Uh oh. This just in:

quote:

S&P warns of a second downgrade One day after lowering the nation’s platinum triple-A credit rating, Standard & Poor’s analysts warned Saturday that the U.S. government could face a second downgrade if the economy continues to struggle and the government fails to make the cuts outlined in the debt ceiling agreement...

http://www.politico.com/news/storie...l#ixzz1UIySO373

http://www.huffingtonpost.com/2011/...r_n_920152.html

quote:

On the same night that Standard and Poor's downgraded the United States' top-level credit rating for the first time in history, Christina Romer, former chair of Obama's Council of Economic Advisers, didn't mince words when asked of downgrade's potential consequences. (h/t NewsBusters) The U.S. is "pretty darn f**ked," Romer said during a segment on Real Time with Bill Maher called “How F**ked Are We?”, after Maher asked what the new could mean for the U.S. economy. "I’ve been hanging around [Treasury Secretary] Tim Geithner too long," Romer said, explaining her foul language. Geithner, she says, swears "like a seventh grade boy."

That guy is right about bailout being paid back by borrowing. That's what GM did. A lot of companies borrowed to pay back gov bailouts because it limited CEO compensation because after all, isn't that the point of capitalism? It's interesting how all mainstream media has a spin that is pro pumping economy.

Also downgrades by a single agency does not matter. Even the Fed made a statement that basically said 'whatever bro'. Financial institutions often have a rules stating they cannot hold paper assets that are not AAA, as long as some credit rating agencies rate treasury bonds as AAA that's good enough.
Anyway, other sovereign banks already know how shitty the situation is in America. All of Western Europe is shitty and China is trying to keep the fiat game going a bit longer as it gets free technology and probably a quicker growth rate, and lower unemployment while this game keeps going.

I think I said buy gold back in 08 on these forums? Yeah still do that, except physical now because the futures exchange in America is rigged.

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soulful/latin/deep house + jazz

quote:

Originally posted by mndeg That guy is right about bailout being paid back by borrowing.

show me the money.

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quote:

Originally posted by mndeg and China is trying to keep the fiat game going a bit longer as it gets free technology and probably a quicker growth rate, and lower unemployment while this game keeps going.

You have clearly never been to a buffet.

FAO Kevin:

LINK

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Have you seen, anywhere, in any media, or even heard reported or repeated on NPR, the following sentence? “We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.” It’s right there on Page 4 of the official Standard & Poors “Research Update” – the actual report on what they did and why – published on August 5th as the explanation for why they believe Congress – and even the Gang of Twelve – will be unable to actually deal with the US debt crisis. Perhaps it’s just lazy – the bullet points at the beginning of the report don’t mention the Republicans or taxes, but instead just say, for example (part of one of six quick bullet-points): “[T]he downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges…” In order to figure out that one of the reasons why is that “Republicans in the Congress continue to resist any measure that would raise revenues,” a hard-working reporter would have to read to page four of the eight-page report. It’s just too much effort for most reporters? Although they do also mention this in the very first sentence of the report: “We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process.” (Italics mine) Or could it be that many reporters – and virtually all of the television talking heads – are themselves relatively high income-earners who don’t relish the idea of higher taxes? Or could it be that reporters are afraid that if they report the actual language of the S&P Research Report, then Republicans will punish them by denying them “access” – i.e. refusing to show up on their programs – which is the career and show kiss-of-death for radio and TV programs that rely on big-name politicians to work? I don’t know the reason, but it’s fascinating to see all the huffing and puffing about the S&P downgrade of America’s debt that all seems to be working so hard to avoid mentioning that critical sentence.

This really deserves its own thread...

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-Everything I Say is a Lie-

Gee, S&P must be a bunch of socialists in the pocket of Obama!

Ironically, it may be the communists who rescue the capitalist pork in the USA and EU.

Im really not worried. With the tax cut created by the stimulus & the Bush tax cuts getting extended, the economy should start kicking ass anytime now.

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quote:

Originally posted by jonSun Im really not worried. With the tax cut created by the stimulus & the Bush tax cuts getting extended, the economy should start kicking ass anytime now.

I'm assuming that was sarcasm.

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"In a world of illusion you only see what you feel"

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Originally posted by The17sss The truth hurts eh? You voted for the first administration ever to preside over a credit rating downgrade. No wonder every one of his original economic team (except Giethner) has quietly left and gone back to the friendly confines of their university teaching jobs... they knew what was coming and didn't want their fingerprints all over it.

Stop being such a stupid idiot. It's beneath you.

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