Posted on 01/15/2013 12:42:34 PM PST by drewh
A major credit-rating firm warned it could downgrade the U.S. if lawmakers prioritize debt payments over other government obligations such as Social Security, or fail to tackle the nation's growing debt burden in the ongoing budget negotiations.
Fitch Ratings, one of the ratings firms that are closely watching the U.S. inch closer to its borrowing limit, unveiled two potential routes to a downgrade Tuesday, laying out their analysis more specifically than in prior reports.
Analysts predict the U.S. will hit its so-called debt ceiling between Feb. 15 and March 1.
Fitch's warning comes as President Barack Obama and Republican leaders in Congress jostle over a vote to raise the country's borrowing limit. And just as the credit-rating firms are closely observing the action in Washington, lawmakers there—and investors around the world—are keeping an eye on the analysts who hold the fate of the U.S.'s credit rating in their hands. A lower rating could raise the country's borrowing costs or at least signal to investors that its fiscal house isn't in top shape.
Fitch said Tuesday that it may downgrade the nation's debt even if lawmakers raise the debt ceiling, if Washington emerges from those negotiations without taking steps to lighten the U.S. debt load
(Excerpt) Read more at online.wsj.com ...
And with that news, bank stocks RISE? What in God’s name? The entire financial system is totally corrupt. Absolutely NO doubt after all of the recent events and news. If a Republican were president, the markets would crash on that news.
http://www.usatoday.com/story/money/business/2013/01/15/fitch-downgrade-us/1835385/
“fundamental credit strengths are being eroded by the large, albeit steadily declining, structural budget deficit and high and rising public debt.”
If by ‘albeit steadily declining’ they mean ‘maybe barely perceptibly declining’ that’s pretty accurate.
Hmmm...If the US Govt was a corporation wanting to issue bonds, I wonder what its credit rating would be? They would have to extend the ratings scale to include ‘ZZZ’.
economics bump for later....
So what?
Didnt interest rates go DOWN after the first downgrade?
Exactly. Rates fell to all time lows after the 2011 “debt ceiling crisis” that resulted in a downgrade. Fitch’s rating is pretty irrelevant.
According to S&P's definitions: an 'C' or [more likely] 'D'.
Finally a few more are joining the ranks some of us have been stating for yrs. This is the most corrupt democracy (republic) on the planet.
I downgraded the US debt long ago. That Fitch has not yet done so is either their incompetence, or a measure of the comparative horrible options for investing in the world market.
Holder will file suit against Fitch in 5...4...3...2...
Just like Moody’s
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