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The downgrade puts us below countries like UK, Norway, and others.
We are equal now to New Zealand and another one at AA+
It puts our rating by S&P below, but so what? This is an organization that rated toxic mortgage securities as AAA, its an organization that didn't even get basic budgetary arithmetic correct....
Quote:
Originally Posted by howard555
Stocks will suffer due to the downgrade.
Why? What information did S&P reveal that investors didn't already know?
S&P TOLD the U.S. Government what they expected to keep AAA rating.
Read their lips: $4.0 trillion in debt reduction over 10 years.
Bumbling Congress was told what was required and they delivered $2.5 Trillion.
I am ashamed to call myself an American. My ancestors had been here since 1750.
You are told how to keep your AAA and you fail.
the DOW futures at this moment, are showing down 200 points.
Sorry but you missed the point of what the credit agencies really wanted to tell the American people: pay out less of your entitlements and use the savings to pay off debt. Or jack up your taxes to pay up the difference. If you put out a national referendum on that, just how many people would back what the credit rating agencies would like to see?
Its an unwinnable debate. All the Congress can really do is say no more stimulus spending and end wars and discretionary spending. That pretty much amounts to the $2 trillion "cut". To go beyond it basically requires a reduction in entitlements and even the Tea Party doesn't want to tread there. What is needed and what the voters will approve are miles apart right now.
The downgrade puts us below countries like UK, Norway, and others.
We are equal now to New Zealand and another one at AA+
Right below us at AA is "guess who."
A country in the current news.....SPAIN.
Stocks will suffer due to the downgrade.
The real driver of the correction right now isn't US debt, its European debt. Nothing was done over the weekend in Europe so stocks will continue to feel pressure. What the market wants to see is a negotiated default on weaker debt in the EU and the necessary haircut being disclosed. Once investors have a better sense of how much pain there will be to pass around, the more certainty they will feel about the market. Downgrades just don't mean anything, the market already knows the data and situation the agencies consider when deciding on the rating.
The real driver of the correction right now isn't US debt, its European debt. Nothing was done over the weekend in Europe so stocks will continue to feel pressure. What the market wants to see is a negotiated default on weaker debt in the EU and the necessary haircut being disclosed. Once investors have a better sense of how much pain there will be to pass around, the more certainty they will feel about the market. Downgrades just don't mean anything, the market already knows the data and situation the agencies consider when deciding on the rating.
The ECB has decided to jump in and buy Italian and Spanish bonds, so yes, Europe has acted for now.
The way they are set up, it takes longer to get things done than it does in the U.S. since the Euro is made up of so many countries.
Germans and others do not exactly like the idea of bailing out other countries. I believe Dennis Gartman when he says in 2-3 years there won't be a Eurozone, it will be back to every country for themselves, sink or swim.
The way they are set up, it takes longer to get things done than it does in the U.S. since the Euro is made up of so many countries.
Germans and others do not exactly like the idea of bailing out other countries. I believe Dennis Gartman when he says in 2-3 years there won't be a Eurozone, it will be back to every country for themselves, sink or swim.
Which would be a huge victory for the United States defense of Dollar hegemony.
The ECB has decided to jump in and buy Italian and Spanish bonds, so yes, Europe has acted for now.
The way they are set up, it takes longer to get things done than it does in the U.S. since the Euro is made up of so many countries.
Germans and others do not exactly like the idea of bailing out other countries. I believe Dennis Gartman when he says in 2-3 years there won't be a Eurozone, it will be back to every country for themselves, sink or swim.
No they didn't. They said they would buy bonds. That means zilch. The market expects a haircut in the weaker EU economies and to say we will support the bonds doesn't really do anything but put off the reckoning unless its really believed that the EU will back 100 cents of the dollar payout for every bond its members issued. Fat chance of that.
Its causing market prices to become an issue worldwide because counterparty risk is coming on the radar. Much like 2008 every bank is becoming suspect based purely on their EU sovereigns exposure. Figure out the haircuts and then the banks can reprice their assets and the counterparty worries fade quite a bit. Until then you are seeing cascading effects where liquidity in Europe is seizing up and investors and companies in Europe are selling in the rest of the world to keep liquid today. This is actually a pretty easy to diagnose problem that is not getting covered except by the most astute observers.
I wonder where the stock market would be today, if..........
Congress had given S&P the $4.0 trillion in deficit reductions that S&P asked for?
(instead they snub their noses up and give S&P $2.5 trillion)
S&P told them how for the U.S. to keep it's AAA rating.
I aint willing to pay a damned thing. It's all going to crash, no matter what, so all my money is going into gold and preps. I don't agree with any of their expenses. Not the wars, not the ss, not the welfare to agriculture, none of it.
I aint willing to pay a damned thing. It's all going to crash, no matter what, so all my money is going into gold and preps. I don't agree with any of their expenses. Not the wars, not the ss, not the welfare to agriculture, none of it.
The is not an unlimited amount of gold.
That is why all persons can not use gold as the world's reserve currency.
There is not enough to go around.
If the other major countries of the world get tired of dealing with a AA+ negative watch rating like our's, they may create their own currency.
China holds alot of our U.S. debt and they are worried.
They are looking for alternatives.
Canada lost their AAA and it took them about 10 years to get it back.
U.S. Congress is more concerned about getting re-elected than to do what is right for the country.
To cut the deficit we need revenues (more taxes on the rich, etc.) and less spending on dumb projects. Not just one or the other. One of the smartest men alive, knows about wasted government spending = Donald Trump. He sees the waste.
If every American could afford it, which they can not, but if they could, and we all agreed to a one time tax of $46,000, the national debt would be zero. The debt is a little over $46,000 per person.
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