Unintended Consequences: Stimulus Package Speeds Up Potential For US Ratings Downgrade

PDOP ^ | 02/18/2009 | J Brown

[Jabrown]

Why Every American Should Be Concerned About US Bond Rating Thirteen months ago a report issued by Moody's raised concern among treasury department officials and financial analysts on Wall Street. Since US debt was first assessed in 1917, the United States has enjoyed a AAA rating by Moody's and an unique position as the strongest bond issuer in the world. However, in January of 2008, A Moody's report warned that if the United States failed to take corrective action concerning it's fiscal policies the country would face a ratings downgrade. Although the report cited the need for corrective action, the report also cited that based upon current obligations a ratings decrease could occur as early as 2012. At the time the report warned that Social Security and Health Care expenses posed the greatest threat to the United States' rating. That was one year ago, and since that time the Treasury Department has issued...

[Boiling Pots]

There is little doubt that the Government in Washington is purposefully trying to destroy wealth and wealth creation.

They know exactly what they’re doing.

[Puddleglum]

It’s like watching the Three Stooges try to fix the plumbing. They tweak this and that breaks, then they try to fix that and three other things break. At some point you have to say, “please stop trying to fix things!”

[jwparkerjr]

That could well be the case. But I think it's just a case of a lot of greed on the part of individual politicians. They are like the family with a new credit card, already deeply in debt and mortgaged to the hilt. As soon as that new card hits the mailbox it's back to the mall.

Politicians are a greedy, selfish lot. They can't see anything beyond the idea that they can buy votes with someone else’s money. The average hard-working honest citizen has absolutely no idea of what happens when a person is exposed to the kind of power that goes along with a seat in Congress.

The greatest irony to me is that this bunch of political animals will do to our country what the greatest nations and powers for the last 200 plus year have been unable to accomplish.

When you come right down to though, there's really no difference in the outcome, whether it's through your scenario or through the greed I've outlined.

[Boiling Pots]

Haha great analogy!