S&P Affirms US AAA Rating, Cuts Outlook to Negative

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    Apr 18, 2011 2:52 PM GMT
    http://www.cnbc.com/id/42643384

    Standard & Poor's on Monday downgraded the outlook for the United States to negative, saying it believes there's a risk U.S. policymakers may not reach agreement on how to address the country's long-term fiscal pressures.

    "Because the U.S. has, relative to its 'AAA' peers, what we consider to be very large budget deficits and rising government indebtedness and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable," the agency said in a statement.

    In an interview with CNBC, David Beers, S&P's global head of sovereign ratings, said the agency has been "struck increasingly by the difference in how other governments are dealing with fiscal consolidation."

    "The U.S. to us looks to be an increasing outlier in that context," Beers added.


    Yes, that's because the US isn't actually well, um dealing with the problem.
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    Apr 18, 2011 2:55 PM GMT
    Given how fraudulent S&P and Moody's have proven to be, I can't imagine why anyone believes any of their ratings.
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    Apr 18, 2011 2:59 PM GMT
    Christian73 saidGiven how fraudulent S&P and Moody's have proven to be, I can't imagine why anyone believes any of their ratings.


    Except that they presumably have gotten better - though this is on their sovereign debt side not their corporate debt analytics side. It's difficult not to see that they have a point however.
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    Apr 18, 2011 3:14 PM GMT
    riddler78 said
    Christian73 saidGiven how fraudulent S&P and Moody's have proven to be, I can't imagine why anyone believes any of their ratings.


    Except that they presumably have gotten better - though this is on their sovereign debt side not their corporate debt analytics side. It's difficult not to see that they have a point however.


    I do think they have a point, but it's not any better than telling me the sky is blue.
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    Apr 18, 2011 4:28 PM GMT
    Christian73 said
    riddler78 said
    Christian73 saidGiven how fraudulent S&P and Moody's have proven to be, I can't imagine why anyone believes any of their ratings.


    Except that they presumably have gotten better - though this is on their sovereign debt side not their corporate debt analytics side. It's difficult not to see that they have a point however.


    I do think they have a point, but it's not any better than telling me the sky is blue.


    It underscores the urgency of dealing with the problems rather than avoiding them. Given how much spending there is over historical levels, there is a spending issue. I would also note that I agree with you that Defence spending cannot be excluded - given that the Pentagon itself has had reports that have suggested that the US overspends on its military.