Quantcast

U.S. Credit Rating Drops: Apocalypse Now or No Big Deal?

Spike 2011/08/08 18:00:00
You!
Add Photos & Videos
The way the media is portraying Standard & Poor's credit rating downgrade, you'd think this was the economic equivalent of Captain Willard's dark and dangerous descent into war-ridden Vietnam.

S&P; took a hammer to American morale by announcing it was downgrading the country's credit rating from AAA to AA+, which means the interest rates on our exorbitant debt ($14.4 trillion) could go up significantly, which is bad news for the government and the public.

The market dropped around 3 percent early on into the first day of AA+ trading, which is bad but not catastrophic. Forbes called it "wobbly."

In lieu of facing the problem head-on, it seems the White House, Senate and Congress will continue to trade blame and point fingers while the stock market suffers.

Big surprise.

But don't get too worried. Moody's, another big-name credit rating agency, kept the U.S. at its AAA rating, claiming the country really isn't much worse off than other AAA nations, debt aside, and still possesses a large and diverse economy.

If we learned anything in the '30s, it's not to let the stock market freak us out too much.

Watch 'Poll Position' on Spike.com each Friday to see results.
Add a comment above

Top Opinion

  • RTHTGakaRoland 2011/08/08 20:02:03
    Apocalypse now
    RTHTGakaRoland
    +28
    America's AAA credit rating survived two World Wars and the Great Depression unscathed, but could not survive Obama and his the Great "O"ppression.

    Late in 2008 as polls showed that he was likely to win markets priced in Obama. Wall Street, which is largely Democrat, bought his Keynesian lie and went, in part, back up. They have, now, learned that their first pricing in was accurate.

    We are now seated for the second act of Obama's Great Oppression.

    keynesian lie learned pricing accurate seated act obamas oppression obama market crash

Sort By
  • Most Raves
  • Least Raves
  • Oldest
  • Newest
Opinions

  • lisaokapi JCD aka... 2011/08/08 23:45:33
    lisaokapi
    Europe has conservative leaders? Well how do they come to the conclusion that its the Republicans fault?
  • Golden Ratio 2011/08/08 21:12:27
    No big deal
    Golden Ratio
    +1
    You don't think our government politicians knew the interest rates on our debt could go up significantly if they did not balance the budget in a hasty manner????
    They knew, they just did not give a god damn about your grandchildren paying off that higher interest rate.
    Most Americans don't even understand that whole interest rate thing anyway. They think "AA" is just as good a "AAA", lol
    Most Americans don't give a damn anyway. When our political leaders were acting like fools trying to solve the debt problem nobody really went out of their way to protest the foolishness of these grown men acting like children with Americas future.
    I didn't see anyone attacking the White House trying to get in there to beat the crap out of those so called leaders !!!!
    Nope, most Americans were out enjoying their new boat, car or camping gear, or that brand new giant screen TV, or trying to finance that new iPod they want, hell who's got time to care about what the government is doing, lol.
    We Americans have been trading our rights for "Stuff" for years now.

    Ya know when Americans make a stand, lol, when the Census workers come knocking at our doors, lol, that's when we really get everything off our small minds by giving it to people who aren't really government workers, but temp....




    You don't think our government politicians knew the interest rates on our debt could go up significantly if they did not balance the budget in a hasty manner????
    They knew, they just did not give a god damn about your grandchildren paying off that higher interest rate.
    Most Americans don't even understand that whole interest rate thing anyway. They think "AA" is just as good a "AAA", lol
    Most Americans don't give a damn anyway. When our political leaders were acting like fools trying to solve the debt problem nobody really went out of their way to protest the foolishness of these grown men acting like children with Americas future.
    I didn't see anyone attacking the White House trying to get in there to beat the crap out of those so called leaders !!!!
    Nope, most Americans were out enjoying their new boat, car or camping gear, or that brand new giant screen TV, or trying to finance that new iPod they want, hell who's got time to care about what the government is doing, lol.
    We Americans have been trading our rights for "Stuff" for years now.

    Ya know when Americans make a stand, lol, when the Census workers come knocking at our doors, lol, that's when we really get everything off our small minds by giving it to people who aren't really government workers, but temp. government workers with no benefits, lol, that's when we unload all our gripes about government, to people who are not really the government, lol.

    That's Americans mentality, they won't get the hell off the couch to make America better, they wait until government workers come to their homes to tell it like it is, and how pathetic is that.

    I don't expect to see any real big changes in Americas politics as they are today, because no one is gonna do anything in this next election, like they say they are, lol.
    I expect Obama to continue to destroy America as usual, and telling Americans all during that time everything is OK, lol, and Americans will believe him, like they do today.
    (more)
  • lisaokapi Golden ... 2011/08/08 23:53:12
    lisaokapi
    +1
    We need a president with balls and great leadership skills. He needs to have men beside him who have great ideas on how to turn this country around. Start with limiting gov not growing it. Get rid of current tax system. Privatize SS. I mean the list goes on. We dont need a tax cheat as head of treasury. We dont need cowards we need leaders!!! Good post!
  • Golden ... lisaokapi 2011/08/09 22:49:46
    Golden Ratio
    +1
    Right you are.
    But to bad the person that will win will have the most money and not the most brains or logic. There are allot of people who could turn America around, but they are not super wealthy, so they won't be given a chance to participate in our system that only allows the super rich to run as candidates.
  • Howling Hank 2011/08/08 21:11:05
    Apocalypse now
    Howling Hank
    +2
    U.S. Credit Rating Drops: Apocalypse Now or No Big Deal? Yes, this could have a domino effect across all economies....
  • Rick 2011/08/08 21:11:00
    No big deal
    Rick
    In the longer view, while painful at the moment, such a downgrade should be seen as tough love. Our economic policies have been oriented toward immediate gratification only -- a trademark of the boomer generation ("Eat, drink & be merry, for tomorrow we die -- but not before enslaving future generations with oppressive debt --"). We are in for a very unpleasant fiscal hangover, but it's not cataclysmic. Maybe now we can start becoming a responsible group of citizens and voters. We have to stop abdicating our rights and responsibilities -- and demand the same of our elected representatives ...
  • ken2ak 2011/08/08 21:07:22 (edited)
    No big deal
    ken2ak
    +1
    Everyone should read the S&P; report. The blame game is not even close to what is in the report. The Dems are trying to spin this report but here is the overview:The downgrade reflects our opinion that the fiscal consolidation plan
    that Congress and the Administration recently agreed to falls short of
    what, in our view, would be necessary to stabilize the government's
    medium-term debt dynamics.

    The outlook on the long-term rating is negative. We could lower the
    long-term rating to 'AA' within the next two years if we see that less
    reduction in spending than agreed to, higher interest rates, or new
    fiscal pressures during the period result in a higher general government
    debt trajectory than we currently assume in our base case.

    We lowered our long-term rating on the U.S. because we believe that the
    prolonged controversy over raising the statutory debt ceiling and the related
    fiscal policy debate indicate that further near-term progress containing the
    growth in public spending, especially on entitlements. . .

    The act further provides that if Congress does not enact the committee's
    recommendations, cuts of $1.2 trillion will be implemented over the same time
    period. The reductions would mainly affect outlays for civilian discretionary
    spending, defense, and Medi...







    Everyone should read the S&P; report. The blame game is not even close to what is in the report. The Dems are trying to spin this report but here is the overview:The downgrade reflects our opinion that the fiscal consolidation plan
    that Congress and the Administration recently agreed to falls short of
    what, in our view, would be necessary to stabilize the government's
    medium-term debt dynamics.

    The outlook on the long-term rating is negative. We could lower the
    long-term rating to 'AA' within the next two years if we see that less
    reduction in spending than agreed to, higher interest rates, or new
    fiscal pressures during the period result in a higher general government
    debt trajectory than we currently assume in our base case.

    We lowered our long-term rating on the U.S. because we believe that the
    prolonged controversy over raising the statutory debt ceiling and the related
    fiscal policy debate indicate that further near-term progress containing the
    growth in public spending, especially on entitlements. . .

    The act further provides that if Congress does not enact the committee's
    recommendations, cuts of $1.2 trillion will be implemented over the same time
    period. The reductions would mainly affect outlays for civilian discretionary
    spending, defense, and Medicare.

    general government debt
    would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and
    85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high
    in relation to those of peer credits and, as noted, would continue to rise
    under the act's revised policy settings.

    In short, the act didn't do anything except raise the debt. . .They should have cut spending and made a plan for future taxes, if debt didn't become controlled. . .Obama is right, but still part of the problem. . .This report shows the Tea party is on the right track.
    (more)
  • lisaokapi ken2ak 2011/08/08 21:38:10
    lisaokapi
    +2
    "THIS REPORT BY THE S&P SHOWS THE TEA PARTY IS ON THE RIGHT TRACT" THANK YOU!
  • ken2ak lisaokapi 2011/08/08 22:02:10
    ken2ak
    tract- track. . .typo. . .
  • lisaokapi ken2ak 2011/08/08 23:53:34
    lisaokapi
    ooops
  • YouSirName lisaokapi 2011/08/08 22:40:58
    YouSirName
    +1
    "right tract" -nice freudian slip.
  • gizamondo 2011/08/08 21:04:54
    No big deal
    gizamondo
    +1
    It's no big deal if the GOP will grow some balls and do what they were elected to do. On the other hand the Democrats need to do what is right for the nation. Not for the socialists.
  • JCD aka... gizamondo 2011/08/08 21:16:14
    JCD aka "biz"
    +1
    Were they elected to destroy the economy? If so, they are on their way to success.
  • gizamondo JCD aka... 2011/08/08 21:56:49
    gizamondo
    They were elected to correct what Socialist Dem's and their Republican buddies have done to the U.S.
  • Max 2011/08/08 21:04:53
    Apocalypse now
    Max
    +2
    Considering I've seen our fearless leader, O , called: "Barakalypse" and "Debt Man Walking", yes, I think it's a big deal. Especially since our fearless leader said it wasn't.
  • E Pluribus Unum 2011/08/08 21:01:51
    No big deal
    E Pluribus Unum
    +1
    But it is a clearly worded repudiation of the lack of compromise among extremists on left and right and recklessness of GOP/TEA party fringe in particular.
  • MO.gal 2011/08/08 20:53:11
    Apocalypse now
    MO.gal
    +3
    Are you satisfied now, Tea Party?
    satisfied tea party tea party downgrade
  • MadAsHEck MO.gal 2011/08/08 21:02:06
    MadAsHEck
    +6
    And who really blamed the Tea Party? Not S&P. They blame Congress and the Administration which is actually 2/3 of the government if you take away the Republican Controlled House. And the Tea Party Cacus is now a small minority in the house.

    As usual you Obamalovers have to place the blame on somebody other than the 2/3 of the government you control.

    In its report Friday, S&P ruled that the U.S. fell short: “The downgrade reflects our opinion that the … plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.”

    S&P also cited dysfunctional policymaking in Washington as a factor in the downgrade. “The effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges.”

    "dysfunctional policymaking " by a democratic controlled government. Not the Tea Party.

    "Congress and the Administration" 2/3 of which democrats control - Not the Tea Party

    If you Obma Cultists ever wake up, we might actually be able to save this country.
  • JCD aka... MadAsHEck 2011/08/08 21:14:47
    JCD aka "biz"
    +1
    You conveniently omited the part of their press release which lays the blame on the Republicans. Read WankerBait's comment, a few posts below:
    "S&P changed (their) assumption on this BECAUSE THE MAJORITY OF REPUBLICANS IN CONGRESS CONTINUE TO RESIST ANY MEASURE THAT WOULD RAISE REVENUES".
  • MadAsHEck JCD aka... 2011/08/08 21:49:14
    MadAsHEck
    +1
    I read the press release and did not find that any where in it. Amd l;isted exactly waht the press release said above.

    Give me a link to that statement.

    And it was Harry Reid that said he would not even let the House Budget that would have been better get a vote. Partly because it Defunded Planned Paretnthood, and a couple other of his pet projects.
  • Lanikai MadAsHEck 2011/08/08 22:14:00
    Lanikai
    One paragraph in 4 pages, all of the rest was aimed at the DEMS and these azzclowns latch onto that one paragraph like toddlers on a bottle.

    Reid and obie pablum.
  • lisaokapi MadAsHEck 2011/08/08 21:39:40
    lisaokapi
    THANK YOU!!! NICE TRY MO gal!
  • JCD aka... MO.gal 2011/08/08 21:15:16
    JCD aka "biz"
    Good question!
  • ken2ak MO.gal 2011/08/08 21:22:08
    ken2ak
    Read the report at S&P. . .and this isn't the end of the world. Obama puts a spin on the report, but the Dems could not agree on the ACT without the help of 58 congress tea partiers. . .
  • Apache ken2ak 2011/08/08 21:36:41 (edited)
    Apache
    +1
    Hussein wouldn't know how to run an economy if it fell on him..........Wait...........It did fall on him. I guess that's what happens when you combine socialist ideology with inexperience.
  • Lanikai MO.gal 2011/08/08 22:12:58
    Lanikai
    Since the S and P report clearly shows no rating drop would have happened if Cut, cap and balance had of been successfully passed, you MIGHT want to blame Reid for refusing to even allow discussion on the floor of the senate about it.

    DEMS effing America over and lying about th edebt decrease and STILL their stupid sheeple listen.
  • Igor 2011/08/08 20:49:23
    No big deal
    Igor
    It is certainly not as Apocalypse now but what about the future?
  • lisaokapi 2011/08/08 20:46:11
    Apocalypse now
    lisaokapi
    +1
    Its Obamacalypse. Its Obamageddan.
  • dave b lisaokapi 2011/08/08 20:47:25
    dave b
    +6
    DOW just closed below 11,000. Thanks Progressives!
  • JCD aka... dave b 2011/08/08 21:07:33
    JCD aka "biz"
    Thanks Republicans!
  • Liberty... JCD aka... 2011/08/08 21:19:23
    LibertyBella ☮ Ron Paul 2012 ☮
    +5
    LOL it didnt happen on their watch and the majority of them did not vote for that crap - 0bama and his hard line leftists did
  • JCD aka... Liberty... 2011/08/08 21:23:47
    JCD aka "biz"
    "Hard line leftists"? LOL
    Bruce Bartlett, one of Reagan's former top aides, said a few days ago that "Obama is a moderate conservative". And he is 100% right.
  • lisaokapi JCD aka... 2011/08/08 21:33:53
    lisaokapi
    +3
    that is laughable. Really? He must be old and senile. I see NOTHING conservitive about Obama.
  • JCD aka... lisaokapi 2011/08/08 21:39:58
    JCD aka "biz"
    You haven't seen the video here on SH, he is NOT.
    But many Republicans, Paul Ryan is one, are YOUNG AND SENILE.
  • Liberty... JCD aka... 2011/08/08 21:38:40 (edited)
    LibertyBella ☮ Ron Paul 2012 ☮
    +1
    Bruce Bartlett is a supporter of failed Keynesian economics. The only thing 0bama wants to "conserve" is the money in the banker's pockets, 0bama is a leftist, maybe you could call Bush a moderate conservative b/c he pushed social conservatism but he was a big spending, big government corporatist too.
  • Apache lisaokapi 2011/08/08 21:39:10
    Apache
    +2
    It's Debt Man Talking".

    debt talking crying obama
  • lisaokapi Apache 2011/08/08 21:40:35
    lisaokapi
    +1
    He looks like a fish. Too funny!!!!! Thanks for the laugh when I feel like crying.
  • Radical 1s1am1st 2011/08/08 20:45:30 (edited)
    No big deal
    Radical 1s1am1st
    S&P;'s Lead Analyst clearing his mind before assigning a credit rating.
    sp lead analyst clearing mind assigning credit rating flaming fart
  • Apache Radical... 2011/08/08 21:48:53
    Apache
    +1
    Hey look. I just found your old flash patch......................

    hey flash patch
  • Radical... Apache 2011/08/08 22:54:57

News & Politics

2013/05/19 00:16:51

Hot Questions on SodaHead
More Hot Questions

More Community More Originals