United States loses AAA credit rating from S&P

"The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. "

Re: United States loses AAA credit rating from S&P

#5

Post by cantbecool » Sat, Aug 06, 2011, 12:45 AM UTC

I wonder what would have happened if S&P dropped the rating during the trading day, and not after the markets closed. We probably would have seen another -500 point drop on the DJI.

Re: United States loses AAA credit rating from S&P

#6

Post by [deleted] » Sat, Aug 06, 2011, 12:46 AM UTC

[deleted]

Re: United States loses AAA credit rating from S&P

#7

Post by Getahobby » Sat, Aug 06, 2011, 12:47 AM UTC

fanboy123 wrote: post #4

from the press release: "The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. "

This really should be a call for both parties to start working together but it will most likely turbo charge the blame game.

Re: United States loses AAA credit rating from S&P

#8

Post by aculver » Sat, Aug 06, 2011, 12:47 AM UTC

fanboy123 wrote: post #3

kenjackson wrote: post #2

Has the US ever not had a AAA credit rating from S&P (until now)?

Has always had AAA rating since the start of sovereign ratings. Look out below.

.. and that was in 1918. So basically this is the first time in almost 100 years.

Re: United States loses AAA credit rating from S&P

#9

Post by winestock » Sat, Aug 06, 2011, 12:47 AM UTC

So it begins.

A quote: "The outlook on the new U.S. credit rating is negative, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months."

I.e., things are going to get a lot worse before they get worse.

Time to bring this back to a hacker's perspective. Is there any way to "hack" the system so as to get government finances to within commuting distance of sanity? Or have recent events already answered that question?

Re: United States loses AAA credit rating from S&P

#10

Post by fanboy123 » Sat, Aug 06, 2011, 12:49 AM UTC

cantbecool wrote: post #5

I wonder what would have happened if S&P dropped the rating during the trading day, and not after the markets closed. We probably would have seen another -500 point drop on the DJI.

They wait until late friday to make big changes to give the officaldom/industry a weekend to scramble/grab parachutes. They actually didnt release today until after the SPY stopped trading.