Reaction to USA's new credit rating

Discussion in 'Economics' started by John_Doe, Aug 7, 2011.

  1. John_Doe


    I was thinking that after PR at S&P saw how congress handled the budget deal it was time to downgrade U.S's credit rating before people feel that they're a joke.

    The mortgage crisis showed how S&P is a joke. Their business model motivated them to rubber stamp AAA ratings on packages they don't understand because the more AAA financial instruments they can push out the more money they made. Regulators didn't do a thing because they wanted jobs at S&P to make more money. But people are still shocked at the downgrade in U.S's credit rating because it goes against the herd's feeling that the economy isn't headed towards Armageddon. Their feelings are that these big institutions are looking after things, keeping things from collapsing and this downgrade in credit rating put a big dent in their emotions. So there is a mismatch between the herd's thought and emotions as there is past history to show how S&P isn't accurate in their ratings and nothing to prove they've changed but these institutions are the only things the herd can believe in to feel a sense of security. S&P's actions is to keep things like that because one day if the economy continues to get worse mainstream media will target these ratings agency to prevent alternative media gaining market share with the idea that these agencies wouldn't predict these things because that is their business model and will use the mortgage crisis to back it up. Then the herd's emotions will match their thoughts and S&P doesn't want that because the herd mentality is that emotions triumph over reason, but fortunately not all the way as looking at how people reacted to this news there is an internal struggle between feeling shocked that the U.S.'s credit rating could be downgraded and the feeling of surprise that S&P finally can't look the other way any longer.
  2. the1


    Exactly. The government should turn around and downgrade S&P to idiot status.
  3. 377OHMS


    Typical libtard response, Suppress Free Speech.

    How dare they rate the credit worthiness of the US government! Flog them! Sue them! Attack them!


    Either reduce government spending or we will all pay a price. Can't bring yourselves to cut entitlements or even test for means? Fine, good luck financing a new car or refinancing your home.

    The S&P rating is public opinion and therefore constitutionally protected Free Speech under the 1st amendment.

    Next the libtards will be attacking the constitution, oh wait!, they already are.

    We're heading for civil war, world war, civil unrest or all of the above. Keep it up libtards.