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  1. #1
    My kind of town
    chitown's Avatar
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    May 2007
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    S&P Slammed After U.S. Downgrade

    Days after Standard & Poor's downgraded the United States' credit rating, a powerful backlash has set in against the move. Washington leaders of both parties, as well as investors, have seemed to shrug off the ratings agency's verdict--and some analysts have even raised questions about S&P's basic competence and credibility. On Friday, S&P lowered its rating for long-term debt issued by the U.S. Treasury by one notch, from Triple A--its highest rating--to AA+. Explaining the move, it said Washington hadn't done enough to reduce the long-term deficit, and expressed doubt about the ability of political leaders to work together to solve the problem.
    After the recent crisis over raising the debt ceiling, those concerns--especially the latter--appear valid. But by lowering the U.S. rating, S&P is saying that it now sees an increased chance that the Treasury won't repay its debts in the future--even though Congress did ultimately vote to raise the ceiling, avoiding a default.
    And that's where many observers differ with S&P. Take a look at the financial markets: It's true that, so far this week, Wall Street and foreign markets have nosedived. But that descent began last week, before the downgrade. More important, far from running away from U.S. Treasury bonds, investors are flocking to them, suggesting that they see the chances of a default as slimmer than ever.
    "The downgrade of U.S. sovereign credit by S&P on Friday reflects facts that have been well known to the market for some time," said Blackrock, the world's largest asset management firm, in a statement Monday. "So, it does not imply a fundamental increase in risk, and we don't believe that investors should change their behavior based solely on the downgrade."
    President Obama appears to agree. "No matter what some agency may say, we've always been and always will be a AAA country," he declared Monday.

    Full story - S&P Slammed After U.S. Downgrade | Daily Ticker - Yahoo! Finance

  2. #2
    I don't know barbaro's Avatar
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    Dec 2005
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    on pacific ocean, south america
    S & P slammed because they fucking finally told the truth.

    The response by many Americans reveals their arrogance and ignorance.

    The downgrade possiblity has been bantered about for the last couple of years.

    The US is fucking the rest of the world, as the USD is the reserve currency. Fuck them.

  3. #3
    Thailand Expat
    OhOh's Avatar
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    Yesterday @ 10:06 AM
    Where troubles melt like lemon drops
    Quote Originally Posted by chitown
    President Obama appears to agree.
    Well if he agrees then there can be no question, S&P must be right.

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