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View Full Version : S&P To Down Grade US Credit to Aa!!!



Sev
08-05-2011, 03:12 PM
Just heard on the news that the administration is bracing itself for an impending down grade by S&P!!

So much for the debt deal keeping us out of trouble.
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http://www.businessinsider.com/sp-aaa-rating-us-2011-8

There was crazy chatter about this earlier, and now CNBC is reporting that the government is preparing for a possible downgrade from S&P.

Remember, during the debt ceiling fight, S&P warned that there was a 50/50 chance of a downgrade if spending weren't cut by at least $4 trillion dollars.

Bear in mind that both Fitch and Moody's have both come out affirming the US AAA.

Ben White at POLITICO has also said that an announcement could come out today...

The popular thinking on this is that its impact on markets would be less significant than the political impact to Obama.

That being said, never before has the world's safest sovereign been downgraded, so who knows what would happen. There could certainly be issues among funds that are compelled to hold AAA assets.

We'll be on this.

Update: ABC is reporting the same news, that a downgrade is expected And it sounds pretty certain.

Officials reasons given will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited.

Read more: http://www.businessinsider.com/sp-aa...#ixzz1UBtmHksw</span>

Soflasnapper
08-05-2011, 05:11 PM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Officials reasons given will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited.
</div></div>

And that's a fact we can all agree on!