich

Ahhhhh the Republican way

[crustyme]

What exactly does Bush have to do with this?

bush lost 4 million jobs 2007-8 and americans lost $19 trillion in personal wealth from 2007-9.

do you think the economy headed towards another great depression would rebound all on its own?

[benjy]

National Debt 2011-2021

Are you dumb or just stupid?

Well as I can both talk and understand that a graph such as the one you posted, even one without context, needs dates to be even superficially relevant I would say neither.

From what you've posted however I cannot say the same for you.

[pavyracer]

Bush destroyed the country. There is a reason he is the worst president in history.

[Jnas]

Nice graphs all these government figures are total BS. If you honestly think the country is improving you are really kidding yourself. Most job #'s are skewed becasue of all the people that have totally given up in finding work. At a certain point many republicans even admitted Bush was a clown. But all you Democrat Fanboys will continue licking Obama ass all the way down. hope he enjoys his $5 million Vineyard vacation.

[benjy]

Nice graphs all these government figures are total BS. If you honestly think the country is improving you are really kidding yourself. Most job #'s are skewed becasue of all the people that have totally given up in finding work. At a certain point many republicans even admitted Bush was a clown. But all you Democrat Fanboys will continue licking Obama ass all the way down. hope he enjoys his $5 million Vineyard vacation.

Good post.

[Reload]

JJ - Will the loan sharks in Newark and Paterson will be raising their interest rates due to this?