Friday, August 05, 2011

US govt's credit rating downgraded for 1st time

MSNBC: US government loses triple-A credit rating

"US debt now rated lower than some European countries'; rating agency says deficit plan doesn't go far enough

...U.S. Treasuries, once undisputedly the safest investment in the world, are now rated lower than bonds issued by countries such as the United Kingdom, Germany, France or Canada."

A bunch of socialist countries are doing better than we are economically? How'd that happen?

This comes at the end of a week in which stocks are down what, 4%? I wonder how this will affect mortgage interest rates.


Dolly said...

It is true though that the U.S. doesn't deserve AAA, in light of all the T-bagging and Boehners.

Still, AA+ is not all bad. Russia for example is another 7 notches below

madtom said...

Stocks plunging, credit ratings downgraded, no problem, just spend more...What else could the solution be?

Cant wait till we are at the same level all Russia

Iraqi Mojo said...

Raise taxes and spend more on infrastructure, especially clean tech.

Pisa said...

If you were a tycoon, would you pay higher taxes or take your money and invest in a country with lower taxes?

Hurt the employers, and the employees are likely to support the consequences.

Obama will go down in history as the worst american president ever.

C.H. said...

"A bunch of socialist countries are doing better than we are economically? How'd that happen?"

It didn't. Eurozone countries like Spain, Italy, Portugal, and Greece are going down the tubes economically faster than the US is under Obama.

madtom said...

Airplanes like birds have wings, and can fly away

Iraqi Mojo said...

"U.S. Treasuries, once undisputedly the safest investment in the world, are now rated lower than bonds issued by countries such as the United Kingdom, Germany, France or Canada."

Is that a false statement?

madtom said...

"Raise taxes and spend more"

How about the Senate pass a budget?

Have you ever walked into a restaurant and been asked to sign the credit card bill first and then been seated and shown a menu?

I think it works the other way around. The senate should show us the budget first, so we can see what is they have to offer, then call for more taxes

Maury said...

Mortgage rates are still at, or near, historic lows Mojo. Even with the carnage last week, rates on 10 yr. treasuries dropped about half a point, to 2.3%. That's with markets knowing the downgrade was coming.

I wouldn't fret too much about the dollar. Yes, we're headed for bankruptcy at breakneck speed. True, the system can't take another 4 years of this massive mismanagement. Still, the dollar is traded against a basket of currencies that have the same problems, or worse. If you want to buy something tangible (like gold or silver) with your dollars, you'll pay 5-10X what you might have just a few years ago. But, all the world's currencies are next to worthless at this point. Most experts believe the dollar is still the best worthless investment of all the currencies.....LOL.

Anonymous said...

A little funny that there are still people that blame this on "the tea baggers and the Boehners" when the credit agencies were very clear about wanting to see 4T in cuts and the "tea baggers" were the only ones fighting for it.

The fact is, we have a useless President with no plan and I am looking for "hope and change" in 2012...

Iraqi Mojo said...

So the credit agencies want to see spending cuts? Or do they just want to see deficit reduction, regardless of how it's done?

'House Budget Chairman Paul Ryan (R-WI) said he is open to revenue increases as part of a deal to reduce the deficit today, seemingly shifting positions from the hardline opposition his party has maintained against revenue growth. Ryan said on Fox News Sunday that he would be open to a deal that containes $3 or $4 in spending cuts for every $1 in revenue increases if it came through a major reform of the tax code and was large enough. Host Chris Wallace asked if Ryan would be open such hypothetical deal if he were sitting on the joint super committee created by the deal to raise the debt ceiling. Ryan responded, “yes” '

Iraqi Mojo said...

Obama is in trouble with the left too. Maureen Dowd: 'BARACK OBAMA must wonder sometimes if his luck has run out.

Maybe he used it all up in 2008.

“Yes, we can!” has devolved into “Hey, we might.”

“When I said, ‘Change we can believe in,’ I didn’t say, ‘Change we can believe in tomorrow,’ ” he told an audience at a Chicago fund-raiser on Wednesday. “Not, ‘Change we can believe in next week.’ We knew this was going to take time, because we’ve got this big, messy, tough democracy.”

True enough, but not F.D.R.-inspiring to a deflated and desperate nation that may face higher borrowing rates after the shock of the first credit downgrade in United States history.

Barack Obama blazed like Luke Skywalker in 2008, but he never learned to channel the Force. And now the Tea Party has run off with his light saber.

The dissonance of his promise and his reality is jarring.

When he had power, he didn’t use it. He wanted to be a “transformational” president like Ronald Reagan, but failed to understand that Reagan’s strategic shows of strength allowed him to keep the whip hand without raising his voice.

And now, just when the high school principal in the Oval has been browbeating Congress to help create jobs, he is once more distracted from that task as he tries to save his own.'