U.S. Credit Outlook Cut by S&P on Deficit Concerns

April 18, 2011

  • April 18, 2011 at 1:34 pm
    Brian says:
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    “We believe S&P’s negative outlook underestimates the ability of America’s leaders to come together to address the difficult fiscal challenges facing the nation,” said Mary Miller, assistant Treasury secretary for financial markets.

    Oh really? What leaders? They can agree on 61 billion in cuts when the that isn’t even 1/12 the current spending excess.

    • April 18, 2011 at 3:15 pm
      agent says:
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      Actually Brian, it was watered down to 38Bil in cuts and then after some fancy footwork, to 352 million. How is that for a spending cut? It is no wonder S&P gave a negative rating. They realize we don’t have leaders who can agree on anything. Meanwhile, our POTUS is out giving campaign speeches advocating soaking the rich. I’m sure that is going to create a lot of jobs when Small Business stops all hiring this year and next. Nero fiddled while Rome burned and that is what is going on right now.

      • April 18, 2011 at 3:41 pm
        Brian says:
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        I meant to say “can’t” but you see where I’m coming from. Even with the S&P outlook change it still won’t be enough to get these absurd substitutes for leaders to do what is needed. Nor does the public have the stomach for it.

        Maybe if S&P changes the credit rating to BBB they will act. I have grave concerns long term for the US.

  • April 18, 2011 at 1:44 pm
    No leadership says:
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    …not to mention the tax cuts recently passed that we really cannot afford right now. Listen to David Stockton, Reagan’s old budget director, and the bipartisan committee led by Simpson and Boles…

  • April 20, 2011 at 9:14 am
    ComradeAnon says:
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    Same group that labeled junk as AAA? Why do we give a rats a$$ what they think?

    • April 20, 2011 at 11:19 am
      Brian says:
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      Because we are clinging to any shred of hope that sanity will enter into the arena, thats why.

  • April 21, 2011 at 11:23 am
    Buckeye says:
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    The rating by S&P has the potential to become a bit of a thorn in the side of our ruling class (politicians in both parties). However, it would be reasonable to expect anything to change for two reasons: 1) the ruling class will quickly get back to business as usual and 2) the electorate’s short attention span will rule the day as we go back to focusing on monumentally important issues such as reality TV or the next episode of Glee.

    What really fascinates me is the debate on the S&P rating and commentary. Debating the basis of S&P’s position or its history on other organizatins is nothing more than an excercise in futility. Do we really need S&P to tell us we are in the midst of a fiscal calamity? We are not heading towards a fiscal crisis. Rather, we are knee deep in one as we speak.

    Almost $15 trillion in debt (which does not include unfunded liabilities from social programs) on revenue of about $2 trillion? A budget deficit that is well over half of the gross revenue? And we need S&P to tell us we have a bit of a problem?

    If a private sector organization had a financial picture even remotely similar to the federal government, do we really think it would retain AAA status with a dip to a negative outlook? Only a buffoon would answer “yes” to this question.

    People get all fired up about a Bernie Madoff based on the financial harm he inflicted on individuals, but he is a chump compared to the crooks running and propping up the federal government.

    We have milliions of people who don’t pay a lick in taxes. Therefore, it is not only fashionable, but now politically possible to get elected and remain in power on a platform of going after the evil rich with higher tax rates. Just as important, though, is the vast number of people and organizations (yes, this includes big corporations) who are on the receiving end of government outlays (a.k.a. political patronage).

    Therefore, the American people talk a good game, but are very simply unwilling to make the necessary reforms to our tax code and government structure and spending. This creates hypocrisy based on two overriding realities: 1)tax rate increases are good as long as they only apply to others and 2) government spending is bad as long as I don’t have to give up my goodies.

    We have a bunch of people running around in a state of hysteria claiming our public officials are asleep at the switch while our nation is crumbling. I think it is better stated that the American people are asleep at the switch.

    The reality is our public officials act in a manner supported and condoned by the American people. If we truly did not like their behavior or the state of affairs, then we would very simply make the necessary changes. Our States and local commumnities are in on the action, too, since they continue to play ball with the federal government instead of taking a stand based on principle and the Constitution.

    This is nothing more than a case of getting exactly what we deserve.



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