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Franco
08-06-2011, 06:15 AM
Well, one had to know it was coming when our politicians failed to put a realistic plan together to address our ever-growing debt.

We were warned by our politicians that it would be doom and gloom if our credit rating was downgraded and that we had to raise the debt ceiling (so as to pay for all thier wasteful spending).

Credit was downgraded, the debt hasn't been truthfully addressed and I expect more of the same smoke/mirrors and double talk coming out of DC.


Bring me Ron Paul!

Gerry Clinchy
08-06-2011, 06:51 AM
Right on, Franco.

The Congresscritters once again displayed their ignorance of the facts of life.

K G
08-06-2011, 09:24 AM
The Congress and the President were warned by Standard & Poors (S&P) that they needed at least a $4 trillion cut to avoid a downgrade. They approved a $2.1 trillion cut. In essence, they thumbed their noses at S&P. As a result, the potential for ALL of us to have to pay more to borrow money just went up exponentially.

It is time for a sea-change in our country. And the time is now.

k g

BonMallari
08-06-2011, 11:17 AM
there is one thing that the BHO administration inherited from the Bush administration...





a AAA credit rating

Buzz
08-06-2011, 11:40 AM
S & P defending their rating of Lehman:

http://www.cfo.com/article.cfm/12295579?f=related



Rating Itself: S&P Defends Lehman's "A"

Detailed self-review lets it off the hook for giving the bank high marks during its slide toward bankruptcy. Why? Investor fear did it in.

September 24, 2008


Standard & Poor's is taking great pains to defend its "A" rating for Lehman Holdings Inc.

The rating company fired off a report Wednesday asserting that the recent collapse of the investment banking firm was a case of negative market sentiment — whether or not grounded in fundamentals — creating significant difficulties that led the company to the point of failure.

"In our view, Lehman had a strong franchise across its core investment banking, trading, and investment management business," S&P stated. "It had adequate liquidity relative to reasonably severe and foreseeable temporary stresses."

The ratings service insisted that looking beyond the current downturn, the firm had good earnings-generating ability. "We believe the downfall of Lehman reflected escalating fears that led to a loss of confidence — ultimately becoming a real threat to Lehman's viability in a way that fundamental credit analysis could not have anticipated with greater levels of certainty," said S&P credit analyst Scott Sprinzen.

Buzz
08-06-2011, 11:56 AM
Boehner got 98% of what he wanted from the debt deal. It must have been the 2% that resulted in the downgrade...

See the video:

http://www.cbsnews.com/stories/2011/08/01/eveningnews/main20086598.shtml

road kill
08-06-2011, 12:03 PM
Buzz, who are you arguing with?

OK, it's all somebody else's fault (Bush, Tea Party, Boehner) when will our leader lead and start fixing this mess???

Because it is getting worse by the day.........

RK

Mike W.
08-06-2011, 12:28 PM
The Democrats and Liberals will be blaming George Bush for years to come, they just can't help it.

Barack Obama inherited the recession....ok, we get it....everybody knows it.

But the recovery, or lack thereof, is all Obama's. They can try and shift they blame all they want, but they own this one.

This credit downgrade, combined with the persistently high unemployment rate will be Hussein's undoing.

He is a one term President, and you can go ahead and write it in the book.

Goose
08-06-2011, 12:35 PM
Where's Paul Krugman when you need him. I thought keynesian economics was our salvation? What happened? Didn't we spend enough? I thought debt=growth:)

The ChiComs and Russians and everybody else who owns our stinking AA+ debt still expect to be paid. No doubt the Ber-Nank is warming up the presses in his basement in preparation for another round of keynesian money printing to save the day. It's the only thing he knows how to do. Isn't that amazing! Money printing is the only thing central bankers know how to do.

And I just read where the Germans told the Italians to stick it. Monday should be fun!

This will ultimately end in a huge world war. That's the keynesian end game. Global wars always work at making things right again. Good for global GDP and helps keep the population under control. I just hope that we form a brigade of keynesians and send their sorry asses to the front.

Keep your pantry stocked.

We live in Cuba now.

caryalsobrook
08-06-2011, 12:39 PM
Boehner got 98% of what he wanted from the debt deal. It must have been the 2% that resulted in the downgrade...

See the video:

http://www.cbsnews.com/stories/2011/08/01/eveningnews/main20086598.shtml

Buzz, I love you to death:) But Gosh you like spin sometimes even Republican spin. What the Debt deal is lower the GROWTH of gov. expenditures for the next 10 years to 7% with an economy that is growing at about 1%, and that is asuming that the plan is actually implemented. All that aside, I have argued with you that interest rates would go up. In fact I'm not sure the downgrade will even make a difference.

Personally, I believe the Blanced Budget Amentment is a non-starter and the only real plan has been presented by Congressman Connie Mack. Take 2011 expenditures and reduce them in REAL TERMS(actually we haven't had a budget for the last 2 1/2 years and the only one presented by POTUS was rejected by the senate 97-0, and those passed by the house have never been voted on by the senate) by 1% a year for the next 7 years. This would lower gov. expenditures from about 25% of GDP to 18% of GDP which has been the historical norm. I believe such a plan would have stopped the downgrade and the possible of capital flowing out of this country but it would not have stopped interest rates from rising. Lest you forget-THE NUMBERS DON'T LIE. i try to keep reminding you of that and you seem to keeep forgetting it.

Franco
08-06-2011, 07:08 PM
Ten days ago, the Dems and the Treasury Secretary were telling us that a Credit Downgrade would be armagedden.

How much does anyone bet that business will be as usual next week in DC? The Dems won't address any crucial opportunites for cuts and the Repubs will continue to fight against the government taking more of the people's money.

Poor spending restraints over the last 10 years enabled by the Federal Reserve is the culprit!

K G
08-06-2011, 07:20 PM
Asian indexes were down Friday but that was expected. Dow futures are mixed; DJIA is up, NASDAQ is down.

All the spin on the Sunday news shows will be worth watching. Monday morning at 9:30am est should be interesting...

k g

Uncle Bill
08-07-2011, 01:15 PM
Asian indexes were down Friday but that was expected. Dow futures are mixed; DJIA is up, NASDAQ is down.

All the spin on the Sunday news shows will be worth watching. Monday morning at 9:30am est should be interesting...

k g


It might even start Sunday eve with the futures and overseas stuff, Ken. I'm unsure if last week was the 'factoring in' week, or there is more to come starting tomorrow. Whatever, I doubt the "markets" are in for any surprises...I think they saw it coming.

I just wish ONE of these talking heads would explain to the sheeple that the "cuts" Washington is so proud of, are once again REDUCTIONS IN SPENDING GROWTH. I get so dayumed tired of talking to someone that thinks we are reducing our dept, when all we are doing is slowing the growth of it.

UB

caryalsobrook
08-07-2011, 02:18 PM
It might even start Sunday eve with the futures and overseas stuff, Ken. I'm unsure if last week was the 'factoring in' week, or there is more to come starting tomorrow. Whatever, I doubt the "markets" are in for any surprises...I think they saw it coming.

I just wish ONE of these talking heads would explain to the sheeple that the "cuts" Washington is so proud of, are once again REDUCTIONS IN SPENDING GROWTH. I get so dayumed tired of talking to someone that thinks we are reducing our dept, when all we are doing is slowing the growth of it.

UB
Yep and they are slowing the growth of Gov. to 7% per year!!!! Well bully for them.

Uncle Bill
08-07-2011, 04:46 PM
More of the same.

S&P Warns Of Second Downgrade To National Credit Rating If Spending Cuts Aren’t Made

Rob Port (http://sayanythingblog.com/entry/author/admin/) • August 6, 2011


Can we admit now that the liberal talking point about needing to raise the debt cap in order to bring certainty to our markets and indicate that we wouldn’t be defaulting on the national debt has been utterly destroyed?

Our “full faith and credit” wasn’t going to be destroyed by not raising the debt ceiling. It’s being destroyed by run-away deficit spending (http://www.politico.com/news/stories/0811/60803.html#ixzz1UHHZD8Oc).
One day after lowering the nation’s platinum triple-A credit rating, Standard & Poor’s analysts warned Saturday that the U.S. government could face a second downgrade if the economy continues to struggle and the government fails to make the cuts outlined in the debt ceiling agreement.


The ratings agency on Friday downgraded the nation to AA+ for the first time in history, saying partisanship in Washington is preventing dramatic deficit reduction.


S&P managing director John Chambers told reporters on a Saturday conference call that the toxic mix of a listless economy and political infighting will cause government debt to grow.


“Compared to some other highly rated governments, the U.S. government does not have the proactive ability to put public finances on a firm footing,” Chambers said.
In other words, we’re still not serious about getting spending in line.
The only solution is cuts.

Buzz
08-10-2011, 05:44 PM
If S&P wanted to embarrass themselves, they could not have come up with a better time to downgrade US Treasuries. :rolleyes:


http://delong.typepad.com/.a/6a00e551f080038834015434684f46970c-pi

Buzz
08-11-2011, 10:15 AM
Treasury Real Interest rates now negative out to 10 years.

http://delong.typepad.com/.a/6a00e551f0800388340153909729ec970b-pi

steve hoppas
08-11-2011, 10:43 AM
The real problem is that we are giving people an incentive not to work, they should take away food stamps and welfare from people that are not working at all and only give it to people willing to work full time yet they are still poor. Not he lazy people sitting on their rear with both hands in the pot. Plus how can we justify sending Billions overseas in aid? Thats like giving the bum on the corner $100 while they are repossessing your house. It's not smart for you to do it, and it's smart for the Government to do it either.