[CNBC] S&P contacts White House to notify about a downgrade coming

You're right. Obama is doing absolutely nothing. The only one stopping Obama from doing anything is the stubborn ass Republicans that would rather have a presidential seat reserved for them than save the US economy.

That "I will rule this country or have it burned to the ground" ideal among Republicans is frightening at best.

 

You must be extremely new to the internet

 

Didn't you see the other thread about them warning if us didn't cut by 4 billion they would cut the rating?

The demand for US treasury notes is still pretty strong so this shouldn't affect anything too much.

 

it's sounding like this is all going to get pinned on Obama. I can't believe this ****.

 

Just imagine yourself buying corporate bonds, and the board of the company gets some new members who want to cut revenue at all costs, and I mean ALL costs. Think you would sell the bonds? I sure would.

 

Paul Krugman takes a swipe at S&P in his New York Times blog, while still acknowledging that Republican financial policies have made the United States “fundamentally unsound.”

“On the other hand, it’s hard to think of anyone less qualified to pass judgment on America than the rating agencies,” he said. “The people who rated subprime-backed securities are now declaring that they are the judges of fiscal policy? Really?”

Ouch. But that has been a common refrain among observers: Because ratings agencies messed up so badly on rating mortgage-related securities at the height of the U.S. housing bubble, they no longer have the credibility to rate anything -- or least U.S. government debt. (Greek debt, Irish debt and Portuguese debt, it seems, are fair targets.)

But Mr. Krugman also goes after S&P's rationale for the downgrade, focusing on what he sees as S&P's concern that the U.S. failed to agree on $4-trillion (U.S.) in deficit reduction over the next decade.

“Yet U.S. solvency depends hardly at all on what happens in the near or even medium term: an extra trillion in debt adds only a fraction of a percent of GDP to future interest costs, so a couple of trillion more or less barely signifies in the long term,” he said. “What matters is the longer-term prospect, which in turn mainly depends on health care costs.”

“In short, S&P is just making stuff up — and after the mortgage debacle, they really don’t have that right.”

http://www.theglobeandmail.com/glob...downgrade-fingers-point-at-sp/article2121898/

 

if you read their report, its more based on the dysfunctialness (is that a word) of Washington.

 

Yes. Those tea party uncompromising idiots.

 

Wow! IT is all about the Timing of finding the error.
This is like the REF calling a bad foul on the last shot of a game.
He can demonstrate how fair he was for that team all game long
but . .the timing of this particular error . . . loses the game

Obama got Donaghy'd!!!

Rocket River

 

Republicans: Can someone demonstrate how. . the plan the TEA PARTYers *wanted* would have prevented this from happening

Rocket River

 

Well, the plan they wanted was a balanced budget immediately. No one had any idea how to actually make that happen, but it would certainly have stopped us from issuing any more debt. An immediate $1 trillion cut to government spending would have led to a massive depression, reduced tax revenues, further government spending, and eventually maybe a death spiral to the economy, but those are minor details.

 

That should say "further government spending cuts", which would lead to more economic slowdown, and thus the death spiral.

 

Of all your wrote . .this stands out because it is something that
comes to my mind from time to time too.

I think he is 'playing not to lose' rather than 'Playing to WIN!'
and he is losing.

The Prevent Defense is losing.
He keeps this up . . . he might lose in 2012 . . .
and I can honestly say . . .6 months ago i thought him a cinch to win.

it is a spin war. . and he is losing.

Rocket River

 

Everyone shares blame in this.

Dems/Obama are partly (maybe 20-25%) to blame for not simply raising the Debt Ceiling when they had the opportunity. Rather than do what was best for the country, they wanted to play political games and force the GOP to double down. Probably good politics but bad idea for the country.

The GOP (mainly the Tea Partiers) shoulder the rest of the blame for their recent brinksmanship, their refusal to consider any tax increases as part of the solution, and their general ignorance regarding the consequences of their actions.

 

Yeah -

A string of Stupid decisions that turned America from a once great nation into the PoS that it now is.

Only president that did anything good for the country was Clinton... Actually Bush Sr did quite a bit by cleaning up the $h*t left by Reagan.

 

When exactly was that opportunity? The last time they had unilateral ability to do that was early 2010 - more than 18 months ago. Even if you just go back to last year, historically, the debt ceiling is never really raised 8 or 9 months in advance. No way the GOP wouldn't have just filibustered anything of the sort.

 

Someone should just nuke Wall Street.