Downgrade watch begins as debt panel concedes defeat

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    Nov 23, 2011 1:12 AM GMT
    http://thehill.com/blogs/on-the-money/801-economy/194961-no-downgrade-from-supercommittee-failure-yet

    Credit rating agencies reiterated Monday that the U.S. is at risk of a downgrade following the announcement that the supercommittee has failed.

    Standard & Poor's warned lawmakers not to try and roll back the $1.2 trillion in automatic cuts set to begin in 2013. The rater said an effort to reverse those cuts could increase "downward pressures" on the U.S. rating, which S&P already lowered for the first time in August.

    Another top rater, Moody's Investors Service, said that the nation's rating is still on a "negative outlook."

    S&P became the first rater to downgrade the nation's credit in August, citing the nasty political fight over the debt limit and the lackluster deal that resulted from it.

    "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," S&P said in a statement announcing the August downgrade. "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."
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    Nov 23, 2011 2:12 AM GMT
    When are they going to put these frauds out of business? Who gives a shit what S&P thinks? They've proven incapable for actually determining the credit-worthiness or value of anything.
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    Nov 23, 2011 2:27 AM GMT
    Obama isn't a leader that has been proven. His Super Committee has failed us and it has shown in the stock market this week. The Dow was down 259 points yesterday and down another 60 points today. We should be cutting taxes to generate jobs in America and we should not be cutting defense spending to give to the occupy trash or obamacare.
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    Nov 23, 2011 2:22 PM GMT
    Christian73 saidWhen are they going to put these frauds out of business? Who gives a shit what S&P thinks? They've proven incapable for actually determining the credit-worthiness or value of anything.


    Experts sometimes give good advice and sometimes they give bad advice. They they still have value to some investors means that they still are willing to trust them - though they are almost always a lagging indicator (versus say CDSs which you apparently think should be made illegal). The ratings agencies are however also a government created oligopoly so you can thank regulation for that. Sadly these days they are left with the thankless task of telling truth to power - pointing out the obvious that government spending as it stands is woefully unsustainable and that's what you most object to.