Was S&P right on mortgage bonds or US credit rating?

Discussion in 'Politics' started by Salt Jones, Aug 5, 2011.

  1. Salt Jones
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    Salt Jones BANNED

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    Is the lowering of the U.S. credit rating as valid as the AAA credit rating for trillions of dollars in mortgage bonds?
     
  2. Trajan
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    Trajan conscientia mille testes

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    hey, they were imho one of the indicted co-conspirators of the whole mess.......well, not that anyone was indicted but you get the drift.
     
  3. Oddball
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    Oddball BANNED Supporting Member

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    What does the S&P credit rating have to do with anything, if the Fed still keeps interest rates artificially low anyways?
     
  4. Salt Jones
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    Salt Jones BANNED

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    I've read "House of Cards" and "13 Bankers", plus countless articles on mortgage bonds, tranches, CDOs, CDS, AIG and the rating agencies. I agree with you 100%.
     
  5. Trajan
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    Trajan conscientia mille testes

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    :eusa_shhh:
     
  6. Trajan
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    Trajan conscientia mille testes

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    frggin spell check, that was supposed to say UNindicted co-consp...but ya'll got the drift;)
     
  7. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says dey got it wrong...
    :eusa_eh:
    Rating downgrade: Did S&P get it right?
    August 7, 2011: A credit rating is an informed opinion. Nothing more. Nothing less.
    See also:

    S&P rating: How to get back to AAA
    August 8, 2011: President Obama and lawmakers should seize the opportunity to start making real changes to reduce the debt, budget expert Maya MacGuineas argues.
     
  8. Neotrotsky
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    Neotrotsky Council to Supreme Soviet

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    Some things they were dead on


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



    The decision by Standard & Poor's to downgrade the U.S. credit rating to "AA+" at once laments the possibility that cuts to entitlement programs will not materialize and the decreasing likelihood of new tax revenues. But it appears to give more weight to the need for more spending cuts, as it warns that a further credit rating downgrade is in the cards if the U.S. does not trim spending.

    In contrast, while the report indicates that new tax revenues would help mitigate the debt crisis, failing to find these revenues does not immediately put the U.S. at risk of another downgrade.

    Specifically, the report warns directly that a further downgrade to "AA" status could occur within the next two years if there is "less reduction in spending"
     
  9. iamwhatiseem
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    iamwhatiseem Gold Member

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    They had no choice if they wanted to do ANYTHING to even begin to restore their credibility after the criminal lack of truthfullness in the mortgage ponzi scheme.
     
  10. 8537
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    8537 Senior Member

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    The Fed doesn't need to keep it "artificially low". The market's pricing them at next-to-zero interest, virtually risk free.
     

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