US government loses triple-A credit rating

[babsbunny]

http://www.msnbc.msn.com/id/44040574/ns/business-stocks_and_economy/

S&P cut the long-term U.S. credit rating by one notch to AA-plus. The credit agency said late Friday that it was making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country's debt situation.

U.S. Treasuries, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the United Kingdom, Germany, France or Canada.

The outlook on the new U.S. credit rating is negative, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months.

U.S. government officials had been bracing for a downgrade.

[grantcart]

1. The big news is that they are citing Republican refusal to consider revenue

increases to reduce deficits as the compelling logic for down grading.

Its hard to argue with that logic.

[banned from Kos]

5. Could not find such in the linked article

would you provide your source?


thanks.

[Ruby the Liberal]

8. Erm, its all over the web.

How could you miss it?

http://www.businessinsider.com/sp-does-not-believe-the-bush-tax-cuts-will-get-lifted-in-2012-2011-8

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.

Read more: http://www.businessinsider.com/sp-does-not-believe-the-bush-tax-cuts-will-get-lifted-in-2012-2011-8#ixzz1UD5LnJ37

[CJCRANE]

6. CNN mentioned they wanted bigger spending cuts,

didn't mention revenue (but that may just be their usual bias).

[FarLeftFist]

2. Hmmm, maybe shoulda tossed some ACTUAL revenue into the debt bill.

Seems like a good first step to letting people know you're serious about paying the money back.

[Better Believe It]

3. They gave the junk mortgage securities a triple AAA rating!

They clearly have a right-wing anti-worker economic agenda that aims to cut social programs that benefit working people, the elderly and the poor.

Their rating has nothing to do with the actual worth and stability of U.S. treasury securities.

[defendandprotect]

4. Uncle Sam is now a GOP "dead beat" -- ???

[Stuart G]

7. Would this have happened if the PUKES just raised it like they did for Bush?

Just perfunctory, like they had done in the past?..
I don't think so. Neither will most people