S&P Downgrades U.S. Credit Rating

[FirefightnRick]

S&P Downgrades U.S. Credit Rating

Lowering the nation’s rating to one notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less stable, less effective and less predictable.” It said the bipartisan agreement reached this week to find at least $2.1 trillion in budget savings “fell short” of what was necessary to tame the nation’s debt over time and predicted that leaders would not be likely to achieve more savings in the future.

Rick

Edited August 6, 2011 by FirefightnRick

[UNT90]

This is what happens when you don't do enough. Democrats, Pres. Obama, and the lilly livered Republican Party should be sooooo proud.

For those that thought any agreement to raise the debt ceiling would hold the AAA rating, think again. You can play politics all day long in Washington and lie to the American people, maybe even getting them to believe you, but eventually someone is going to read your financial legislation and hold you accountable, which is what Standard and Poors did. Now, lets hope the voters decide to start doing that.

When are less than 10 years away from the mess that is occurring in Europe. This country needs to stop watch Jersey Shore and wake the hell up.

Edited August 6, 2011 by UNT90

[THOR]

you know the obamapologists are going to blame this on bush...just like every other problem that america has right now...

[UNTflyer]

Hey, we've been sounding the warning for decades. Now the roosters have come home to roost.

The rich, middle class, and poor have to start ALL paying their fair share... and since the rich already pay an obscene tax rate and the poor... well we all know the poor won't be forced to contribute... that means the middle class will have to cough up.

And that means the entitlement programs will have to stop. Not reduce growth, not minor cuts... STOP. COMPLETELY.

No more Department of Education, no more food stamps, no more Section 8 housing, no more Medicare.

And, we have to stop the Social Security ponzi scheme. Let Americans manage their own 401K. In fact, REQUIRE Americans to maintain a 401K for the rest of their lives. Instead of Social Security deductions, you would have to contribute to your 401K.

The party is over.

[THOR]

no more food stamps

they need to stop the 'lone star' card for food stamps crap. it's just like a debit card and nobody is embarrassed to use it, therefore, don't care if they are on it. attach the card to a steering wheel or something large and humiliating so that every time they have to use the card, people know it...public humiliation works. give people a reason to get off of food stamps!

[Mean Green Matt]

you know the obamapologists are going to blame this on bush...just like every other problem that america has right now...

Actually, they are blaming it on a math error by S&P....as if we didn't deserve the downgrade anyway...

[MDH]

Man, if only we were as strong as those AAA rated CDOs that Goldman & co screwed the world on.

[UNT90]

Hey, we've been sounding the warning for decades. Now the roosters have come home to roost.

The rich, middle class, and poor have to start ALL paying their fair share... and since the rich already pay an obscene tax rate and the poor... well we all know the poor won't be forced to contribute... that means the middle class will have to cough up.

And that means the entitlement programs will have to stop. Not reduce growth, not minor cuts... STOP. COMPLETELY.

No more Department of Education, no more food stamps, no more Section 8 housing, no more Medicare.

And, we have to stop the Social Security ponzi scheme. Let Americans manage their own 401K. In fact, REQUIRE Americans to maintain a 401K for the rest of their lives. Instead of Social Security deductions, you would have to contribute to your 401K.

The party is over.

Let's not forget the constitution, here. No one should be forced to maintain a 401k. People need to start being responsible for themselves.. The government doesn't need to forrce anyone to save anything.

Monday is gonna be a blood bath on Wall Street.

Edited August 6, 2011 by UNT90

[Mean Green Matt]

Monday is gonna be a blood bath on Wall Street.

I sold just about everything this morning...I know the market could always go back up, but I figured it wasn't worth the anxiety it was causing me.

[Green2012]

I sold just about everything this morning...I know the market could always go back up, but I figured it wasn't worth the anxiety it was causing me.

Good call. Buy on the rise up.

[EagleGreen]

Too much overpaid douchery in D.C., and state governments.

[UNTflyer]

Let's not forget the constitution, here. No one should be forced to maintain a 401k. People need to start being responsible for themselves.. The government doesn't need to forrce anyone to save anything.

Monday is gonna be a blood bath on Wall Street.

Well, let's be honest. Social Security was created because people could not support themselves in old age. Remember that "retirement" is a fairly new concept in human history, and as such the Constitution does not address it. A 401(k) mandate would protect future generations from being subjected to ridiculous programs like Social Security.

A mandatory 401(k) would be just as constitutional as the current system. And it would be of far greater benefit to the economy having a constant stream of investment money to smooth out the rough spots.

But I'm open to a better suggestion.

[Green2012]

So in all seriousness how screwed are we come Monday morning when Wall Street's Keurigs begin brewing.

The government has really screwed us over the past 10 years. Too many career politicians.

Edited August 6, 2011 by Green2012

[TheTastyGreek]

USA!

USA!

USA!

Suck it, China. No more debt for you! BOOM!

[gangrene]

This wasn't unexpected. The credit agencies warned weeks ago that the cut needed to be $4 trillion - $2.1 trillion is barely half of that. Congress failed to heed the warning. The next major development will be losing the US dollar as the world's reserve currency. The IMF has already started those discussions:

IMF calls for dollar alternative

[UNTflyer]

The government has really screwed us over the past 10 seventy years. Too many career politicians.

Fixed.

And, oh.. we're screwed. They waited until Friday night to hopefully give everyone the weekend to chew it over and calm down, but I think it will only serve to let the enormity of the situation sink in.

We are so far beyond screwed that the light from Screwed will take 1 billion years to reach the earth.

[TheTastyGreek]

Fixed.

And, oh.. we're screwed. They waited until Friday night to hopefully give everyone the weekend to chew it over and calm down, but I think it will only serve to let the enormity of the situation sink in.

We are so far beyond screwed that the light from Screwed will take 1 billion years to reach the earth.

We're so far past screwed that we're Scrooged. And like Bill Murray, we're going to have to learn some hard, painful lessons before this is all over.

[Green2012]

We're so far past screwed that we're Scrooged. And like Bill Murray, we're going to have to learn some hard, painful lessons before this is all over.

I think I feel like many of yall. Its almost comical at the point. Once we lose our world's currency status, expect to see our imports skyrocket and pay $8 a gallon for gas. Or, we will then decide to open up North and South Dakota, Alaska, Gulf, etc. and start making dollar bills. Gosh we are screwed. I feel like Jelisa. #usa*******.

Edited August 6, 2011 by Green2012

[TheTastyGreek]

Professor, without knowing precisely what the danger is, would you say it's time for our viewers to crack each others' heads open and feast on the goo inside?

http://www.youtube.com/watch?v=4UuUkI1GW3Q&feature=related

[Coffee and TV]

[Mean Green Matt]

We are so screwed that our only hope may be that everyone else is more screwed than we are. If things get really, really bad, we have to hope it happens while we still have the power to crash the Chinese economy.

Also, I think it hurts things that a number like $14 Trillion is so huge that it is very difficult for the public to wrap their minds around. To many people I think it has just become a number with no real significance, and people think that we are the USA and nothing bad will happen....eventually (sooner than later) all of this is going to bite us hard in the butt.

[TheTastyGreek]

My favorite part of the Bush administration was when he traveled back in time to the colonial era and convinced Alexander Hamilton that deficit spending was the key to getting outside countries financially invested in the sustained health and growth of the US economy.

My favorite part of the Obama administration was when he used his magical Demmycrat powers to borrow money in the 1920s and 40s. That was awesome.

I think it's foolish, reductive, and intellectually dishonest to blame this on Bush OR Obama.

Obviously, it's the fault of illegal immigrants.

[UNTflyer]

Obviously, it's the fault of illegal immigrants.

And the entitlement mentality...

of Greeks.

[Green2012]

That's because champs like that have an inflated sense of worth.

[UNTflyer]

See the un-biased, absolutely accurate, and complete not misleading chart above.

OK, a few things...

First, tax cuts are not a cost. Unless you start from the belief that all money earned belongs to the government and it "costs" the government to allow you to keep any of it. And the tax revenues of 2007 were about the same as they were in 2000.

Second, the chart values "policy changes" of Obama at just $1.44 over the next 9 years. Nothwithstanding the ridiculous notion that the Obama deficits are only $160 billion a year, this number if based on 2009 budget numbers... 2009 is already a bloated deficit, so it's not a true apples-to-oranges comparison.

Here is a more accurate, more simple, and easier to decipher chart: