S&P head: Agency may downgrade U.S. again

S&P head: Agency may downgrade U.S. again

www.rawstory.com

The head of Standard & Poor's sovereign ratings said Sunday that the agency may downgrade the U.S. again.

"Given the economic and political situation in the U.S., which will we see, an upgrading back to AAA or further downgrades?" Fox News' Chris Wallace asked David Beers.

"We have a negative outlook on the rating and that means we think that the risk currently for the rating are to the downside," Beers said.

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It's a sad state of affairs when ratings companies have the power over world markets that they do.

"The key thing is, yes, entitlement reform is important because entitlement is the biggest -- are the biggest component of spending and they are the part of spending where the cost pressures are greatest," Beers replied.

I wonder why they are commenting on entitlement reform and not military spending?

www.rawstory.com
(visit the link for the full news article)

Ratings are overrated..

I guess it's a slap in the face of the USA and an awakening for the public but thats about it. The fact that the markets dropped before the announcement says enough, just like the bet against the USA before that.

Whatever happens from this point on is in the hands of the global banking elite.

Originally posted by Romekje
Ratings are overrated...

Quote of the month, easy.
And, thank you sir.

yup they are overrated to the investers that is, but even if investers dont take them seriously does not mean it wont have an effect on mainstreet.

A Feeling Of Entitlement

Originally posted by Iamonlyhuman
I wonder why they are commenting on entitlement reform and not military spending?

Probably because entitlement spending is more than double military spending, is growing at a much faster rate, the revenue streams intended to support it are shrinking rapidly, it's mandated by hard-to-change legislation and skews economic productivity in negative ways.

Wikipedia has an easy-to-read, comprehensive and well-sourced article on the subject:

Wikipedia: United States federal budget

The economic realities underlying entitlement spending and its potential effects on the federal budget, federal deficits, national debt and potential defaults do, objectively, demand the most attention.

That certainly doesn't mean military spending shouldn't be cut, and I would personally prefer to see everything cut, a lot. But does anyone listen to me? No, they don't listen. They just ignore poor Majic and keep on spending and spending.

But anyway, considering that even compared to bloated and excessive defense spending, entitlement spending is the proverbial elephant in the room, the greatest single threat to U.S. solvency and a natural target of concern for investment rating services focused on financial realities, it's not too surprising that Mr. Beers and S&P would bring it up.

Originally posted by CENSORED

yup they are overrated to the investers that is, but even if investers dont take them seriously does not mean it wont have an effect on mainstreet.

edit on 7-8-2011 by CENSORED because: (no reason given)

ratings going down just shows they finally have the balls to admit it and S&P can't keep the farce up anymore. Ofcourse it will have an effect on mainstreet but that effect was happening before the announcement already.

1 extra day of decline in the markets wont make the difference anymore, unless you were in the know and wanted to MAKE money from all this.

Poor little invester/daytrader who gets his info from "credible" rating companies got shafted bigtime.

Yeah mainstreet will really feel the blow. Instead of trading up theyre just gonna trade down, their game doesnt change.

...some folks may not know who s&p is or what they're about... so, here...

www.standardandpoors.com...

When they talk about cutting spending, they are talking about to the public or people. Thats why they never talk about cutting military budgets. With all the inflation they are causing they will never talk about a pay cut to them selves either.