S&P downgrades US credit rating

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Submitted: Sat, 08/06/2011 - 2:03am
Updated: Sat, 08/06/2011 - 2:33am

WASHINGTON (AP) — Standard & Poor’s has downgraded the United States’ credit rating first time in the history of the ratings.

The credit rating agency says it’s cutting the country’s top AAA rating by one notch to AA-plus. It says it’s making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country’s debt situation.

A source familiar with the discussions says the Obama administration feels that S&P’s analysis contains “deep and fundamental flaws.”

S&P says in addition to the downgrade, it’s issuing a negative outlook, meaning there’s a chance it will lower the rating further within the next two years. It says such a downgrade to AA would occur if the agency sees less reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.

S&P says it has changed its view “of the difficulties of bridging the gulf between the political parties” over a credibledeficit reduction plan.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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7 Comments on "S&P downgrades US credit rating"

Made in America
2015 years 8 months ago

Yes, tax the hell out of ourselves, that will help, no doubt. Or, we could stop sending our money to china, India and Vietnam by buying the crap they make. BUY AMERICAN MADE GOODS, keep America working and increase our tax base.

Buy made in America, it matters.

2015 years 8 months ago

The deep and fundamental flaws aren’t with S&P, they’re with a government that simply can’t stop spending money like a drunken sailor.

Did you see how they fixed the FAA stalemate on Friday? Yes, it needed to be fixed, but the solution was taken stratight from the Bizarro World. The Democrats agreed to Republican demands that we stop subsidizing thirteen small micro-airports that only handle one or two flights a day in some cases. The Republicans then gave in to Democrat’s demands that the Secretary of Transportation be allowed to administratively reinstate those subsidies.

Then they all went around praising bi-partisanship and patting each other on the back. This was a great compromise to those who can easily lie to themselves.

We DESERVE this downgrade. I saw problems two years ago and stopped buying government bonds at that time. Forbes magazine ran an excellent article in the Summer of 2009 warning of out-of-control spending. We will now see interest rates start rising across the entire economy. Of course, Monday will be interesting in the both the bond and stock markets.

Since the political backbone to cut spending isn’t present in the majority of Washington, we have only two ways out of this incredible hole we have dug: We simply accept a devaluation of our currency, sparking massive hyperinflation, or we return to pre-Reagan, Draconian levels of taxing income. Nobody wants to see either, but just as a drug addict doesn’t want to lose his job, his home and his family, his addiction leads him to that end. Unless we get entitlement spending substantially reduced, we are going to lose everything. We will follow Rome, the Holy Roman Empire, the Third Reich, and the Soviet Union into history’s dust bin.

Five years ago I believed that the United States would fall in my grandchildrens’ lifetimes. Then I started to worry about it failing during my daughters’ lifetime. I’m no longer betting that it won’t expire before I do.

2015 years 8 months ago

borrow a page from Fidel.

Nationalize all foriegn investments and businesses. Start with Food Lion (Belguim owned) and all of those foriegn auto plants in our Country.

Then repudiate all foriegn debt.

Wipe the slae clean.

Then eliminate Medicaid and all of those entitlement programs which have gotten way out of hand.

By then it should be time to send the Annointed One, Geitner, and the Band of Theives off to some foriegn soil.

2015 years 8 months ago

Time to vote out all the career politicians, and vote in ‘regular joes’ – people with no political experience, but abundant common sense.

2015 years 8 months ago

I miss the good old days. Back when the S&P was giving all those bundled sub-prime mortgages triple-a ratings.

2015 years 8 months ago

The simple fact is that many products coming in from overseas are as good or better than anything we once made in this country. There are also segments of industry where overseas products are the only ones available: Try to find an American-made television, camera, or high-end stereo.

Your solution is not only inadequate to the scope of the problem, it’s essentially impossible. If people aren’t even hiring, what makes you think they’re willing to sink millions into building a factory and equipping an assembly line to build American-made products. No one is willing to go back to paying $800 for a small TV, simply to employ Americans.

The global economy has given the American consumers trillions in disposable income, and they’re not going to give that up.

2015 years 8 months ago

90,000 dollars to fund a survey on the sexual performance of gay males. 50,000 dollars to fund a mime troupe play.
These are just two of the government grants given free and clear to crap.
If you need to fund a study or something for the arts, go out and raise the money. If you believe in what you are doing you will find a way.
The above figures represent 140 families worth of wasted tax dollars for one year.
Stop government fraud, waste and abuse.
The adminstration that is in place now is a joke. Stop throwing money away. Cut unemployment, it only enables those who would otherwise go get jobs.
This adminstration has not created one permanent job, not one. If you think they have, you better check your facts again.
Raise the debt ceiling, what a joke, cut spending on crap like I mentioned above.
Oh Yeah! and while we are at it let me pay for the people who want to ride the bus to Doucheville Beach, I mean Wrightsville:(
The Government has been allowed by the brain dead uniformed voter to go straight to pot.