Posted on 04/20/2011 7:55:13 AM PDT by Qbert
The Obama administration privately urged Standard & Poor’s in recent weeks not to lower its outlook on the United States — a suggestion the ratings agency ignored Monday, two people familiar with the matter said.
Treasury Department officials had been discussing with S&P whether the ratings agency should change its outlook on the United States to “negative” from “stable,” an indication that the country could lose its crucial AAA rating in coming years over its soaring debt levels.
Treasury officials told S&P analysts that they were underestimating the ability of politicians in Washington to fashion a compromise to curb deficits, a Treasury official said. They argued a change in ratings was not needed at this time because the debt was manageable and the administration had a viable plan in the works, the official said.
[Snip]
It is not uncommon for companies and governments to push back when they don’t agree with a decision made by a credit ratings agency. Sometimes, companies that issue debt — which also pay for the ratings — will shop around for the best rating.
But the U.S. government is an unusual case — it doesn’t solicit ratings. S&P and the other major credit rating agencies offer their judgments notwithstanding.
(Excerpt) Read more at washingtonpost.com ...
that is exactly where my thoughts went too.
I’m glad at least S&P didn’t knuckle under whatever threats were made.
but now ya gotta wonder what sort of revenge the WH is cooking up
Silver is past $45/oz today, up 250% from one year ago.
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