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It Actually Occurred: S&P DOWNGRADED the Credit Rating of the United States of America

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Bloviating Zeppelin: It Actually Occurred: S&P DOWNGRADED the Credit Rating of the United States of America

Bloviating Zeppelin

(in-ep-toc'-ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

Saturday, August 06, 2011

It Actually Occurred: S&P DOWNGRADED the Credit Rating of the United States of America

A very few people, in one company, determined an edict that will have complications to come for quite some time.

Standard & Poors just now downgraded the credit rating of the United States of America for the very first time in its history, from a AAA rating to a AA+ rating.

And that makes every difference in the world. Literally.

Under the watch of Mr Barack Hussein Obama.

You OWN it, sir.

We are now, adrift, in completely uncharted territory.

Standard & Poor’s announced Friday night that it has downgraded the United States credit rating for the first time, dealing a huge symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.

Lowering the nation’s rating one-notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less stable, less effective and less predictable.” It said the bi-partisan agreement reached this week to find $2.1 trillion in budget savings “fell short” of what was necessary to tame the nation’s debt over time and predicted that leaders would have no luck achieving more savings later on.

The decision came after a day of furious back-and-forth between the Obama administration and S&P. Government officials fought back hard, arguing that S&P made a flawed analysis of the potential for political agreement and had mathematical errors in its initial analysis, which was submitted to the Treasury earlier in the day. The analysis overstated the U.S. deficit over 10 years by $2 trillion.

“A judgment flawed by a $2 trillion error speaks for itself,” a Treasury spokesperson said Friday.

The downgrade will push the global financial markets into unchartered territory after a volatile week fueled by concerns over the European debt crisis and the slowdown in the U.S. economy.

Analysts say that, over time, the downgrade is likely to push up borrowing costs for the U.S. government, costing taxpayers tens of billions of dollars a year. It could also drive up costs for borrowing for consumers and companies seeking mortgages, credit cards and business loans.

A downgrade could also have a cascading series of effects on states and localities, including nearly all of those in the Washington metro area. These governments could lose their AAA credit ratings as well, potentially raising the cost of borrowing for schools, roads and parks.

But the exact impact of the downgrade won’t be known until at least Sunday night, when Asian markets open, and perhaps not fully grasped for months. Analysts say the impact on the markets may be modest because they have been anticipating an S&P downgrade for weeks.

This occurred on a Friday, when there are two days before the markets open on Monday. And this has the chance to affect, obviously, every aspect of American finance and commerce. From loans to the prime rate to gas prices to trucking rates to food and water and shelter to the ability of the United States to even defend itself.

Every mortgage in the US could be "called" in a fiscal constriction. Every person owing cash on their homes could find themselves in foreclosure.

This is no joke.

No one has any idea where this could go, in our current environment.

If you think this rating has no affect upon you, you would be so incredibly wrong.

This is uncharted, incredibly uncharted territory. Everything is up for grabs.

BZ

10 Comments:

Blogger TexasFred said...

It's Bush's fault... That will be the mantra on ALL the news programs and political programs over the weekend and Monday will be a day from HELL on Wall St.

Fri Aug 05, 09:16:00 PM PDT  
Blogger Greybeard said...

What boggles my mind is how the sheeples are now trying to blame this plummeting economy on the T.E.A. Party. It truly is akin to the lies Hitler told Germans...
Tell "the big lie" loud and often enough and they will believe it.

Sat Aug 06, 01:11:00 AM PDT  
Blogger Always On Watch said...

We. Are. Screwed.

Yes, this is happening on Obama's watch.

I understand that the White House frantically tried to persuade S&P not to downgrade the U.S. credit rating. But the White House couldn't schmooze S&P.

Hang onto your seats, folks. It's going to be a bumpy ride until at least 2012 -- if not well beyond that date.

Sat Aug 06, 02:26:00 AM PDT  
Blogger Always On Watch said...

A visual representation of what the Obama regime and the RINO's are doing to us.

Sat Aug 06, 02:31:00 AM PDT  
Blogger Bloviating Zeppelin said...

I'm certain that S&P did this on a Friday after the markets closed in order to not tank the market in one day, and to provide the weekend to, perhaps, cool things down. Monday will be The Day.

BZ

Sat Aug 06, 04:59:00 AM PDT  
Blogger tha malcontent said...

All this and Obambi continues to have a good time. I can't help but to despise this guy.

Sat Aug 06, 05:35:00 AM PDT  
Blogger Bloviating Zeppelin said...

The only so-called "bright point" from this is that the two other ratings houses, Moody's and Fitch, didn't step in and do the same thing, downgrade us to AA+, the same rating as, say, Belgium and New Zealand.

On the other hand, this should be a huge, a massive WAKE UP call. But I have NO confidence whatsoever that Mr Obama and his incompetents are listening in the slightest.

BZ

Sat Aug 06, 11:31:00 AM PDT  
Blogger Z said...

AOW..you said "I understand that the White House frantically tried to persuade S&P not to downgrade the U.S. credit rating. But the White House couldn't schmooze S&P."

I heard an expert on Hugh Hewitt THursday say this was done FOR the White House, that this is all political; pro Dems. How, I didn't quite understand. This expert Hewitt thinks a lot of also thought this would NOT affect us as badly as predicted.
That's all I can do now, concentrate on that guy's wisdom!

BZ, I don't think there's any way banks are suddenly going to send us closing invoices on our mortgages! ARE THEY?

Sat Aug 06, 12:13:00 PM PDT  
Blogger Leticia said...

I am speechless and quite frankly, disgusted.

Not to worry, somehow this will be President Bush's fault.

Sat Aug 06, 02:52:00 PM PDT  
Blogger Bloviating Zeppelin said...

Z, everything is going to be predicated on how the stock market reacts on Monday. If it crashes beyond the 512 it recoiled on Thursday -- say, not just hundreds but thousands of points -- anything can happen. No one can predict. It's ALL -- I repeat -- ALL about EMOTIONS and how one FEELS about the current status of US holdings and its fiscal status.

If people aren't much bothered by AA+, then things are fine. If they're aghast, then things will plummet.

The market can tank and there can be an actual depression in the course of ONE day. Make no mistake about that whatsoever. EVERYTHING can change in the course of one day.

BZ

Sat Aug 06, 03:37:00 PM PDT  

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