Slaying the lowered bond rating myth!

[LWW]

The fart left is bleating in collectivist unison about how a default would lower the gubmint's bond rating ... of course this is a natural result of the regime telling them that a default would lower the gubmint's bond rating.

The reality is that what is threatening to lower the bond ratings is a solution which doesn't get a grip on the deficit problems.

Now, as evidence, I present some real world results:

After years of a moonbat crazy governor and legislature ... 2009: (http://www.dispatch.com/live/content/local_news/stories/2009/06/15/moodys_ohio.html)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">COLUMBUS -- A second major ratings agency has downgraded Ohio's bond rating, citing the state's manufacturing woes and tax changes.

Moody's Investors Service downgraded Ohio's bond rating today from "Aa1" to "Aa2," or from the second-highest rating to the third-highest.

Last week, Fitch downgraded the state's bond rating to "AA" from "AA+," also a drop from the second-highest rating to the third-highest.

The downgrades could make it more expensive for Ohio to borrow money, although Gov. Ted Strickland's budget director says historically low interest rates should enable the state to continue borrowing cheaply.

Moody's, like Fitch, says Ohio's heavy reliance on the deteriorating manufacturing industry was a key factor in the rating. Moody's also cited tax changes that have lowered state revenue. </div></div>


Weeks after a more conservative governor and legislature decides to look after the best interests of the state's future ... 2011: (http://nation.foxnews.com/ohio/2011/07/18/sp-upgrades-ohios-rating-after-kasich-reform)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">By Drew FitzGerald, Dow Jones Newswires

Standard & Poor's Ratings Services on Friday raised its outlook on Ohio to stable, citing the state's progress in stabilizing its budget.

S&P rates Ohio at AA+, the second-highest possible rating. The stable outlook reflects the state's renewed progress in restoring its budget amid a modest economic recovery.

Read more: http://online.wsj.com/article/BT-CO-20110715-714220.html#ixzz1SdKyaXrP </div></div>

[LWW]

Meanwhile voters in Illinois also had the choice of continuing under moonbat crazy leftist gubmint, or turning towards sanity.

They didn't choose wisely: (http://www.pionline.com/article/20110110/PRINTSUB/301109981)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">A move being considered by the state of Illinois to sell up to $4.1 billion in pension obligation bonds at best could help maintain one of the worst state credit ratings in the nation and at worst lead to further downgrades for the cash-strapped state, according to ratings agencies.

The revenue generated from the proposed sale would go to three statewide pension plans. About $2.358 billion would go to the $33.2 billion Teachers' Retirement System of the State of Illinois, Springfield; $960 million to the Illinois State Board of Investment, Chicago; and $777 million to the $12.9 billion Illinois State Universities Retirement System, Champaign.

Illinois already has about $13 billion in pension obligation bonds still outstanding from $10 billion sold in 2003 and $3.4 billion in January.

Illinois is on credit watch from ratings agency Standard & Poor's, New York, with a rating of A+; it has been on watch since 2008 because of budget shortfalls and legal challenges against then-Gov. Rod Blagojevich, Robin Prunty, a director in S&P's public finance ratings group, said in a telephone interview. S&P put Illinois on credit watch with negative implications on March 23.



Read more: http://www.pionline.com/article/20110110/PRINTSUB/301109981#ixzz1SdMvSqa1 </div></div>

[LWW]

Not even a lame denial of reality?

[Sev]

Interesting that Moody's has stated that unless at there are at least 4 tillion in real cuts the US credit rating is going to be lowered.

Back to Rand Pauls 6 trillion dollar cut plan. /forums/images/%%GRAEMLIN_URL%%/smile.gif

[Soflasnapper]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: LWW</div><div class="ubbcode-body">Not even a lame denial of reality? </div></div>

There are only 4-5 states with a AAA rating, NM, <u>Maryland</u>, a few others.

Those few are in danger of losing that rating if the US loses its rating, and/or doesn't lose it, but defaults. That's the claim, and what you mention is not germane.

[LWW]

What a nit you truly are.

The point is that a sane budget plan leads to higher credit ratings.

Following a stupidonomic budget plan leads to lowered credit ratings.

[Soflasnapper]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: LWW</div><div class="ubbcode-body">What a nit you truly are.

The point is that a sane budget plan leads to higher credit ratings.

Following a stupidonomic budget plan leads to lowered credit ratings. </div></div>

I agree that the more sober minded states have earned their AAA ratings, the highest they give out.

It would be shame if for no fault of their own, continuing their fine record of fiscal probity that has earned them this rating, that the default of the US would cause some of them to lose that rating. Cities as well.

Just a shame.

[Qtec]

Sept 1987 (http://www.youtube.com/watch?v=e6nNJiJsm70&feature=player_embedded)

Q

[LWW]

You are capable of learning ... maybe.

What that shows is that both sides play the same game, merely flipping sides depending on who is in the White House ... but always tring to kick the can down the road a bit further.

[Qtec]

So your hero, Ronnie Reagan was LYING!!!!!!!!!!

Good to know next time you use him as an example.

Q

[LWW]

Reagan was a statist ... just simply the least rabid statist since Ike.

Again, a nice fedora would hide your point.