US's triple-A credit rating 'under threat'

Discussion in 'Wall St. News' started by Cdntrader, Jan 11, 2008.

  1. US's triple-A credit rating 'under threat'
    By Francesco Guerrera, Aline van Duyn and Daniel Pimlott,in New York

    Published: January 11 2008 02:00 | Last updated: January 11 2008 02:00

    The US is at risk of losing its top-notch triple-A credit rating within a decade unless it takes radical action to curb soaring healthcare and social security spending, Moody's, the credit rating agency, said yesterday.

    The warning over the future of the triple-A rating - granted to US government debt since it was first assessed in 1917 - reflects growing concerns over the country's ability to retain its financial and economic supremacy.
  2. We still have a triple-A rating?
  3. So.... CDO's and ABS were AAA and now the USA may no longer be AAA.

    In other words, these ratings mean nothing. You're on your own.
  4. toc


    AAA rating was by promise only, that US government will never default on its will still not but would want more time and money to eventually honor the original debt. :D

  5. Yea the social security and health care are two of the main reasons why we owe 7 trillion dollars? Western Europe have a much better health care system and their social security benefits are superior to ours yet you do not see them being crushed. Last time I checked, Euro was doing OK compared to the good old greenback.

    Wait,I know the solution, let's elect Georgie for another term (sorry can't be done). How about another republiscum?
  6. the nominal tax rate in most euro countries with all those great benefits is like 70%
  7. All of western europe has a higher DEBT/GDP ratio, higher annual fiscal deficits in 2006 and higher future entitlement costs such as healthcare and pensions than the usa.
  8. Moody's has such a great track record with debt rating ... those CDO models worked so well.

    US debt to gdp ratios are awesome compared to most of the countries referred to here with stronger currencies as of late (France, Germany, Japan, etc).

    Its kind of amazing yields on the ten and 30 yr are so low considering the additional outstanding supply caused by the floating of all that extra debt to pay for the gulf war. Perhaps thats a function of M3 supply going up to offset this.

    Regardless, debt ratings won't be threatened -- if anything worsens, it'll be the dollar.

    But I wouldn't bet on it (the $$) worsening much. The regime of Bush is nearly over, and perhaps a good economic slowdown (and no more gulf military action) will force the US to reign in excesses and get its budgets better balanced.

    And medicare/social security? thats easy (despite resistance from the aged), cut benefits and raise retirement age. Those bush medicare additional benefits didn't help us.. And of course 3T of the 8T of our debt is to ourselves..
  9. trderdragon-- That was my initial response too.

    It might be the Crown Royal SR talking tho..

  10. yep
    #10     Jan 11, 2008