Next Comes The US Downgrade

Discussion in 'Politics' started by Wehrwolfen, Jan 2, 2013.

  1. Wehrwolfen
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    Wehrwolfen Senior Member

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    Next Comes The US Downgrade​



    by Tyler Durden
    01/02/2013


    From SocGen:
    The scaled-down deal passed in the Senate addressed the fiscal cliff but did nothing to address longer term fiscal health of the nation. This puts the US rating at risk for a downgrade. However, credit rating agencies may decide to wait and see what emerges from the subsequent talks. There is an implicit new cliff at the end of February related to the sequester and to the expected exhaustion of extraordinary measures related to the debt ceiling. This date is expected to be used by Republicans as leverage for spending cuts. President Obama has already signaled that a new round of spending cuts – those related to the sequester as well as entitlement spending – will have to be matched by additional revenue increases. Therefore entitlement and tax reform are likely to be at the center of discussions over the next two months.

    And recall from Moody's in September:


    Budget negotiations during the 2013 Congressional legislative session will likely determine the direction of the US government's Aaa rating and negative outlook, says Moody's Investors Service in the report "Update of the Outlook for the US Government Debt Rating."

    If those negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term, the rating will likely be affirmed and the outlook returned to stable, says Moody's.

    If those negotiations fail to produce such policies, however, Moody's would expect to lower the rating, probably to Aa1.

    Moody's views the maintenance of the Aaa with a negative outlook into 2014 as unlikely. The only scenario that would likely lead to its temporary maintenance would be if the method adopted to achieve debt stabilization involved a large, immediate fiscal shock—such as would occur if the so-called "fiscal cliff" actually materialized—which could lead to instability. Moody's would then need evidence that the economy could rebound from the shock before it would consider returning to a stable outlook.

    [Excerpt]

    Read more:
    Next Comes The US Downgrade | ZeroHedge
     
  2. Soggy in NOLA
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    Soggy in NOLA Platinum Member

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    Yep... one manufactured crisis after another.
     
  3. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Obama: the Downgraded President
     
  4. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Did Romney ever mention the downgrade or would that have been considered racist?
     
  5. beretta304
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    beretta304 BANNED

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    It's Bush's fault. :cool:
     
  6. The Infidel
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    The Infidel EVIL CONSERVATIVE

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    It's racist to even suggest it.
     
  7. Old Rocks
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    Old Rocks Diamond Member

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    Oh my, the butthurt just oozing from this board. Once again, our President has shown himself to be a smarter man than you 'Conservatives' ever thought him to be. You created this crisis, and it turned around and bit you good:badgrin::eusa_boohoo:
     
  8. VaYank5150
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    VaYank5150 Gold Member

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    Romney was too busy spittin on the 47%ers....
     
  9. beretta304
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    beretta304 BANNED

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    It bit you too asshole. :badgrin::badgrin::clap2:
     
  10. Avatar4321
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    Avatar4321 Diamond Member Gold Supporting Member

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    you mean by trying to save them?

    You really have no idea what's coming do you?
     

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