Posted on 04/18/2011 7:02:06 AM PDT by Red Badger
Standard & Poor's on Monday downgraded the outlook for the United States to negative, saying it believes there's a risk U.S. policymakers may not reach agreement on how to address the country's long-term fiscal pressures.
"Because the U.S. has, relative to its 'AAA' peers, what we consider to be very large budget deficits and rising government indebtedness and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable," the agency said in a statement.
The S&P said the move signals there's at least a one-in-three likelihood that it could lower its long-term rating on the United States within two years.
The U.S. dollar fell broadly on word of the revision. Gold prices, meanwhile, hit a new record above $1,496 an ounce.
"The headline has enough of a shock value. The initial reaction is that this is negative for dollar assets across the board." said Lou Brien, a market strategist with DRW Trading in Chicago.
Well, (.)bama wee weed on Ryan last week...today it is his turn to get wee weed upon by SandP.
Could have predicted this one with Pimco’s move out of US bonds over the past few months. The small investor is always the last to know, if they ever find out.
“Cuts Outlook to Negative”
Ya think??? It must be REAL easy to be a financial analyst. Just wait for something to be blantantly obvious then make a prediction.
Actually they just waited for all their buddies to be all in.....short.
They should have downgraded it back in November of 2008.
Don’t forget, the first part of any analyst is ANAL...................
No doubt! Bad news usually has been let out only after everyone is in on the short.
DeMint threatens to stall vote to raise debt limit
Posted 4/18/11 9:30 a.m.
by John Dempsey
CHICAGO (WLS) - A leading conservative U.S. Senator is threatening to bring things to a standstill in the Senate, to protest more spending.
South Carolina Republican Jim DeMint tells “The Don and Roma Show” on WLS, that he may filibuster an upcoming vote to raise the nation’s debt ceiling.
“The debt ceiling is a law that keeps us from spending more than we’re bringing in, at least indefinitely. We waived that law 10 times in the last 10 years and this is the fourth time President Obama has asked us to waive the law not to borrow more money. We have got to stop,” DeMint said.
DeMint says the debt ceiling should not go up until the nation passes a balanced budget amendment.
“The Democrat party structure, their power base, is built on making promises, spending, new federal programs. And if we pass a balanced budget amendment, all that comes to an end,” DeMint said. “But that’s what we have to do to save our country. That’s the next priority. We have to pass a balanced budget requirement.”
The White House has warned Republicans not to block a vote on raising the debt limit. Spokesman Jay Carney has said that doing that would be “Armageddon-like for the economy.”
http://www.wlsam.com/Article.asp?id=2163660&spid=
Never mind. Nothing to see here. USA Today says everything is fine since Obama was annointed:
Poll: U.S. economy improving despite global events
Updated 1h 8m ago |
WASHINGTON (AP) — Economists say the U.S. economy is gaining strength despite political unrest in North Africa and the Middle East and last month’s devastating earthquake and tsunami in Japan.
The headline S&P Affirms US AAA Rating, Cuts Outlook to Negative puts the best possible spin on today's announcement.
As they try to spin the announcement as if it is an AAA affirmation the talking heads on the network are at the same time accusing the S&P of being political in its timing. The anger that someone has finally said it out loud, combined with the realization that Obama kinda sort of had to admit that the debt is a problem has left them scrambling today.
I know I need to have to stop watching this network but its like an accident and its hard to look away.
The Federal government’s paper is crap. It doesn’t even warrant a junk rating. The fact they are only talking about a downgrade shows what a scam the entire rating system is. The US will default, either with inflation making the paper worthless or by an outright default, making the paper almost worthless. It doesn’t really matter, however it does matter from the standpoint of having a viable currency. If that is the goal of the admin, then an actual default is preferable.
Obamugabe’s New Zimbabwe.....................here we come!..............
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