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Full statement at link. Worth reading IMO.
1 posted on 08/05/2011 9:28:56 PM PDT by freespirited
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To: freespirited

AA+ Ping


2 posted on 08/05/2011 9:29:44 PM PDT by mlocher (Is it time to cash in before I am taxed out?)
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To: freespirited
"Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating
to the Select Committee decisions on more comprehensive measures."

Standard & Poor's

3 posted on 08/05/2011 9:31:14 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: freespirited

Read the full pdf. It’s a disaster. On one hand, they say they aren’t taking a position on spending cuts versus tax increases. On the other hand, they mention new revenues three times in a favorable light.

Expect the dems and the liberal media to glom on to that and make political hay of it.


4 posted on 08/05/2011 9:31:35 PM PDT by bolobaby
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To: freespirited
"Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty,..."

Standard & Poor's

6 posted on 08/05/2011 9:32:58 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: freespirited
"Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow."

Standard & Poor's

7 posted on 08/05/2011 9:33:45 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: freespirited
"Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. "

Standard & Poor's

9 posted on 08/05/2011 9:34:34 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: freespirited
"As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward. Standard & Poor's
10 posted on 08/05/2011 9:35:05 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: freespirited

SLAP!


11 posted on 08/05/2011 9:37:51 PM PDT by clintonh8r (Happy to be represented by Lt. Col. Allen West (this tagline under review))
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To: freespirited

Very interesting. The owner of S&P is McGraw Hill.

Note this:

Pre-Marketing: S&P for sale?

http://www.businessbrokerjournal.com/blog/pre-marketing-sp-for-sale

“Big breakup? Activists put pressure on S&P owner McGraw Hill “

Here is more about McGraw Hill:

http://www.mcgraw-hill.com/


12 posted on 08/05/2011 9:37:51 PM PDT by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one)
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To: freespirited

14 posted on 08/05/2011 9:41:33 PM PDT by clearcarbon
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To: freespirited

“Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.”


15 posted on 08/05/2011 9:41:49 PM PDT by worst-case scenario (Striving to reach the light)
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To: freespirited

IMF considers US debt as $203T, not $14T...look up Kotlikoff’s figures.

Weiss Ratings beat S&P to the punch:

http://ml-implode.com/viewnews/2011-07-15_WeissRatingsDowngradesUnitedStatesDebttoCMinus.html

Weiss Ratings Downgrades United States Debt to C-Minus

2011-07-15 — weissratings.com

Weiss Ratings, an independent rating agency of U.S. financial institutions and sovereign debts, has downgraded the debt of the United States government from C to C-minus.

The C-minus rating for the U.S. reflects a continued deterioration in the weaknesses cited in the Weiss Ratings release of April 28, 2011, including heavy debt burdens, shaky international stability, and poor economic health.

Weiss Ratings senior financial analyst Gavin Magor commented: “Our downgrade today is not contingent on the outcome of the debt ceiling debate in Washington. It is driven exclusively by the numbers, which indicate that, in addition to a decline in the long-standing weaknesses we noted three months ago, the U.S. has already lost the golden halo that helped guarantee liquidity and acceptance of its government securities in global markets.”

On the Weiss Ratings scale, which ranges from A (excellent) to E (very weak), a C-minus rating is the approximate equivalent of a triple-B-minus on the scales used by other credit rating agencies, or approximately one notch above speculative grade (junk).

About Weiss: By adhering to its independent business model, Weiss outperformed Standard and Poor’s, Moody’s, A.M. Best and Duff & Phelps (now Fitch) in warning of future life and health insurance company failures according to a 1994 study by the U.S. Government Accountability Office (GAO), while also outperforming its competitors in identifying the safest insurers, according to its follow-up study using the GAO’s research methodology.

http://weissratings.com/Login.aspx?a=r

U.S. Sovereign Debt Rating Close to “Junk”

by Weiss Ratings | July 14, 2011

“Weiss Ratings is very close to downgrading the sovereign debt rating of the United States one more notch to a ‘C –’, which will put it just one notch above junk,” Martin Weiss, President of Weiss Ratings told CNBC on Wednesday.

“In April, Weiss Ratings gave the U.S. sovereign debt rating a ‘C’. A ‘C’ is equivalent to approximately a triple-B on the S&P, Moody’s and Fitch scales. Its two notches above junk, Weiss told CNBC in May. Weiss added that while the rating was weak, the debt situation was not in a danger zone that should trigger panic.

In yesterday’s interview with CNBC, Weiss responded to Moody’s Rating Agency placing their U.S. triple-A rating on review for a downgrade in the coming weeks on mounting concern that legislators will fail to raise the debt limit in time to avert potentially drastic effects.

The U.S. government is deadlocked in negotiations to raise the $14.3 trillion debt ceiling by August 2 before a potential default. President Obama announced on Tuesday, that failure to increase the debt ceiling would jeopardize payments to Social Security and Veteran’s benefit recipients.

Weiss believes a downgrade by the large rating agencies is long overdue, noting that the top-notch standard assigned to the U.S. is unfair to investors and savers as they are not being compensated for the level of risk they are taking.

“The U.S. has a huge debt load compared to most other countries,” he said. “And, has a very unstable economy over the last 10 years compared to most other countries.” The U.S. ratio of debt-to-gross domestic product is currently over 90 percent.

“The only thing that’s really holding up the U.S. debt rating is a widespread international acceptance for U.S. Treasury securities and nice strong liquid market. But even that might be coming into question,” according to Weiss.

Weiss is hopeful that a last minute deal will fend off a potential crisis for U.S. and world markets. He pointed out that three years ago the legislature’s failure to pass a bailout package sent markets into a tailspin, and forced Congress to sign off on it.

He said, “We might see a similar scenario here in the debt ceiling debate, a failure at first and then a desperate deal in the thirteenth hour to rescue the situation at the last minute.”

Based on the government’s continued failure to agree on terms for raising the U.S. debt ceiling and the looming deadline, Weiss Ratings is reviewing its current ‘C’, rating signaling consumers that a ‘C-’ rating might be a fairer assessment under the circumstances.


17 posted on 08/05/2011 9:51:13 PM PDT by givemELL (Does Taiwan eet the Criteria to Qualify as an "Overseas Territory of the United States"? by Richar)
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To: freespirited
HEADLINE!

Moody’s, S&P Caved In to Ratings Pressure From Goldman, UBS Over Mortgages

S&P can be bought off. Somebody wanted a higher return from Treasury bonds. Some Obama friends? The Chi-Coms? Who?

18 posted on 08/05/2011 10:02:26 PM PDT by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: freespirited
The fools in Washington of both parties F***** around with raising the debt ceiling proving they were not only idiots but they are insane.

The market capitalization is off $1.4 trillion since this lunacy started. If the markets react to this news on Monday with a 1000-1500 point drop then $4.0 trillion of market cap..peoples 401k’s, pensions, market accounts will have disappeared. That's sure a way to get the country on the road to fiscal responsibility.

Anyone voting for any of these fools in the next election deserves what they get..

19 posted on 08/05/2011 10:06:45 PM PDT by montanajoe
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To: freespirited
"Remember, during the debt ceiling fight, S&P warned that there was a 50/50 chance of a downgrade if spending weren't cut by at least $4 trillion dollars."

BusinessInsider

20 posted on 08/05/2011 10:11:05 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: All
The House, under Boehner, passed a plan with bipartisan support that would have averted this downgrade, with $4T in cuts, and on put us on the right path: "Cut, Cap & Balance" (HR 2560).

What did Obama & the obstructionist Senate say?

Harry Reid: "Over, Done, Dead"

White House: "Duck, Dodge and Dismantle."

23 posted on 08/06/2011 12:02:36 AM PDT by newzjunkey (Get behind ONE "Balanced Budget Amendment" (BBA))
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To: aflaak

Ping


28 posted on 08/06/2011 9:31:10 AM PDT by r-q-tek86 ("It doesn't matter how smart you are if you don't stop and think" - Dr. Sowell)
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To: freespirited

So Standard and Poor’s is now in the business of legislating the USA? I think not.


32 posted on 08/13/2011 1:02:14 AM PDT by antceecee (Bless us Father.. have mercy on us and protect us from evil.)
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