Posted on 08/01/2011 5:58:57 PM PDT by tobyhill
Even if Congress approves a deal to raise the federal government's debt ceiling, the U.S. could still lose its coveted AAA debt rating sometime in the next six months, largely because the proposed agreement does not cut enough spending.
The three main ratings agencies declined to comment Monday on the prospect of future downgrades. But the agencies, along with economists and analysts, have signaled that doubts about the nation's debt will persist.
Moody's Investors Services has said it will probably rate the U.S. debt as AAA for now but with a negative outlook — a rating that indicates a possible downgrade yet to come.
Fitch Ratings has indicated the deficit must be reduced to a "more sustainable level" for the U.S. to maintain its AAA rating. And Standard & Poor's has said any deal to raise the debt ceiling must cut at least $4 trillion from future budget deficits or the rating will probably be lowered to AA.
The proposal crafted by Obama and congressional leaders cuts only about half that amount, which led at least one expert to suggest that S&P could still downgrade the rating as early as next month.
(Excerpt) Read more at google.com ...
We will losse AAA if we take on more debt.
The answer is to cut,cut,cut.
Cue Captain Obvious.
by design
The United States of America opted for terminal cancer this afternoon.
The Debt Ceiling was never the issue...$%^&* idiots!
What is the bet we don’t lose it? Obummers people are everywhere. Whats to stop them from manipulating this to not happen.
Really??!!! You mean creditors don’t accept borrowing more money in order to pay them, as a sign of credit worthiness????
What is the world coming to when you can’t borrow yourself out of a debt problem?
Experts hell, I’m a high school drop out and I’ve been saying it all along.
Frankly I good give a rats ass about a Triple A rating,becuuse anything that is suppose to be self supporting,does’nt need credit.!!
Period.
Maybe this is just the king size version of "owe the bank $20,000 and the bank controls you; owe the bank $20 million and you control the bank" truism.
Perhaps the trick to maintaining AAA is to escalate the indebtedness and spending. "have to spend money to make money" and all that. The ratings agencies aren't the smartest kids on the block.
If enough investors think this is bogus, they won’t buy our stuff. The markets will dictate reality if the ratings agencies don’t make the right call...
Tonight was considered a conservative victory.
Spending cuts are NOT going to happen.
Again we are going to hand trillions over to 0bama so he can Drano it.
One has to hand it to Washington politicians in one respect, they are consistent.
Yep. Our credit is threatened because of too much debt.
But watch when the rating gets cut.
They will blame the TEA Party and Republicans. lol. You know they will.
I’m doubting they will downgrade, only because the rest of the World is in worst shape...hard as that is to believe.
Egan-Jones announced yesterday that it had downgraded the U.S. debt rating, from AAA to AA+.
The obvious solution is to raise the rating on others, and leave the US’ rating alone. :’) Thanks tobyhill.
Its pretty much in the tank... We are going to lose our triple A rating. The foreign banks have been taken care of by the fed for months now. The boom is ready to be lowered on us...
if we lose AAA, that will keep the pressure on Congress. i see that as a good thing.
I think foreign aid needs to be cut first.
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