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Fitch reaffirms United States' top-notch rating - Aug. 16, 2011
Oh Man! This is going to floor Bachmann. She was praying for another downgrade. Oh well, i guess the headaches will be coming on stronger now....Sorry Michelle...
Two out of three ain't bad!
Fitch reaffirms United States' top-notch rating - Aug. 16, 2011
Oh Man! This is going to floor Bachmann. She was praying for another downgrade. Oh well, i guess the headaches will be coming on stronger now....Sorry Michelle...
This was an interesting paragraph in that link you provided.
Fitch did add a caveat, however. It would likely revise its outlook on the U.S. rating to negative from stable if the congressional committee charged with proposing at least $1.2 trillion in deficit reduction fails to reach agreement, or if the economic recovery proves weaker than expected. That means there would be a greater than 50% chance that Fitch would downgrade the country within two years.
The Fitch rating agency said it expects Congress will eventually raise the "debt ceiling," making the risk of a default on U.S. debts "extremely low." Back in August 2011, political squabbling in Congress over raising the legal borrowing limit prompted the rival S&P agency to downgrade the U.S. credit rating one notch from its previous top level. Fitch is making it clear it could consider a downgrade if Congressional action is stalled by renewed bickering. Fitch called the debt ceiling an "ineffective and potentially dangerous" mechanism for controlling government spending.
Investment advisor Frank Reilly of Reilly Financial Advisors said the political fight is likely to go "down to the last minute" which has damaged consumer and investor confidence. He said the political uncertainties means businesses are reluctant to make investments and hire people. However, once the political squabbling is over, Reilly thinks the U.S. economy is poised to grow more quickly, an outlook that is in line with economic reports published Tuesday.
The Commerce Department said U.S. retail sales rose half-a-percent in December, which is more than first estimated. Economists watch retail sales closely because consumer demand drives most U.S. economic activity. A survey by the Gallup organization showed Americans grew a bit less pessimistic about the economy last week, but remain concerned about financial issues.
A separate measure of inflation at the wholesale level shows prices declining slightly for the third month in a row. Relatively tame inflation means the U.S. central bank can continue its efforts to stimulate the economy by keeping interest rates at ultra-low levels. If inflation were to rise sharply, the Federal Reserve would likely raise interest rates to cool the economy.
Credit Rating Agency Warns Washington
Ratings are done on a curve. All AAA means is that the US is among the least screwed up nations or as it is often put the US is the cleanest dirty shirt out there. That is not the same as saying the bonds are any good but only that CDS premiums are low.Fitch is a bullshit ratings agency then. Anyone who gives the US a triple A rating is doing so because they are purposefully being dishonest or they are plain ignorant.
