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+--- Thread: US loses its AAA credit rating - Standard and Poor (CNN) (/showthread.php?tid=45425)
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US loses its AAA credit rating - Standard and Poor (CNN) - WillDaSnail - 2011-08-05
http://money.cnn.com/2011/08/05/news/economy/downgrade_rumors/index.htm?iref=BN1&hpt=hp_t1
CNN Wrote:NEW YORK (CNNMoney) -- Credit rating agency Standard & Poor's on Friday downgraded the credit rating of the United States, stripping the world's largest economy of its prized AAA status.Thanks a lot partisanship-happy Washington.
In July, S&P placed the United States' rating on "CreditWatch with negative implications" as the debt ceiling debate devolved into partisan bickering.
To avoid a downgrade, S&P said the United States needed to not only raise the debt ceiling, but also develop a "credible" plan to tackle the nation's long-term debt.
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."
Rating agencies -- S&P, Moody's and Fitch -- analyze risk and give debt a "grade" that reflects the borrower's ability to pay the underlying loans.
The safest bets are stamped AAA. That's where U.S. debt has stood for years. Moody's first assigned the United States a AAA rating in 1917.
In the days after lawmakers managed to strike a debt-ceiling deal, the two other major rating agencies have both said the deficit reduction actions taken by Congress were a step in the right direction.
On Tuesday, Moody's said the United States will keep its sterling AAA credit rating, but lowered its outlook on U.S. debt to "negative."
Even after a downgrade, the United States will likely still be able to pay its bills for years to come and remains a good credit risk.
A downgrade really just amounst to one agency's opinion. Federal Reserve Chairman Ben Bernanke articulated that view in April when S&P placed the United States on credit watch. "S&P's action didn't really tell us anything," Bernanke said. "Everybody who reads the newspaper knows that the United States has a very serious long-term fiscal problem."
Investors have limited options for making safe investments, and Treasuries are effectively as liquid as cash. And other big countries have been downgraded and were still able to borrow at low rates.
At the same time, some experts warn that a downgrade could gum up the banking system and ripple out onto Main Street. Treasuries are used as collateral in many transactions between financial institutions and grease the skids of lending.
Consumers and investors could feel the impact of a downgrade. Interest rates on bonds could rise, and rates on mortgages and other types of loans along with them.
Government-backed agencies like Fannie Mae and Freddie Mac may also be downgraded. It's also possible that some state and local governments could also face a downgrade.
And investment decisions would become complicated for large institutional investors that are required to hold highly-rated securities. To top of page
US loses its AAA credit rating - Standard and Poor (CNN) - Rick - 2011-08-05
Damn. Sucks for US people wanting to buy houses and such. I guess it works in my favour if I travel there next year, though. But still sadface for innocents.
US loses its AAA credit rating - Standard and Poor (CNN) - Mike - 2011-08-05
Big thanks to the U.S. government!
US loses its AAA credit rating - Standard and Poor (CNN) - Fiel - 2011-08-05
As an American, I kinda figured this would happen.
Most Americans felt that this was a manufactured crisis. Dems and Reps stick to their guns until the last second, broker a deal that the general public doesn't like, and then claim victory for their party's side. It's totally dysfunctional. The last I checked, according to Gallup, Congressional approval rating stood at an abysmal 25%. Yes, that's how much the public hates Congress. Politicians pander to the middle for votes during a voting cycle but quickly go back to hardcore dem/rep once in office. There's no room for moderates in Washington anymore, and there hasn't been for at least the past 30 years.
US loses its AAA credit rating - Standard and Poor (CNN) - Devil - 2011-08-06
High Five Republicans!
Thank god billionaires still have their low taxes now! Because, lol, who cares about all lazy non-billionaires suckers and your own country's future?
US loses its AAA credit rating - Standard and Poor (CNN) - xLeviathan - 2011-08-06
![[Image: 2011-08-05T160652Z_01_BTRE77418RK00_RTROPTP_2_OBAMA.JPG]](http://l.yimg.com/bt/api/res/1.2/iyCnLqKl8sVpjDREOwiHtg--/YXBwaWQ9eW5ld3M7Zmk9aW5zZXQ7aD0zMjA7cT04NTt3PTQ1MA--/http://media.zenfs.com/en_us/News/Reuters/2011-08-05T160652Z_01_BTRE77418RK00_RTROPTP_2_OBAMA.JPG)
S&P PDF released about the issue: http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldata&blobtable=MungoBlobs&blobheadervalue2=inline%3B+filename%3DUS_Downgraded_AA%2B.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1243942957443&blobheadervalue3=UTF-8
Quote:The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and
Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.
Now people believe what I'm talkin' about when I give my reasons for moving to Korea. At least they'll hold off their capitalistic fate until I die (hopefully).
US loses its AAA credit rating - Standard and Poor (CNN) - KhainiWest - 2011-08-06
It's not as bad as it sounds, at least right now. The other two credit agencies still have us at AAA, so, as long as congress comes up with some plan, however unlikely based on the recent circumstances, we can bounce back on this.
US loses its AAA credit rating - Standard and Poor (CNN) - Corn - 2011-08-06
Our stocks are going to plummet again
.
US loses its AAA credit rating - Standard and Poor (CNN) - Devil - 2011-08-06
KhainiWest Wrote:It's not as bad as it sounds, at least right now. The other two credit agencies still have us at AAA, so, as long as congress comes up with some plan, however unlikely based on the recent circumstances, we can bounce back on this.True, AA+ isn't that bad...
http://en.wikipedia.org/wiki/List_of_countries_by_credit_rating
Sorted on rating + alfabetical name
| Country | Rating | Outlook | Date |
| Australia | AAA | Stable | Jul 2011 |
| Austria | AAA | Stable | Jul 2011 |
| Canada | AAA | Stable | Jul 2011 |
| Denmark | AAA | Stable | Jul 2011 |
| Finland | AAA | Stable | Jul 2011 |
| France | AAA | Stable | Jul 2011 |
| Germany | AAA | Stable | Jul 2011 |
| Guernsey | AAA | Stable | Jul 2011 |
| Hong Kong | AAA | Stable | Jul 2011 |
| Isle of Man | AAA | Stable | Jul 2011 |
| Liechtenstein | AAA | Stable | Jul 2011 |
| Luxembourg | AAA | Stable | Jul 2011 |
| Netherlands | AAA | Stable | Jul 2011 |
| Norway | AAA | Stable | Jul 2011 |
| Singapore | AAA | Stable | Jul 2011 |
| Sweden | AAA | Stable | Jul 2011 |
| Switzerland | AAA | Stable | Jul 2011 |
| United Kingdom | AAA | Stable | Jul 2011 |
| ================== | ===== | ============ | ======= |
| Belgium | AA+ | Negative | Jul 2011 |
| New Zealand | AA+ | Stable | Jul 2011 |
| United States of America | AA+ | Negative | Aug 2011 |
| ================== | ===== | ============ | ======= |
| Abu Dhabi | AA | Stable | Jul 2011 |
| Bermuda | AA | Stable | Jul 2011 |
| Kuwait | AA | Stable | Jul 2011 |
| Qatar | AA | Stable | Jul 2011 |
| Slovenia | AA | Negative | Jul 2011 |
| Spain | AA | Negative | Jul 2011 |
| ================== | ===== | ============ | ======= |
| China | AA- | Stable | Jul 2011 |
| Japan | AA- | Negative | Jul 2011 |
| Saudi Arabia | AA- | Stable | Jul 2011 |
| Taiwan | AA- | Stable | Jul 2011 |
| ================== | ===== | ============ | ======= |
| Chile | A+ | Positive | Jul 2011 |
| Italy | A+ | Negative | Jul 2011 |
| Slovak Republic | A+ | Stable | Jul 2011 |
| ================== | ===== | ============ | ======= |
| Andorra | A | Negative | Jul 2011 |
| Czech Republic | A | Stable | Jul 2011 |
| Ras Al Khaimah | A | Stable | Jul 2011 |
| Estonia | A | Positive | Jul 2011 |
| Israel | A | Stable | Jul 2011 |
| South Korea | A | Stable | Jul 2011 |
| Malta | A | Stable | Jul 2011 |
| Oman | A | Watch Negative | Jul 2011 |
| Trinidad and Tobago | A | Stable | Jul 2011 |
| ================== | ===== | ============ | ======= |
| Aruba | A- | Negative | Jul 2011 |
| Botswana | A- | Stable | Jul 2011 |
| Malaysia | A- | Stable | Jul 2011 |
| Poland | A- | Stable | Jul 2011 |
Rest is BBB+ or below
US loses its AAA credit rating - Standard and Poor (CNN) - IllegallySane - 2011-08-06
As people said, AA+ isn't that much worse, thankfully. Once it falls below AA or AA-, then we should run around like chickens with our heads chopped off.
US loses its AAA credit rating - Standard and Poor (CNN) - xLeviathan - 2011-08-06
Thanks for the list Devil. Interesting, indeed.
US loses its AAA credit rating - Standard and Poor (CNN) - Sarah - 2011-08-06
Thanks for listing them alfabetically, Devil. It made finding Canada much easier. AAA, bitches.
US loses its AAA credit rating - Standard and Poor (CNN) - Fiel - 2011-08-07
![[Image: vpeYf.jpg]](http://i.imgur.com/vpeYf.jpg)
At any rate, did you know that CAD has been worth more than USD for quite some time? It's sad. 1 USD used to be worth like 1.10 CAD for so long it even got printed on millions of books.
US loses its AAA credit rating - Standard and Poor (CNN) - Stereo - 2011-08-07
Nice thing about the dollar tanking is that it helps the American economy grow, it's easier for you guys to export and to compete with imports.
Canadians get ripped off on stuff from America, cause we still pay the same price (in $CND) which is about 10% higher.
US loses its AAA credit rating - Standard and Poor (CNN) - Raul - 2011-08-07
Devil Wrote:True, AA+ isn't that bad...
http://en.wikipedia.org/wiki/List_of_countries_by_credit_rating
Sorted on rating + alfabetical name
Country Rating Outlook Date Australia AAA Stable Jul 2011 Austria AAA Stable Jul 2011 Canada AAA Stable Jul 2011 Denmark AAA Stable Jul 2011 Finland AAA Stable Jul 2011 France AAA Stable Jul 2011 Germany AAA Stable Jul 2011 Guernsey AAA Stable Jul 2011 Hong Kong AAA Stable Jul 2011 Isle of Man AAA Stable Jul 2011 Liechtenstein AAA Stable Jul 2011 Luxembourg AAA Stable Jul 2011 Netherlands AAA Stable Jul 2011 Norway AAA Stable Jul 2011 Singapore AAA Stable Jul 2011 Sweden AAA Stable Jul 2011 Switzerland AAA Stable Jul 2011 United Kingdom AAA Stable Jul 2011 ================== ===== ============ ======= Belgium AA+ Negative Jul 2011 New Zealand AA+ Stable Jul 2011 United States of America AA+ Negative Aug 2011 ================== ===== ============ ======= Abu Dhabi AA Stable Jul 2011 Bermuda AA Stable Jul 2011 Kuwait AA Stable Jul 2011 Qatar AA Stable Jul 2011 Slovenia AA Negative Jul 2011 Spain AA Negative Jul 2011 ================== ===== ============ ======= China AA- Stable Jul 2011 Japan AA- Negative Jul 2011 Saudi Arabia AA- Stable Jul 2011 Taiwan AA- Stable Jul 2011 ================== ===== ============ ======= Chile A+ Positive Jul 2011 Italy A+ Negative Jul 2011 Slovak Republic A+ Stable Jul 2011 ================== ===== ============ ======= Andorra A Negative Jul 2011 Czech Republic A Stable Jul 2011 Ras Al Khaimah A Stable Jul 2011 Estonia A Positive Jul 2011 Israel A Stable Jul 2011 South Korea A Stable Jul 2011 Malta A Stable Jul 2011 Oman A Watch Negative Jul 2011 Trinidad and Tobago A Stable Jul 2011 ================== ===== ============ ======= Aruba A- Negative Jul 2011 Botswana A- Stable Jul 2011 Malaysia A- Stable Jul 2011 Poland A- Stable Jul 2011
Rest is BBB+ or below
Remind me to invest in Estonia or Chile.
US loses its AAA credit rating - Standard and Poor (CNN) - Sarah - 2011-08-07
Fiel Wrote:
At any rate, did you know that CAD has been worth more than USD for quite some time? It's sad. 1 USD used to be worth like 1.10 CAD for so long it even got printed on millions of books.
Yes, I am quite aware. It has been annoying me a lot. Games are a lot more here for some reason, it doesn't make any sense.
US loses its AAA credit rating - Standard and Poor (CNN) - Fiel - 2011-08-07
Is that why you frequent pawn shops?
US loses its AAA credit rating - Standard and Poor (CNN) - Sarah - 2011-08-07
No, you can't find old games anywhere else. EB Games barely sells PS2 games now, let alone anything lesser and specialty shops price to eBay standards. Pawn shops just standard price all games regardless of intrinsic value.
I don't care about paying full price for new stuff but when our economy is doing better than the US's our products should cost less.
US loses its AAA credit rating - Standard and Poor (CNN) - Shidoshi - 2011-08-07
Lol Brazil is BBB- and is one of the world's emerging economies. As my work buddy said, I just wanna watch the world burn as the world changes drastically in these years to come.
US loses its AAA credit rating - Standard and Poor (CNN) - Xiger - 2011-08-07
Devil Wrote:True, AA+ isn't that bad...
http://en.wikipedia.org/wiki/List_of_countries_by_credit_rating
-snip-
I am surprised Malaysia is on that list.