Some Good Analysis of the S&P Downgrade

[manasia]

"If U.S. debt is in fact less creditwort­hy, then all the banks and financial companies that rely on its value should also be less creditwort­hy. Yet, we didn't hear of J.P. Morgan, Goldman Sachs and the rest being put on the watch list for a downgrade. Why not? Perhaps this is because S&P doesn't take its own rating seriously.­"

http://www.huffingtonpost.com/dean-baker/how-to-think-about-standa_b_920148.html

[cityimrov]

Those companies, while still strong users of the US Dollar, are global international companies.  I can think of a few Fortune 500 companies now that make more money in China than they do here in the US.  Even companies like GM and Haliburton really don't consider the US to be THE major player anymore for their future business.

I don't understand this article.  It doesn't make sense unless I start going into conspiracy theory world like that Glenn Beck show did a while back.

[manasia]

Those companies, while still strong users of the US Dollar, are global international companies.  I can think of a few Fortune 500 companies now that make more money in China than they do here in the US.  Even companies like GM and Haliburton really don't consider the US to be THE major player anymore for their future business.

I don't understand this article.  It doesn't make sense unless I start going into conspiracy theory world like that Glenn Beck show did a while back.

The primary idea behind the article, is that their is no economical reason why the US Credit rating should have gotten a downgrade.

[danem]

I kind of skimmed through their own statement earlier today, but didn't they say they would be making a separate determination regarding individual firms?

[cityimrov]

Those companies, while still strong users of the US Dollar, are global international companies.  I can think of a few Fortune 500 companies now that make more money in China than they do here in the US.  Even companies like GM and Haliburton really don't consider the US to be THE major player anymore for their future business.

I don't understand this article.  It doesn't make sense unless I start going into conspiracy theory world like that Glenn Beck show did a while back.

The primary idea behind the article, is that their is no economical reason why the US Credit rating should have gotten a downgrade.

The definition of AAA means that the credit of that organization is nearly perfect and the chances of you loosing your money there is nearly zil.  It can happen but it's extremely rare.  What happened the last 2 months puts doubt on AAA.  Can you really say that there is almost no chance that the US will not pay back it's debt as shown by the highest of highest standards of credit ratings to all it's debtors with what you saw the last two months? 

[buckethead]

QUICK!

Break every mirror!

Then we won't be so ugly.

[Jdog]

Those companies, while still strong users of the US Dollar, are global international companies.  I can think of a few Fortune 500 companies now that make more money in China than they do here in the US.  Even companies like GM and Haliburton really don't consider the US to be THE major player anymore for their future business.

I don't understand this article.  It doesn't make sense unless I start going into conspiracy theory world like that Glenn Beck show did a while back.

The primary idea behind the article, is that their is no economical reason why the US Credit rating should have gotten a downgrade.

The definition of AAA means that the credit of that organization is nearly perfect and the chances of you loosing your money there is nearly zil.  It can happen but it's extremely rare.  What happened the last 2 months puts doubt on AAA.  Can you really say that there is almost no chance that the US will not pay back it's debt as shown by the highest of highest standards of credit ratings to all it's debtors with what you saw the last two months?

exactly right, city imrov.

The politics are supposed to end at the borders, and instead we have a group of retards threatening not to pay our bills if the rest of us don't agree to their terms.

The rest of the world could  care less about our politics, they just want their money.

The hell of it is that there is plenty of money to pay those bills.

If we were using the same tax structure that Ronald Reagan had in place there wouldnt even be a deficit.

Morons.....!

Specifically excerpted:  The politics are supposed to end at the borders, and instead we have a group of retards threatening not to pay our bills if the rest of us don't agree to their terms.


+100

[BridgeTroll]

Those companies, while still strong users of the US Dollar, are global international companies.  I can think of a few Fortune 500 companies now that make more money in China than they do here in the US.  Even companies like GM and Haliburton really don't consider the US to be THE major player anymore for their future business.

I don't understand this article.  It doesn't make sense unless I start going into conspiracy theory world like that Glenn Beck show did a while back.

The primary idea behind the article, is that their is no economical reason why the US Credit rating should have gotten a downgrade.

The definition of AAA means that the credit of that organization is nearly perfect and the chances of you loosing your money there is nearly zil.  It can happen but it's extremely rare.  What happened the last 2 months puts doubt on AAA.  Can you really say that there is almost no chance that the US will not pay back it's debt as shown by the highest of highest standards of credit ratings to all it's debtors with what you saw the last two months?

exactly right, city imrov.

The politics are supposed to end at the borders, and instead we have a group of retards threatening not to pay our bills if the rest of us don't agree to their terms.

The rest of the world could  care less about our politics, they just want their money.

The hell of it is that there is plenty of money to pay those bills.

If we were using the same tax structure that Ronald Reagan had in place there wouldnt even be a deficit.

Morons.....!

Specifically excerpted:  The politics are supposed to end at the borders, and instead we have a group of retards threatening not to pay our bills if the rest of us don't agree to their terms.


+100

No doubt...

The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that “the buck stops here.” Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.

[JeffreyS]

This is all over played.  We set a deadline to have the debate finished and met it so the agency says you should have done it well before the deadline.  All the times we raised the debt ceiling with no conditions that is AAA rated.  You start adding any requirements, limitations or responsibilities onto further spend and you get downgraded.  Don't tell me well this has been coming for a while they changed the rating immediately after debt deal.  I guess all though our spending history unlimited was fine but do one little thing to start correcting the issue and you better solve it all in one swoop.  S&P has admitted the calculations they issued with the downgrade were off 2 trillion dollars but they don't change their minds no matter how misinformed they are. They never downgraded Lehman bros. from AAA it never happened they were AAA rated at the fire sale of their office fixtures. The corporations who use their services and whose holdings are based on the dollar won't be automatically downgraded hmmm.  I know as a lefty I should probably just be singing about how S&P pointed the finger at Tea Party Brinks-manship and Republicans irresponsibly not adding revenue to the equation but the truth is I am not sure S&P's credible enough for me use as a stone to throw.