dreamdancer 0 #1 April 18, 2011 whoops... QuoteS&P downgraded the outlook for the US government's debt to negative from stable on Monday in a clear shot across the bows of Congress and The White House. In sharp contrast to every other developed economy, the US has increased its budget deficit in the last year in an effort to accelerate the economic recovery here. While President Barack Obama and the Republicans have in the last month laid out plans to reduce the deficit, S&P warned that a plan needs to be agreed upon within the next two years for the US to retain its status as a top borrower. "More than two years after the beginning of the recent crisis, US policymakers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures," said Nikola Swann, an analyst at S&P. The move by S&P sparked an immediate reaction in financial markets, with US government bond prices falling alongside the S&P 500. Gold prices jumped to a new record of $1,496. http://www.telegraph.co.uk/finance/economics/gilts/8458896/US-warned-over-debts-as-SandP-cuts-outlook-to-negative.htmlstay away from moving propellers - they bite blue skies from thai sky adventures good solid response-provoking keyboarding Quote Share this post Link to post Share on other sites
kallend 2,148 #2 April 19, 2011 Quotewhoops... QuoteS&P downgraded the outlook for the US government's debt to negative from stable on Monday in a clear shot across the bows of Congress and The White House. In sharp contrast to every other developed economy, the US has increased its budget deficit in the last year in an effort to accelerate the economic recovery here. While President Barack Obama and the Republicans have in the last month laid out plans to reduce the deficit, S&P warned that a plan needs to be agreed upon within the next two years for the US to retain its status as a top borrower. "More than two years after the beginning of the recent crisis, US policymakers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures," said Nikola Swann, an analyst at S&P. The move by S&P sparked an immediate reaction in financial markets, with US government bond prices falling alongside the S&P 500. Gold prices jumped to a new record of $1,496. http://www.telegraph.co.uk/finance/economics/gilts/8458896/US-warned-over-debts-as-SandP-cuts-outlook-to-negative.html S&P (along with Moodys) blew their credibility when they gave AAA ratings to the wonderful folks that brought us the global economic meltdown and destroyed the life savings of people who believed those AAA ratings meant something.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
nigel99 617 #3 April 19, 2011 QuoteS&P (along with Moodys) blew their credibility when they gave AAA ratings to the wonderful folks that brought us the global economic meltdown and destroyed the life savings of people who believed those AAA ratings meant something The ratings agencies still have the power to destroy countries though. Look at the effect changes in credit ratings have had on some of the European countries.Experienced jumper - someone who has made mistakes more often than I have and lived. Quote Share this post Link to post Share on other sites
Gravitymaster 0 #4 April 19, 2011 QuoteQuotewhoops... QuoteS&P downgraded the outlook for the US government's debt to negative from stable on Monday in a clear shot across the bows of Congress and The White House. In sharp contrast to every other developed economy, the US has increased its budget deficit in the last year in an effort to accelerate the economic recovery here. While President Barack Obama and the Republicans have in the last month laid out plans to reduce the deficit, S&P warned that a plan needs to be agreed upon within the next two years for the US to retain its status as a top borrower. "More than two years after the beginning of the recent crisis, US policymakers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures," said Nikola Swann, an analyst at S&P. The move by S&P sparked an immediate reaction in financial markets, with US government bond prices falling alongside the S&P 500. Gold prices jumped to a new record of $1,496. http://www.telegraph.co.uk/finance/economics/gilts/8458896/US-warned-over-debts-as-SandP-cuts-outlook-to-negative.html S&P (along with Moodys) blew their credibility when they gave AAA ratings to the wonderful folks that brought us the global economic meltdown and destroyed the life savings of people who believed those AAA ratings meant something. Right, pay no attention to those silly rating agencies. What do they know anyway? Let go piss away $2 trillion on healthcare. Do you know how much we will save? Quote Share this post Link to post Share on other sites
kallend 2,148 #5 April 19, 2011 Quote Right, pay no attention to those silly rating agencies. What do they know anyway? Not much, as the events of 2007-8 showed us all. The ratings agencies even argued in court that they can say almost anything no matter how invalid, based on their 1st Amendment rights. Here, this may help you.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
Gravitymaster 0 #6 April 19, 2011 Pretty funny video. To say they have no credibility is naive. Are you really going to suggest that their ratings mean nothing and will be ignored? Quote Share this post Link to post Share on other sites
kelpdiver 2 #7 April 19, 2011 Quote To say they have no credibility is naive. Are you really going to suggest that their ratings mean nothing and will be ignored? Their credibility has declined and are now measures on par wtih the average stock analyst. If you agree with their conclusion, you take them seriously. If you don't, you ignore it. But in this subject, it hardly takes a ratings agency to know that if the US can't even settle on a massive 1T+ deficit plan budget, you have to worry about their ability to pay. Quote Share this post Link to post Share on other sites
kallend 2,148 #8 April 19, 2011 QuotePretty funny video. To say they have no credibility is naive. Are you really going to suggest that their ratings mean nothing and will be ignored? Tell that to the people who lost their life savings on junk investments that the ratings agencies tagged "AAA".... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
Gravitymaster 0 #9 April 19, 2011 QuoteQuote To say they have no credibility is naive. Are you really going to suggest that their ratings mean nothing and will be ignored? Their credibility has declined and are now measures on par wtih the average stock analyst. If you agree with their conclusion, you take them seriously. If you don't, you ignore it. But in this subject, it hardly takes a ratings agency to know that if the US can't even settle on a massive 1T+ deficit plan budget, you have to worry about their ability to pay. I'm not saying whether I take their ratings seriously. I'm saying that if they downgrade our credit ratings we will suffer the consequences. Makes no difference if I or you or the Professor disagree or not. Or whether we think they have any credibility or not. Quote Share this post Link to post Share on other sites
billvon 3,116 #10 April 19, 2011 >I'm saying that if they downgrade our credit ratings we will suffer the consequences. Agreed. If this worries you, make it clear to your representatives that refusing to work together on a budget will result in them being replaced. Quote Share this post Link to post Share on other sites
lawrocket 3 #11 April 19, 2011 They're still giving the US Government at AA rating - which shows how bad things really are right now. If S&P thinks we're still in good shape we're fucked. To summarize John's point, it's bleak now but the future is rosy. My wife is hotter than your wife. Quote Share this post Link to post Share on other sites
dreamdancer 0 #12 April 24, 2011 QuoteSenior officials from the European Union, the European Central Bank and the International Monetary Fund are expected to make a "lightning visit" for two days to ensure Greece can meet plans to cut its deficit by €24bn (£21bn). The trip is being planned for May 9, although insiders said this could be brought forward to May 5. George Papandreou, the Greek prime minister, and other Greek officials have this weekend strongly denied rumours that Greece may be forced to restructure its debt imminently – possibly as early as this weekend. A year after Greece was forced to accept €110bn (£97bn) of financial aid from the EU and IMF, Greek government spokesman George Petalotis denied "the persisting international reports about a restructuring of the debt". George Papaconstantinou, the Greek finance minister, said that a restructuring or an extension of any of the €340bn national debt, which is set to hit 160pc of GDP by next year, was out of the question. http://www.telegraph.co.uk/finance/financialcrisis/8470171/EU-poised-for-Greece-crisis-talks.htmlstay away from moving propellers - they bite blue skies from thai sky adventures good solid response-provoking keyboarding Quote Share this post Link to post Share on other sites
