CNBC Tweet: @CNBCbrk U.S. Government Bracing For S&P Downgrade As Early As Today

[villager]

Well. All that caving in for naught? (Once again?)

Anyone have any other details?

[Name removed]

1. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Ruby the Liberal]

3. "Keynes Failed"?

He did?

This should be fun. :popcorn:

[Name removed]

12. Deleted message

Message removed by moderator. Click here to review the message board rules.

[DCBob]

2. Why S&P Won’t Downgrade The U.S. After Friday’s Close

An opening rally driven by a modestly improved jobs report fizzled Friday, amid a rumor in the market that Standard & Poor’s will downgrade the U.S. credit rating after the closing bell. Despite the concern, that isn’t going to happen.

“Moody’s has already ruled they won’t downgrade the U.S. and S&P is not going to leave themselves hanging out there alone,” says Richard Lehmann, publisher of the Forbes/Lehmann Income Securities Investor newsletter. “It’s too competitive a marketplace.”

The ratings agency would catch hell for going out on a limb on its own and though Lehmann had not heard the downgrade rumor, he said “it sounds like something put out there by someone who wants the market to go down even further.”

more: http://blogs.forbes.com/steveschaefer/2011/08/05/why-sp-wont-downgrade-the-u-s-after-fridays-close/

[murphyj87]

4. Comparison between the US and Canada

The United States:

Vastly expensive insurance run health care.
Weak unions
Weak banking regulations.
Weak corporate regulation
A very low $7.25 minimum wage.

Giving the US a 9.1% unemployment rate for July.

Canada:

Universal single payer health care (35% of the cost of American insurance run health care)
Very strong unions
Strong banking regulations
Strong corporate regulation
Minimum wage of $10.00 an hour

Giving Canada a 7.2% unemployment rate for July.

[RKP5637]

6. +1, n/t

[murphyj87]

14. Canada also has a AAA credit rating /nt

[Poll_Blind]

5. Good lord, back and forth with the rumors absolutely stating yes and no. Back and forth.

PB

[villager]

7. That's it -- the rumors keep flying, but it seems either could happen

The fact that downgrade is still "on the table" casts an even newer, harsher light on the whole fake "debt crisis" debacle

[Poll_Blind]

10. It sure does. It sure does. We get all the cuts and all the punishment. n/t

PB

[DCBob]

8. here's more...

A government official tells ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value.

Officials reasons given will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited.

The official was unsure if the bond rating would be AA+ or AA.

http://blogs.abcnews.com/politicalpunch/2011/08/govt-official-us-expecting-sp-downgrade.html

sounds like it could happen... not good but maybe not a disaster since Moodys and Fitch remained at AAA.

[villager]

9. so it appears S&P is prepping to do this, after all?

n/t

[Ruby the Liberal]

13. Several outlets are now reporting it, BUT

for all we know, they are using each other as the source.

It would be nice to hear from S&P one way or the other.

[Name removed]

11. Deleted message

Message removed by moderator. Click here to review the message board rules.