Breaking: S&P Downgrade 50/50

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#1 Thu, Jul 14, 2011 - 8:16pm
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Black Hole Sun
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Breaking: S&P Downgrade 50/50

By Michael Kitchen

LOS ANGELES (MarketWatch) -- Standard & Poor's Ratings Services said late Thursday it has placed U.S. sovereign credit ratings on watch for possible downgrade, saying the action "signals our view that, owing to the dynamics of the political debate on the debt ceiling, there is at least a one-in-two likelihood that we could lower the long-term rating on the U.S. within the next 90 days." S&P had already lowered its outlook on the U.S. AAA long-term rating to negative in April, but since then "the political debate about the U.S.' fiscal stance and the related issue of the U.S. government debt ceiling has, in our view, only become more entangled," it said. The U.S. Treasury responded to the move Thursday saying it "restates what the Obama Administration has said for some time: that Congress must act expeditiously to avoid defaulting on the country's obligations and to enact a credible deficit reduction plan that commands bipartisan support."

Edited by: ¤ on Nov 8, 2014 - 5:05am
Thu, Jul 14, 2011 - 9:21pm
ScottJ
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Rating Agencies...  It's

Rating Agencies... 

It's Good, It's Bad, It's Better than Bad, Its worse than good, Possible Review, 1 in 2 chance (LOL?), ....

All leading to this....

Take everything in moderation, including moderation~
Fri, Jul 15, 2011 - 9:50am
Violent Rhetoric
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I too have placed US debt on

I too have placed US debt on credit watch negative.

Throughout history, poverty is the normal condition of man. Advances which permit this norm to be exceeded — here and there, now and then — are the work of an extremely small minority, frequently despised, often condemned, and almost always opposed by all right-thinking people. Whenever this tiny minority is kept from creating, or (as sometimes happens) is driven out of a society, the people then slip back into abject poverty. This is known as “bad luck.” ~ Robert Heinlein
Fri, Jul 15, 2011 - 10:47am
Dr Durden
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We need the American Medical

We need the American Medical Association to start rating governments. If a group of physicians was allowed to assess or cancer, we'd have already gone through chemo, radiation and be into remission by now. 

As far as the ratings companies go, it's like my gramps likes to say: you can't make chicken salad out of chicken shit. The US has been a chicken shit sandwich since at least 1971. Moody's just tries to add some extra mayo to cover up the fecal base.

Got GIABO? "It's called the American dream, because you have to be asleep to believe it." ~George Carlin
Fri, Jul 15, 2011 - 10:54am
FalseParadigm
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To be expected

50/50 = two scenarios

#1 Default = AAA downgraded
#2 Raising the debt ceiling = No changes. 

There will be a deal though which will send metals heading down.