USA Credit Rating downgraded to AA+

[karstenp]

Just read the following article in the morning paper...(btw: I live in Ontario, Canada).

"The United States lost its top-notch AAA credit rating from Standard & Poor’s on Friday in an unprecedented reversal of fortune for the world’s largest economy.

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government’s budget deficits and rising debt burden. The move is likely to raise borrowing costs eventually for the American government, companies and consumers. The outlook on the new U.S. credit rating is “negative”, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months." (Note: Moody's has maintained the AAA rating for now and Fitch is currently reviewing its rating.)

Yikes! I know that there was a lot of discussion on the US debt over the past month and some threats of a downgrade, but I never thought I would see this in my lifetime. Obviously not great news....

 

[dbvolfan]

I Must refrain from saying what I really feel here but long story short we ALL played a role in this downgrade and debt crisis. There are a bunch of idiots running the show but we in attendance need to start making some very hard decisions in the near future around spending, taxes and entitlements. I wont delve into those because it will create a mess on here but we're at an inflection point that hasnt been seen in generations perhaps.

 

[BIODSL]

Yikes! I know that there was a lot of discussion on the US debt over the past month and some threats of a downgrade, but I never thought I would see this in my lifetime. Obviously not great news....

It's not like we didn't know it was coming. We were warned in April this was a possibility. Krauthammer's got a pretty good column here on how to stop the bleeding. I believe he's missing one significant point: dealing with the fact that around 47% of citizens pay zero federal income tax. Part of real tax reform has to include these "disenfranchised" voters. We're not really all in this together if half of us aren't contributing. Everyone should pay a little something.

Of course, tax reform is just the beginning. The real disagreement to settle is over the role and scope of government.

 

[08FJR4ME]

Well lets try and keep this contained if at all possible. Lots I could say but won't. How can you live in a country where only

51 1/2 % have jobs and are actually working. I would say the worst is yet to come. Time to turn off the faucet.

Dave

 

[dcarver]

I hope this serves as a wake-up notice for our country and people.

..wonder how long this thread lives? (keep it clean boyz n' gurlz else...)

 

[exskibum]

I Must refrain from saying what I really feel here but long story short we ALL played a role in this downgrade and debt crisis. There are a bunch of idiots running the show but we in attendance need to start making some very hard decisions in the near future around spending, taxes and entitlements. I wont delve into those because it will create a mess on here but we're at an inflection point that hasnt been seen in generations perhaps.

+100 -- on both the general content and the extremely diplomatic manner in which you managed to avoid making it partisan political. (I don't believe that it is either partisan or debatable that "there are a bunch of idiots running the show.")

:clapping: :clapping:

 

[James Burleigh]

So much for Treasuries as setting the market's "riskless rate."