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US Credit Rating Cut by Egan-Jones ... Again

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posted on Sep, 14 2012 @ 03:38 PM
US Credit Rating Cut by Egan-Jones ... Again

Egan-Jones is a credit rating agency and they just cut the U.S. credit rating down to AA- form AA !!!

This is another blow to the economy ?

CNBC -- Friday, 14 Sep 2012 | 3:43 PM ET

Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality.

In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar.

In turn, this increases the cost of commodities, the firm said. ...

There is more than one credit agency.

Credit rating agency Standard & Poor's (S&P) downgraded its credit rating of the U.S. federal government from AAA (outstanding) to AA+ (excellent) on August 5, 2011.

This was the first time the government was given a rating below AAA. S&P had announced a negative outlook on the AAA rating in April 2011. The downgrade to AA+ occurred four days after the 112th United States Congress voted to raise the debt ceiling of the federal government by means of the Budget Control Act of 2011 on August 2, 2011.

The downgrade was criticized by the U.S. Treasury Department, both Democratic and Republican Party political figures, and many businessmen and economists.

Both Fitch Ratings and Moody's, designated like S&P as nationally recognized statistical rating organizations (NRSRO) by the U.S. Securities and Exchange Commission, retained the U.S.'s triple-A rating. Moody's, however, changed its outlook to negative on June 2, 2011 and Fitch changed its outlook to negative on November 28, 2011.


related recent thread:
Moody’s Text: To Downgrade US If No Deal To Cut Debt/GDP Ratio

posted on Sep, 14 2012 @ 03:58 PM
I was kind of waiting for this. Obviously not in a happy way, dreading it really. I somehow think from here on it's just going to be a real downward spiral. War devalues the currency because they have to print so much to keep up with the costs and then the debt from that lowers their credit rating which in turn devalues their currency even more so they have to print YET again more money.

Obviously I'm an economy noob so to speak but isn't that more or less the case right now?

posted on Sep, 14 2012 @ 03:59 PM
Well, I guess I'll have to get back to my budget debt/deficit board soon and correct some projected debt figures. They'll be higher if the interest pressure from lower credit ratings makes for higher rates. Oh goody....

The budget assumptions on Obama's 25 Trillion by 2022 are not considering anything but steady and smooth recovery...rather strong inflation isn't figured anywhere.

posted on Sep, 14 2012 @ 04:00 PM
Hope and change!

what a joke!

you better "hope" S&P doesnt "change" our rating downward after this....
edit on 14-9-2012 by camaro68ss because: (no reason given)

posted on Sep, 14 2012 @ 04:04 PM
pfft...they can suck it....oh you don't like american card is cut off..get a job loser...."oh wait -wait-wait_..."....screw that....

there is no one blessed into a way of life...we can raise one or lose one...we decide.....

To the idiots that thought you stupidity would be special...go swim toward Cuba....we need to cycle our targeting software......

You ae not going to make it is done...feel free to thank your multinational is their fault...cant control the we will........

Get used to it country boy have been does that taste btw?

posted on Sep, 14 2012 @ 04:09 PM
reply to post by Jeremiah65

Do you come with an interpreter?

posted on Sep, 14 2012 @ 11:19 PM
Somehow, I think most investors are going to be more concerned with the ratings given by the reputable credit rating agencies that are in the business of rating municipal bonds. Egan-Jones was founded in 1995, primarily rates junk bonds, and is under investigation by the SEC.

posted on Sep, 15 2012 @ 07:20 AM
reply to post by Swizzy existentialistic rant....sorry about that

I was venting!

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