Credit agencies warn GOP of 'death spiral'

[Chris]

House Republicans were cautioned Thursday in a closed door meeting with credit rating agency officials that a “death spiral” in the bond market was one of the possible outcomes in the event of default.

One official warned of a worst-case scenario in which a default on the nation’s credit could result in a rapid drop in bond values, sparking chaos in the markets — a dramatic warning as Washington worked on a possible deal on deficit reduction and an increase in the debt limit.

Credit agencies warn GOP of 'death spiral' - Marin Cogan - POLITICO.com

 

[CrusaderFrank]

And they're OK with Obama and the Dems blasting an annual trillion hole in the budget? LOL

 

[Steelplate]

The Conservative response whenever they hear something they don't like... What about Obama and his....(fill in the blank)..

Fucking Cultists.

 

[Stephanie]

OMG, WE ARE ALL GOING TO DIE if we don't give this damn Goverment MORE money to spend AS THEY WISH.

We're DOOMED DOOMED I SAY.

 

[Dont Taz Me Bro]

House Republicans were cautioned Thursday in a closed door meeting with credit rating agency officials that a “death spiral” in the bond market was one of the possible outcomes in the event of default.

One official warned of a worst-case scenario in which a default on the nation’s credit could result in a rapid drop in bond values, sparking chaos in the markets — a dramatic warning as Washington worked on a possible deal on deficit reduction and an increase in the debt limit.

Credit agencies warn GOP of 'death spiral' - Marin Cogan - POLITICO.com

What do you think is going to happen when China, who owns us (which you don't seem to have a problem with, strangely enough) decides not to buy any more bonds because we've run our debt up so high they no longer have confidence in our ability to repay it?

 

[imbalance]

The world economy stands to loose much more than the US in the event of a US default.

 

[imbalance]

What do you think is going to happen when China, who owns us (which you don't seem to have a problem with, strangely enough) decides not to buy any more bonds because we've run our debt up so high they no longer have confidence in our ability to repay it?

China doesn't own us yet. Default would ensure that they never do.

 

[uscitizen]

Why should we believe those credit ratings agencies? They did not even see the meltdown coming and rated junk mortgage packages as low risk.

A prime example of private industry being as bad or worse than the government.

 

[Stephanie]

And just HOW MANY of these threads do we need here telling us we are all going to die if we don't let this Government suck more money from us TAXPAYERS.

 

[rdean]

What's hilarious is GOP Gov. Bob McDonnell of Virginia saying so what on the debt ceiling. He said it doesn't affect him or his state. Oops.

Then Moody told him that Virginia, Maryland, New Mexico, South Carolina, and Tennessee would have their rating down graded. Down. Get it? Opposite of up?

Moody was making OF them:

EGG ZAMP PULLS.

Poor Bob. Now he's freaking out. Screaming for Republicans to raise the debt ceiling.

 

[BDBoop]

"We talked about the fact that a great nation in tough times must do great things," said Jealous. "And balancing our budget, balancing our fiscal house on the backs of retirees, students, poor people, the medically under-served is not a great thing. It's a cruel thing."

Intense Talks Continue to Avoid Default on US Debt | News | English

 

[Stephanie]

The Obama should never be trusted with OUR MONEY ever again.

He blew through 2 trillion dollars in just THREE YEARS that put us in this position this soon.

 

[Soggy in NOLA]

House Republicans were cautioned Thursday in a closed door meeting with credit rating agency officials that a “death spiral” in the bond market was one of the possible outcomes in the event of default.

One official warned of a worst-case scenario in which a default on the nation’s credit could result in a rapid drop in bond values, sparking chaos in the markets — a dramatic warning as Washington worked on a possible deal on deficit reduction and an increase in the debt limit.

Credit agencies warn GOP of 'death spiral' - Marin Cogan - POLITICO.com

So.... the answer is $16,000,000,000,000 of debt, not $14,000,000,000,000?

 

[Steelplate]

House Republicans were cautioned Thursday in a closed door meeting with credit rating agency officials that a “death spiral” in the bond market was one of the possible outcomes in the event of default.

One official warned of a worst-case scenario in which a default on the nation’s credit could result in a rapid drop in bond values, sparking chaos in the markets — a dramatic warning as Washington worked on a possible deal on deficit reduction and an increase in the debt limit.

Credit agencies warn GOP of 'death spiral' - Marin Cogan - POLITICO.com

What do you think is going to happen when China, who owns us (which you don't seem to have a problem with, strangely enough) decides not to buy any more bonds because we've run our debt up so high they no longer have confidence in our ability to repay it?

So... just out of curiosity... how much debt do you think China "owns" of ours? Don't look it up... just blurt out the first number that comes to your head.

The truth is.... they don't "OWN" us... nor is it even close to that.

 

[Steelplate]

And just HOW MANY of these threads do we need here telling us we are all going to die if we don't let this Government suck more money from us TAXPAYERS.

I love it... they are trying to come up with a plan that cuts $4T of the debt over 10 years and increase revenues to help out even MORE..... and you still think that raising the debt ceiling is about more spending...

It's because of cultists like you that nothing is getting done in this country.... it's because of people like YOU that we haven't recovered as well as we should have from the recession. People like YOU are not helping our country... you are hindering it. But you don't believe it.... because you are a CULTIST.. A SHIITE... a moron.

 

[Flopper]

European countries have defaulted 73 times in last 200 years. In this century there have been very few defaults mainly due to major stakeholders in the debt working out some financing scheme. Debt at 200% of GDP has been considered the danger signal, however Greece is about 160%. The US is at 100%.

To precipitate an economic crisis, the government doesn't have to default. All that is needed is for the holders of US debt to believe that the government will default. If that happens, 2008 will be a bump in the road compared to wholesaling dumping of US debt.

Of all the sovereign defaults, and there have been many over the last two centuries, I cannot find a single case where a nation that was not at war and had the capability of paying it's debts decided it wasn't going to pay them. A Germany banker made a comment in the Times a few days ago about the possibility of US default. He said, "I can't believe a US default could occur because the country is not being run by mad men."

 

[Chris]

This is what President Ronald Reagan said about what would happen if the debt ceiling were not raised in 1983:

“The full consequences of a default — or even the serious prospect of default — by the United States are impossible to predict and awesome to contemplate. Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and the value of the dollar in exchange markets. The Nation can ill afford to allow such a result. The risks, the costs, the disruptions, and the incalculable damage lead me to but one conclusion: the Senate must pass this legislation before the Congress adjourns.”

The message to current day Republicans is clear: The debt ceiling is not something to play politics with. It is not something to you take hostage to get your demands met.

Ronald Reagan on Raising the Debt Ceiling | Features

 

[Flagwavrusa]

House Republicans were cautioned Thursday in a closed door meeting with credit rating agency officials that a “death spiral” in the bond market was one of the possible outcomes in the event of default.

One official warned of a worst-case scenario in which a default on the nation’s credit could result in a rapid drop in bond values, sparking chaos in the markets — a dramatic warning as Washington worked on a possible deal on deficit reduction and an increase in the debt limit.

Credit agencies warn GOP of 'death spiral' - Marin Cogan - POLITICO.com

Im guessing the reason they didn't sit down with Obama and tell HIM about the "death spiral" is because they know he doesn't give a fuck.

 

[oreo]

House Republicans were cautioned Thursday in a closed door meeting with credit rating agency officials that a “death spiral” in the bond market was one of the possible outcomes in the event of default.

One official warned of a worst-case scenario in which a default on the nation’s credit could result in a rapid drop in bond values, sparking chaos in the markets — a dramatic warning as Washington worked on a possible deal on deficit reduction and an increase in the debt limit.

Credit agencies warn GOP of 'death spiral' - Marin Cogan - POLITICO.com

The house of representatives--with bi-partisan support from democrats has already passed it's Cut-Cap and Balance bill--which addresses raising the debt ceiling--as long as there are cuts to spending--and eventually we get a balanced budget amendment out of it. It is on Harry Reid's desk right now--and there is a planned vote on it tomorrow--Saturday.

It is BARACK OBAMA who has stated he will VETO this bill--which will in turn--create a crisis in our bond markets. The Senate has FAILED to act on any bill of their own. In fact they haven't produced a plan or bill for the last 800 days.

The house bill (cut-cap--& balance) is supported by 2/3's or 66% of the American population--according to today's CNN poll.

Two-thirds of Americans support House Cut Cap and Balance Plan | Conn Carroll | Beltway Confidential | Washington Examiner

According to this poll--I would suggest that Senate democrats and Barack Obama take a serious look at this bill before they stick their noses up at it. If not--it very well could be THEM that are blamed for rising interest rates and a bond collapse.

 

[Charles_Main]

The Conservative response whenever they hear something they don't like... What about Obama and his....(fill in the blank)..

Fucking Cultists.

So then what you are saying is you do not think our Credit Rating will go into the shitter if we just keep Borrowing Money like we are? Even though the same people who Cautioned Congress today, Cautioned The Obama Admin and Democrats in Congress before already that we must cut our Borrowing and get our House in order?

You partisan Hacks on both sides are the fucking problem. Were Fucked if we Default, and Were Fucked if we just keep borrowing and do not convince them that we are getting our spending in check.

So Far I don't see shit out of the Democrats that looks like us trying to get our House in order.

this is one of those moments that will go down in history. If we do not come up with a compromise that includes enough changes to fiscal Policy to convince the Credit Raters that we got the message, People will look back on this day and say that was when the end started.

Any of you fucks that think the message today was you better increase the Borrowing Limit or your fucked is a complete idiot. They want us to do much more than just Increase the Limit. They want us to get our fucking shit together.

Or do you fucking idiots actually believe if a person was in as bed of Debt comparatively as the US is, and the only thing they did was Apply for another line of Credit so they could keep paying the Payment on all the others, That it would help there credit rating?

Really?

lol