U.S. expecting debt downgrade

  • Posted by a hidden member.
    Log in to view his profile

    Aug 05, 2011 11:24 PM GMT
    (Reuters) - The U.S. government expects its debt to be downgraded by credit ratings agency Standard & Poor's from its current triple-A rating and is preparing for the event, ABC News said on Friday.

    ABC cited an unnamed government official as its source and said it was uncertain whether the rating would drop from triple-A to AA+ or to AA.

    The report said the main reasons likely to be cited for a U.S. downgrade by S&P included political confusion surrounding the process of hiking the debt limit and doubt that agreement would be reached on more deficit reductions.

    Standard & Poor's warned last month that the United States was at risk of a downgrade if it did not raise the debt ceiling and cut the country's debt by $4 trillion over a decade.

  • Posted by a hidden member.
    Log in to view his profile

    Aug 05, 2011 11:34 PM GMT
    They also cited "Republicans" as one of the reasons.
  • Posted by a hidden member.
    Log in to view his profile

    Aug 06, 2011 12:04 AM GMT
    My guess is the markets will "scare" like they do at almost any sort of negative news but the US is still the safest bet in the globe. Downgrade will just mean safest investment (i.e. US) is considered "very strong" instead of "extremely strong". Don't get me started on how we came to this point. Thanks congress! BTW, I'd love to talk to the 14% of people who approve of congress.
  • rnch

    Posts: 11556

    Aug 06, 2011 12:05 AM GMT
    DoomsDayAlpaca saidThey also cited "Republicans" as one of the reasons.

  • HndsmKansan

    Posts: 16412

    Aug 06, 2011 1:17 AM GMT
    I'm damn glad this was announced after the markets closed.... or another 500 point drop would have been the outcome no doubt......

  • Webster666

    Posts: 9225

    Aug 06, 2011 1:41 AM GMT
    Yeh, expect the markets to take a dive on Monday.

    Well, as fucked up as our government is, this had to happen, sooner or later. After Bill Clinton left office, we saw nothing but a wild borrowing and spending binge. Taxes were lowered again and again and again. Bush started TWO wars (all on credit) that Obama hasn't ended. Corporations have been allowed to move most of our factories over seas. So there you are. A perfect formula for financial disaster.

    And, now that we're rated AA+, don't expect it to take long for our rating to fall to AA.