I could not find a thread on this - any thoughts, discussion about whether S&P (and Fitch, Moody's) may join in and release a downgrade, possibly related to the fiscal cliff/Washington mess? My brain hurts when I try to think about which party wants to go over the cliff, and if they are correct for deciding so.
Imo, this doesn't concern Obama. Means nothing to him. I'd like to know Obama's fico score before he became a Senator. "The rating is in the hands of policymakers," said John Chambers, chairman of Standard & Poor's sovereign rating committee, the agency that downgraded the United States in August 2011. In interviews with Reuters since the Nov. 6 election, all three major rating agencies said cutting the U.S. debt rating - still among the world's strongest - is highly likely if next year's budget process replays 2011's debt ceiling debacle or if the seemingly simple goal of cutting deficits goes unmet. Ultimately, if Congress and the president can't reach a deal to stabilize and eventually reduce the debt, now at $16 trillion, Moody's will probably cut the United States' current Aaa rating. Fitch, meanwhile, said even a deal to avert the cliff might not be enough to save the country's AAA rating. cont on link... http://articles.economictimes.india...owngrade-sovereign-risk-group-debt-trajectory
this is just stupid brainwashing and spinning by the media Nobody's debt gets downgraded because they refuse to borrow more money. I didn't catch the congressman's name, but he is a democrat and has a very good bill which would require each time congress wants to spend more money that they would also have to raise the debt limit. Then we wouldn't have to go through this each time. The outrage on the left that the republicans would even think about not voting for the debt limit increase because, "that is what we have always done" would be funny if not so pathetic republicans are very bad with the media, it's like they never watch tv Obama himself when he was a senator was one of the few who voted against raising it, and he had a very convincing argument on the senate floor why was voting against it it's all just silliness, there really is no reason for a limit anyway
it's all just silliness, there really is no reason for a limit anyway ===================== You sound like Obama. You are now qualified to go on the Jay Leno show. When asked "What's the current debt?" You can answer "I don't know." and people will applaud, re-elect you for astute financial prowess.
It's actually an obsolete leftover, and you could (this came up the last time) argue that it violates the 14 Amendment's clause on the debt: By raising the question of whether or not the debt incurred previously will be paid, the debt limit violates this clause, or so it was argued last time around. The Democrats, last time they controlled the Congress, passed and got signed pay as you go rules in 2010. Why did the Republicans oppose this bill? Because it said any new law which increased the deficit had to be offset by either spending cuts or tax increases. They objected, of course, to the idea that the offset could be a tax increase. But if this is in place why is the deficit so big? Because it applied to new laws, not existing ones. This past Congress didn't do much in the way of new bills; the House of Reps, occupied by Tea Party extremists, spent most of its time grandstanding on abortion bills that were never going to see the light of day anyway. What little time they had leftover they spent grandstanding uselessly about Bernanke or how they would never ever ever raise a tax on anyone ever. In other words, proudly beating their chests over how they weren't going to do a thing, since their job actually does consist of debating and doing the deals that get new laws passed. But if you're not willing to do a deal, you have nothing to do as a politician. Except grandstand. And so here we are now, and those same Tea Party extremists are still grandstanding, since none of the new people elected in November take office until after this debt limit debate is over. As for the ratings agencies, they'll do as they please and no one will care, except it'll make a nice headline. The bond market will decide what happens, not them. As always.