Rating agencies may have found a new punching bag, a really big one (Obama, compare)

[Neuling]

Seems those rating agencies have found a new victim, the US. Obama's reaction was similar to Sócrates' (the Portuguese prime minister) when those agencies started to destroy Portugal's reputation, classifying entire cities such as Lisbon as trash. Obama said he feels the rating agencies are misinterpreting the US situation

Somehow those agencies have become way too powerful. They make any statement and all of a sudden stocks and interest rates rise or fall, usually the latter. I wouldn't be surprised if they worked hand in hand with banks in order to manipulate financial markets.

S&P threatens to cut U.S. credit rating on deficit | Reuters

[summers73]

There is no way US government debt is AAA rated, in the real-world. Pimco discovered this long ago.

[Calvinist]

Originally Posted by Neuling

Seems those rating agencies have found a new victim, the US. Obama's reaction was similar to Socrates' (the Portuguese prime minister) when those agencies started to destroy Portugal's reputation, classifying entire cities such as Lisbon as trash. Obama said he feels the rating agencies are misinterpreting the US situation

Somehow those agencies have become way too powerful. They make any statement and all of a sudden stocks and interest rates rise or soar, usually the latter. I wouldn't be surprised if they worked hand in hand with banks in order to manipulate financial markets.

S&P threatens to cut U.S. credit rating on deficit | Reuters

That's what it's going to take for this country to get serious about cutting spending.

[summers73]

I predict "an accident" for anyone who even starts the rumor of a imminent debt rating cut.

[Neuling]

Originally Posted by summers73

There is no way US government debt is AAA rated, in the real-world. Pimco discovered this long ago.

If not AAA, what is it really like? Any countries with a similar rating, just to compare?
Those rating scales are quite complicated, and the big agencies don't use the same scale.

[summers73]

Originally Posted by Neuling

If not AAA, what is it really like? Any countries with a similar rating, just to compare?
Those rating scales are quite complicated, and the big agencies don't use the same scale.

One level above Greece. Perhaps two considering the economy is less rigid at present. However, increasing regulations are putting it more in line with Portugal or Greece with too much socialism to allow for flexibility in growth.

[Isitmeorarethingsnuts?]

Sounds to me as if they are recommending that the plan of either party is just a stepping stone. Looks like tough times ahead.

Maybe we need to do what Both parties are suggesting....Tax the highest bracket AND cut spending.

[HappyTexan]

We're not AAA.
mark to magic accounting, IOU's in the SS Fund, an empty Fort Knox, "toxic" paper at the Fed and a printing press in the basement.

We're more like junk bond status if you ask me.

[jmking]

Originally Posted by Neuling

Seems those rating agencies have found a new victim, the US. Obama's reaction was similar to Sócrates' (the Portuguese prime minister) when those agencies started to destroy Portugal's reputation, classifying entire cities such as Lisbon as trash. Obama said he feels the rating agencies are misinterpreting the US situation

Somehow those agencies have become way too powerful. They make any statement and all of a sudden stocks and interest rates rise or fall, usually the latter. I wouldn't be surprised if they worked hand in hand with banks in order to manipulate financial markets.

S&P threatens to cut U.S. credit rating on deficit | Reuters

Well I think they do. They rated prime mortgages as solid until it all came down. BS is what it is. My buddy told me 5 years ago what exactly was going to happen with the housing bubble and he was absolutely correct in all the fine details, he's in the banking business. The rating agencies were in on it. Otherwise Wall Street could never have pulled it off.