S&P will downgrade USA anyway even if there is a deal?

Discussion in 'Wall St. News' started by Grandluxe, Jul 26, 2011.

  1. Even if they reach a compromise and we avoid a default, prospects are growing that we will get hit by a second bullet: a downgrading of our AAA credit rating.

    Standard and Poor's, which rates securities such as U.S. bonds, has made increasingly clear that it is looking for more than a resolution of the debt-ceiling fight. It also wants the resolution to be built on a credible plan to reduce deficits by $3 trillion to 4 trillion over 10 years.

    Well-informed people now think that a credit downgrade is a near certainty. And that could bring some of the same damage as a default: higher interest rates, troubles in banks and state governments and a blow to American prestige.

    Americans are rightly angry, frustrated and more than a little scared by this debt fight. It has only confirmed that our politics have taken a terrible turn. And how striking it is to have an emergency that has not been caused by our foes -- but is entirely a self-inflicted wound.


  2. wiki:
    Standard & Poor's (S&P) is a United States-based financial services company....

    i think, after much posturing, they will go ahead and downgrade Greece or Ireland instead

  3. Yes, I think so too... if they downgrade the US, the employees at S&P know that their effective taxes & prices they pay will probably rise due to the lower credit rating. Would they really want that?
  4. The USA does not warrant a AAA rating, more like A.

    Just for fun, here are my ratings:

    Canada AA

    USA A

    Japan A

    Mexico B

    Venezuela CCC

    Ireland CC

    Greece D

  5. Somebody remind me - did they downgrade the US for any of the seven debt ceiling raises brought in by the previous Bush administration?
  6. obama has already put us further into debt than bush did in his entire 8 year span- and his aspirations will double the entire debt yet again in the near future. get your head out of your ass, our debt problem is 90% obama's and 10% prior presidents all added together.
  7. Hmmm...maybe they downgraded during one of the 18 debt ceiling increases brought in by Reagan?
  8. piezoe


    You are right Shortie. There is very little chance U.S. debt will be downgraded unless of course there is an actual default, which there won't be.

    Perhaps twenty years from now, When the U.S. can no longer sell its bonds except at extortionist interest rates, but not now.
  9. piezoe


    I hesitate to respond to nonsense, as it usually only leads to even more ridiculous claims, but do you have any actual figures to back up your wild assertions? (Also, please be aware that Obama has greatly disappointed me.)
  10. antaram


    check the first post here

    #10     Jul 26, 2011