The Hill: S&P credit rating analysis values spending cuts more than tax revenue

[dilloduck]

They were in good shape before they were forced to shoulder the bad mortgages made by financial institutions.

And SSI doesn't have problems. They are solvent for at least a quarter century.

Where you been?

Solvent
because the baby boom, the largest segment of our population, was paying in and not collecting
well that has changed now

There is no real money there
just yellowing IOU's from a gov't that is broke

The Left really is bad with finance

Who ELSE besides social security admin owns Government debt, Neo?

Do you know?

Are they broke, too?

Because if SSA is broke because they have government bonds, then aren't the 401 K, insurance companies, banks, corporations whose books have government debt in the ASSET columns ALSO in trouble?

And if they're ALL in trouble, then isn't the entire economic system dubious?

I only ask because I'm trying to gauge just exactly how much you really understand about that debt and who will be in trouble if the FED stops paying it back.

WHO else, what other institutions, own that $12.6 trillion or so worth of government bonds?

Here: $14 Trillion in Debt, But Who Owns All That Money? - Yahoo! Finance

Now imagine what happened to the world economy if SSA doesn't get paid, and neither does any other creditor of the US government.

Do you think only social security recipients are going to get hurt?

Yes---I don't think there can be any doubt that our entire banking system is dubious. Virtual money doesn't seem to be working and we're having a hard time spending all that money that will be coming to us in the future.

 

[Neotrotsky]

They were in good shape before they were forced to shoulder the bad mortgages made by financial institutions.

And SSI doesn't have problems. They are solvent for at least a quarter century.

Where you been?

Solvent
because the baby boom, the largest segment of our population, was paying in and not collecting
well that has changed now

There is no real money there
just yellowing IOU's from a gov't that is broke

The Left really is bad with finance

Who ELSE besides social security admin owns Government debt, Neo?

Do you know?

Are they broke, too?

Because if SSA is broke because they have government bonds, then aren't the 401 K, insurance companies, banks, corporations whose books have government debt in the ASSET columns ALSO in trouble?

And if they're ALL in trouble, then isn't the entire economic system dubious?

I only ask because I'm trying to gauge just exactly how much you really understand about that debt and who will be in trouble if the FED stops paying it back.

WHO else, what other institutions, own that $12.6 trillion or so worth of government bonds?

Here: $14 Trillion in Debt, But Who Owns All That Money? - Yahoo! Finance

Now imagine what happened to the world economy if SSA doesn't get paid, and neither does any other creditor of the US government.

Do you think only social security recipients are going to get hurt?

All in trouble- yes
If the gov't continues as is and
the economy does not grow


Good question
At the rate we are going, where is all that money
the US gov't does not really have it

I guess it depends how much money the
Chinese are willing to give us

 

[tinydancer]

Wow...it sounds to me like the S&P is looking for the BALANCED approach the President has been speaking about.

Have you a link to a direct quote on that? Because I've put up a specific quote by David Beers on spending cuts.

 

[Newby]

You must mean in future negotiations

No, I mean you're an idiot. The GOP won't agree to tax increases, period. Why should the Democrats, who represent more of the People than the Republicans do,

simply become Republicans??

Yeah, they represent the 51% of Americans who pay NO income tax, so sure they want everyone else's taxes raised to pay for the entitlement programs that THEY benefit from. Unfortunately, that's not a sucessful way to run a business, let alone a country. You want to put taxes on the table, then put something on there where EVERYONE contributes to the big mess the D's have created for all of us.

 

[Neotrotsky]

Wow...it sounds to me like the S&P is looking for the BALANCED approach the President has been speaking about.

Have you a link to a direct quote on that? Because I've put up a specific quote by David Beers on spending cuts.

They ignore the official press release
where S&P says

"Standard & Poor’s takes no position on the mix of spending and revenue measures that
Congress and the Administration might conclude is appropriate for putting the U.S.’s finances on a sustainable footing."​

The Left bases their claims on an interview on CNN with some S&P official

 

[iamwhatiseem]

Oh, so you're saying that it's unfair to hold a politician to a promise if the other party blocks that promise from being fulfilled?

And you wouldn't?

I don't recall President Obama getting that slack.

What slack? I don't recall the President being in a position where he was blocked from doing his job.
Please tell me when he was.

 

[Seawytch]

Wow...it sounds to me like the S&P is looking for the BALANCED approach the President has been speaking about.

Have you a link to a direct quote on that? Because I've put up a specific quote by David Beers on spending cuts.

And the quotes by S&P execs regarding revenue increases have already been posted...about a million times.

 

[Truthmatters]

A Government-Mandated Housing Bubble

There is very little doubt that the underlying cause of the current credit crisis was a housing bubble. But the collapse of the bubble would not have led to a worldwide recession and credit crisis if almost 40% of all U.S. mortgages--25 million loans--were not of the low quality known as subprime or Alt-A

For that we have to look to the government's distortion of the mortgage finance system through the Community Reinvestment Act and the government-sponsored enterprises (GSEs) Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ).

Long-term pressure from Frank and his colleagues to expand home ownership connects government housing policies to both the housing bubble and the poor quality of the mortgages on which it is based. In 1992, Congress gave a new affordable housing "mission" to Fannie and Freddie, and authorized the Department of Housing and Urban Development to define its scope through regulations.​

Sad thing is
the Left trust these people to do even more for us

‪Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis‬‏ - YouTube

How many times are you going to ignore the real facts and buy lock stock and barrel utter crap from sites that are designed and paid for by people who want to manipulate your vote to benifit them and their historically failed ideas?

 

[Neotrotsky]

And you wouldn't?

I don't recall President Obama getting that slack.

What slack? I don't recall the President being in a position where he was blocked from doing his job.
Please tell me when he was.

and whatever he did do was poor...

In fact, when he actually submitted a budget, the one so bad
even the entire Senate voted it down,
some Democrats from his own commission found the Ryan budget to be better
than Papa Obama's

Bowles, a Democrat who co-chaired the Presidential Deficit Commission and was appointed by Barack Obama, says the President’s budget proposal falls short on several key goals. In fact, he says it’s inferior to Paul Ryan’s plan.
Since we are all "pro-board" now, this must be a good thing


Erskine Bowles Claimed the President's Deficit Plan Falls Short of Key Goals


[ame=http://www.youtube.com/watch?v=Ba4qevF6xmU]‪Erskine Bowles Claimed the President's Deficit Plan Falls Short of Key Goals‬‏ - YouTube[/ame]

Bowles: It is $4 trillion, however, over 12 years. It is heavily back-end loaded, so when you compare it to the Ryan plan and to the Commission’s plan, which also has $4 trillion in savings, it is probably more like $2.5 trillion. And in fairness, the way it is setup, according to our analysis, it really doesn’t stabilize the debt, and the debt as a percentage of GDP gets up to around 77 percent and it never gets to primary balance, which is about a deficit-to-GDP ratio of around 3 percent.​

 

[Neotrotsky]

A Government-Mandated Housing Bubble

There is very little doubt that the underlying cause of the current credit crisis was a housing bubble. But the collapse of the bubble would not have led to a worldwide recession and credit crisis if almost 40% of all U.S. mortgages--25 million loans--were not of the low quality known as subprime or Alt-A

For that we have to look to the government's distortion of the mortgage finance system through the Community Reinvestment Act and the government-sponsored enterprises (GSEs) Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ).

Long-term pressure from Frank and his colleagues to expand home ownership connects government housing policies to both the housing bubble and the poor quality of the mortgages on which it is based. In 1992, Congress gave a new affordable housing "mission" to Fannie and Freddie, and authorized the Department of Housing and Urban Development to define its scope through regulations.​

Sad thing is
the Left trust these people to do even more for us

‪Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis‬‏ - YouTube

How many times are you going to ignore the real facts and buy lock stock and barrel utter crap from sites that are designed and paid for by people who want to manipulate your vote to benifit them and their historically failed ideas?

perhaps

but ad hominem arguments provide no proof
of why they are wrong

 

[tinydancer]

I'd really like to see the Dems come out of la la land.

Good grief they're out there slamming the crap out of S&P. Are they begging for another downgrade? Chicago style politics will not work with these people. The administration apparently called them amateurs?

Whoa geeze.

Here's another quote:

Hitting back at the Obama administration which loudly questioned its unprecedented downgrade of US' credit rating, Standard & Poor's on Sunday defended its excellent track record and said the move was necessitated by America's growing debt burden

S&P's David Beers said the world's largest economy continues to be at a "downside" risk and the criticism of the agency was largely a "misrepresentation of facts".

 

[Neotrotsky]

You must mean in future negotiations

No, I mean you're an idiot. The GOP won't agree to tax increases, period. Why should the Democrats, who represent more of the People than the Republicans do,

simply become Republicans??

Oh no that would be someone
who pretends that the Democrats put everything on the
table, including PapaObama Care, during the last debt
ceiling negotiations

ObamaCare was never on the table

Cantor said that every time Democrats insisted on tax increases, Republicans countered by insisting on repealing Obamacare, resulting in a stalemate that eventually led Cantor and House Republicans to walk out of the talks all together.​

 

[tinydancer]

Wow...it sounds to me like the S&P is looking for the BALANCED approach the President has been speaking about.

Have you a link to a direct quote on that? Because I've put up a specific quote by David Beers on spending cuts.

And the quotes by S&P execs regarding revenue increases have already been posted...about a million times.

And I'm posting direct quotes from David Beers that the downgrade was related to America's debt burden.

 

[Sallow]

You must mean in future negotiations

No, I mean you're an idiot. The GOP won't agree to tax increases, period. Why should the Democrats, who represent more of the People than the Republicans do,

simply become Republicans??

Yeah, they represent the 51% of Americans who pay NO income tax, so sure they want everyone else's taxes raised to pay for the entitlement programs that THEY benefit from. Unfortunately, that's not a sucessful way to run a business, let alone a country. You want to put taxes on the table, then put something on there where EVERYONE contributes to the big mess the D's have created for all of us.

Well not exactly. They pay taxes. Just not Federal Income Taxes.

And it was President Bush that crafted that little outcome. And he did it instead of doing anything about the wide gap between rich and poor.

Makes you wonder. Why the heck would someone NOT want to do something about it. Why at the same company are there people being paid 20 million and people being paid 30 thousand a year? Seem fair? Seem even equitable?

Bush also changed the way overtime rules work. Make someone a "manager" and you don't have to pay them overtime.

So instead of doing something about income disparity and doing something positive about equitable wages..Bush gave them a "tax break". Which hurts the coffers of the US government and the ability of people to make ends meet.

Gee thanks.

And NOW you guys are complaining about that. You want to eat into the incomes of people that can least afford it. Scourge anyone?

 

[mudwhistle]

A Government-Mandated Housing Bubble

There is very little doubt that the underlying cause of the current credit crisis was a housing bubble. But the collapse of the bubble would not have led to a worldwide recession and credit crisis if almost 40% of all U.S. mortgages--25 million loans--were not of the low quality known as subprime or Alt-A

For that we have to look to the government's distortion of the mortgage finance system through the Community Reinvestment Act and the government-sponsored enterprises (GSEs) Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ).

Long-term pressure from Frank and his colleagues to expand home ownership connects government housing policies to both the housing bubble and the poor quality of the mortgages on which it is based. In 1992, Congress gave a new affordable housing "mission" to Fannie and Freddie, and authorized the Department of Housing and Urban Development to define its scope through regulations.​

Sad thing is
the Left trust these people to do even more for us

‪Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis‬‏ - YouTube

How many times are you going to ignore the real facts and buy lock stock and barrel utter crap from sites that are designed and paid for by people who want to manipulate your vote to benifit them and their historically failed ideas?

You mean like The White House

 

[Neotrotsky]

a government-mandated housing bubble

there is very little doubt that the underlying cause of the current credit crisis was a housing bubble. But the collapse of the bubble would not have led to a worldwide recession and credit crisis if almost 40% of all u.s. Mortgages--25 million loans--were not of the low quality known as subprime or alt-a

for that we have to look to the government's distortion of the mortgage finance system through the community reinvestment act and the government-sponsored enterprises (gses) fannie mae (nyse: Fnm - news - people ) and freddie mac (nyse: Fre - news - people ).

Long-term pressure from frank and his colleagues to expand home ownership connects government housing policies to both the housing bubble and the poor quality of the mortgages on which it is based. In 1992, congress gave a new affordable housing "mission" to fannie and freddie, and authorized the department of housing and urban development to define its scope through regulations.​

sad thing is
the left trust these people to do even more for us

‪shocking video unearthed democrats in their own words covering up the fannie mae, freddie mac scam that caused our economic crisis‬‏ - youtube

how many times are you going to ignore the real facts and buy lock stock and barrel utter crap from sites that are designed and paid for by people who want to manipulate your vote to benifit them and their historically failed ideas?

you mean like the white house

ouch !

 

[Neotrotsky]

I'd really like to see the Dems come out of la la land.

Good grief they're out there slamming the crap out of S&P. Are they begging for another downgrade? Chicago style politics will not work with these people. The administration apparently called them amateurs?

Whoa geeze.

Here's another quote:

Hitting back at the Obama administration which loudly questioned its unprecedented downgrade of US' credit rating, Standard & Poor's on Sunday defended its excellent track record and said the move was necessitated by America's growing debt burden

S&P's David Beers said the world's largest economy continues to be at a "downside" risk and the criticism of the agency was largely a "misrepresentation of facts".

Straight Up

S&P must be racist

 

[Sallow]

Excellent track record????



Again Mortgage Back Securities had a AAA rating. By the S&P. That's like saying the Titanic had an excellent track record.

 

[Full-Auto]

Excellent track record????



Again Mortgage Back Securities had a AAA rating. By the S&P. That's like saying the Titanic had an excellent track record.

Should we post BARNEYS COMMENTS? Or the historical accuracy of the CBO?

 

[Neotrotsky]

More racists!


Moody's says U.S. needs to find more deficit cuts; status could be threatened i

Ratings agency Moody's repeated a warning on Monday it could downgrade the United States before 2013 if the fiscal or economic outlook weakens significantly, but said it saw the potential for a new debt agreement in Washington to cut the budget deficit before then.

Moody's said the United States "continues to exhibit the characteristics compatible with a Aaa rating" despite the expected further deterioration in the government's debt metrics in the next few years.

"Over time, this status could be threatened if further measures to address the long-term fiscal situation are not adopted, but it is early to conclude that such measures will not be forthcoming," Hess said.​