- Feb 12, 2007
- 59,384
- 24,018
- 2,290
Finally getting around to acknowledging the obvious, the S&P has reduced it's outlook for the U.S. to NEGATIVE.
Get ready for higher interest rates on the debt, and an even bigger (Unexpected!) Obama deficit as a result.
As Paul Ryan noted, this is the most obvious financial crisis we have ever faced. Spending and debt are out of control. The official financial report from the U.S. Treasury (based on GAAP accounting, instead of cash accounting) shows a net present value of ($30T) on unfunded entitlement liabilities. 60% of current federal spending is on these programs, and it's going to get worse.
We either fix this now - or watch the destruction of the dollar, and a permanent shift to a moribund low growth, high unemployment Euro-Socialst style economy.
Standard & Poor's Ratings Services Inc. cut its outlook on the U.S. to negative, increasing the likelihood of a potential downgrade from its triple-A rating, as the path from large budget deficits and rising government debt remains unclear.
"More than two years after the beginning of the recent crisis, U.S. policy makers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures," S&P credit analyst Nikola G. Swann said. He said the rating agency puts the chance of a U.S. downgrade within two years at least one-in-three.
The move comes amid continued hand-wringing over the balance sheet of the world's largest economy and disagreement among politicians on how to address fiscal woes as economic growth remains tepid.
S&P Cuts U.S. Ratings Outlook to Negative - WSJ.com
Get ready for higher interest rates on the debt, and an even bigger (Unexpected!) Obama deficit as a result.
As Paul Ryan noted, this is the most obvious financial crisis we have ever faced. Spending and debt are out of control. The official financial report from the U.S. Treasury (based on GAAP accounting, instead of cash accounting) shows a net present value of ($30T) on unfunded entitlement liabilities. 60% of current federal spending is on these programs, and it's going to get worse.
We either fix this now - or watch the destruction of the dollar, and a permanent shift to a moribund low growth, high unemployment Euro-Socialst style economy.
Standard & Poor's Ratings Services Inc. cut its outlook on the U.S. to negative, increasing the likelihood of a potential downgrade from its triple-A rating, as the path from large budget deficits and rising government debt remains unclear.
"More than two years after the beginning of the recent crisis, U.S. policy makers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures," S&P credit analyst Nikola G. Swann said. He said the rating agency puts the chance of a U.S. downgrade within two years at least one-in-three.
The move comes amid continued hand-wringing over the balance sheet of the world's largest economy and disagreement among politicians on how to address fiscal woes as economic growth remains tepid.
S&P Cuts U.S. Ratings Outlook to Negative - WSJ.com
Last edited:
