Whoa. I wonder how the markets, fragile little things that they are atm, will take this news at the open on Monday. This is a pretty big deal, imo. And it really provides the politicians a smack in the face, that all the bickering and bullshit they went through for the debt ceiling, means dick without tackling the real issue of entitlement reform, among other things like tax code reform/simplification, defense spending cuts, and the like.

Snippet from a Marketwatch bulletin:

"Standard & Poor's Friday night downgraded the U.S. debt rating to AA+ from AAA and, while removing the world's largest economy from CreditWatch, said the outlook was negative. "The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," S&P said. "More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011."

What say you OT?

maybe obama can get a nobel prize for that too

Looks like yesterday's selloff was a case of "insider" info

What is our ranking compared to other countries? I honestly know nothing about this.

http://blogs.forbes.com/kenrapoza/20...tical-parties/

 

Originally Posted by AbnormalQ

More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

Hard to argue with this.

Good for people holding tons of debt in USD tho, amirite?

 

Originally Posted by Z-Fresh

What is our ranking compared to other countries? I honestly know nothing about this.

Interesting tweet from Nate Silver a little bit ago that sort of relates to this

fivethirtyeight Nate Silver
Credit default swap prices suggest investors think France has ~3x the default risk of United States. But S&P rates them AAA.

With 'political ineptitude' being cited by several of the rating companies, I think this is the time for Ron Paul/anarchy/neo-nationalism to take hold. ABor C people.

Wow. Seems wild that they have the balls to downgrade US debt but never even flinched at CMO/subprime mortgage time bomb that was brewing for years.

lol @ this rant from the comments on a yahoo article about the news:

"@#$% ! S&P @#$%. These rating idiots are paid by the speculators to spook the markets so that the speculators can make money out of USA's demise. When the jobs data came out betteer than expected, the speculators must have a backup plan. So they conspired with S&P to panic the markets. The truth is the ship is not sinking, its just some rogue elements who are trying to make everybody panic and rock the whole boat to sink - wants to make everybody start running in the boat.

We see America invading Iraq and Afganistan, supporting NATO bombing campaign on Libya, but i tell ya, the true insurgents and terrorists is Wall Street. S&P are one of their agents, another croony of the speculators (banks, hedge funds and sovereign funds). I knew it, i knew it, they just want to make the market worst than what it is.

Dear Americans, if you know anybody working at S&P, beat them up nice nice. Break their nose. If their children study at the same school as yours, send your kids to beat up their kids and strip them naked back home. Dear Americans start throwing eggs, manure and faeces at the S&P office. Start protesting outside S&P office and if you see any employees resembling an S&P staff, drag them out and beat them up, females - cut their hair until they are bald. True criminals hte S&P, because they want to make a massive buy out at the Stock exchange. Bet that they are conspiring with the speculators"

They wanted congress to raise taxes or else they would downgrade. Sounds like blackmail to me.

You sure its a done deal? I just keep seeing its coming but s&p made a $2 trillion math error in the calculations. So it might not come still. Fuck washington. Fuck the s&p and moodys.

In other news, i made a killing today. As you were.

 

Originally Posted by Randers

With 'political ineptitude' being cited by several of the rating companies, I think this is the time for Ron Paul/anarchy/neo-nationalism to take hold. ABor C people.

no doubt our fellow muppets will choose fascism.

 

Originally Posted by NUTZREALHUGE

maybe obama can get a nobel prize for that too

is that thing made of gold he can melt down into coins?

 

Originally Posted by norcaljeff

these are the same ratings agencies that were so wrong about the subprime derivatives right? and the same ones the gov still mandates that companies use? lolsigh

No, these are the same ratings agencies that were extorted by the large investment banks into misrating subprime derivatives.