S&P Explains Credit Downgrade: "No Big Deal"

SOURCE: Fox News Sunday

OK, I'm NO financial expert by ANY stretch of the imagination, but the interviewee, Standard & Poors David Peers (head of the unit that grades investments) says the downgrade of the US, from AAA to AA+, isn't that big of a deal. He also says he can't predict what the markets will do in response to the downgrade, which makes me think he's as clueless as Greenspan who says the US CAN'T default because they can always print more money.

Considering the fact that global markets are taking a nosedive in response to the downgrade, (see the ATS Thread, "Jerusalem Stock Exchange Suspended After 6% Drop,) does this guy have a fracking clue? Do ANY of them know what's in store for us?

Like I said, I'm no financial wiz; please be gentle.

I don't have much financial wisdom either, but I'm not worried about it. I mean, AA+ is still pretty good, and better than a lot of the world. As for what will happen, I think the market will flux a bit, but stabilize eventually

Sure, AAA to AA doesn't seem like a big deal, but it's still a 'negative' attribute being laid against us.

There is no dodging that fact.

I saw CNN talking about this earlier, they said something like.......

Hear why this downgrade could actually put money in your pockets.

Hah, what a load of crap. They're just trying to play it down to catch the elephant falling from the sky that is market confidence. This is a huge deal as it shows the world that the us is not as capable as we make ourselves out to be. This downgrade will destroy market confidence and it will get the whole world thinking about removing the dollar as the worlds reserve currency. If this happens, then well see the overnight demolition of the value of the dollar through massive, rapid inflation.

Originally posted by DarkSarcasm
I saw CNN talking about this earlier, they said something like.......

Hear why this downgrade could actually put money in your pockets.

Hah, what a load of crap. They're just trying to play it down to catch the elephant falling from the sky that is market confidence. This is a huge deal as it shows the world that the us is not as capable as we make ourselves out to be. This downgrade will destroy market confidence and it will get the whole world thinking about removing the dollar as the worlds reserve currency. If this happens, then well see the overnight demolition of the value of the dollar through massive, rapid inflation.

"Never let a crisis go to waste." Now where have I heard that before?

I'm SO glad I have weaponry that will allow me to feed my family when TSHTF. All of this fake money BS is just that: FAKE!

As a Christian, I don't wish hard times on anyone; but I sincerely hope that these Wall Street a-holes can eat their derivatives and fiat currency because they won't be getting any of my deer jerky or homegrown tomatoes.

Hey ya'll, I'm off to bed. If you think it's worthy, keep the thread alive for me until I wake up.

Peace ATS,

Nighty

reply to post by OldCorp


I read a very interesing little write up in the Wall Street Journal, thought this would be a good place for it.

The downgrade hinged upon one phone call.

While congressional offices were busy studying the report, an official from the rating firm Standard & Poor's quietly called to ask for details of the underlying projections.

Four days later, based in part on that discussion, the rating firm announced a decision to downgrade America's debt—an unprecedented event in U.S. history—a move that is as controversial as it is potentially damaging to financial markets.

The information S&P gathered that day led it to overestimate future deficits by $2 trillion, a fact the Obama administration has called a reckless mistake. That phone call wasn't the reason S&P cut America's debt rating. But it was part of a chain of events, including also a stock-market plunge and an emergency Oval Office meeting, which could have serious and lasting consequences for America's standing in the world, the Obama presidency and the reputation of S&P. online.wsj.com...

On Tuesday, President Barack Obama signed the debt-ceiling deal into law. The next day,
Treasury Department assistant secretary for financial markets Mary Miller and other officials
met with a team of S&P analysts to discuss the agreement.

Treasury officials explained to members of the "credit team" from S&P how the deficit cuts
and future spending reductions would work.


Ms. Miller, a debt-market expert and financial analyst who spent 26 years at T. Rowe Price Group Inc., is a key part of the White House's economic team even though she is relatively unknown outside of the administration. She helped delay a default on the U.S. debt for as long as possible as talks dragged on and was recently nominated for a senior position at Treasury to reflect her rising stature.

Her second-floor office is directly below that of Treasury Secretary Timothy Geithner, with a view overlooking the White House. online.wsj.com...

So the S&P gathered faulty information from the White House, and set of a chain of events.

Am I the only one who is wondering why the U.S. only?

What about Japan, seriously. If any country should be downgraded, it should be Japan.

And Europe next

reply to post by burntheships


A two trillion dollar mistake? Was it a mistake, or did Obama purposely lead S&P to believe the debt was that much larger in order to have an outside power help him in his efforts to destroy this nation?

NOTHING Obama has done has turned out to be a benefit for the US. EVERYTHING the man touches turns to chit; the opposite of the Midas Touch. I seriously have to wonder if it wasn't all done on purpose to destroy the Republic so he could replace it with his Socialist utopia, manned by his cult of Chairman Mao loving, red book waving, Pinko thugs.

Originally posted by OldCorp
reply to post by burntheships

 

A two trillion dollar mistake? Was it a mistake, or did Obama purposely lead S&P to believe the debt was that much larger in order to have an outside power help him in his efforts to destroy this nation?

Yes, exactly. Why is this news not all over the headlines?

Obama, check. Geithner, check. Mary Miller, check. Goldman Sachs, check.

This was back on the 5th, right before the news of the downgrade. Think they knew something?
Tyler Durden on Goldman Sachs:

Goldman's Jan Hatzius has just killed his outlook for the remainder of the year, said there is a 33% chance of a recession and is now looking forward to some QE3 announcement next week. www.zerohedge.com...

Hatzius:

"As foreshadowed in recent publications, we have lowered our US real GDP growth forecast to 2% (annualized) through 2012Q1 and 2½% thereafter. We now see the unemployment rate edging up to 9¼% by the end of 2012, and see a one-in-three risk of renewed recession. On the monetary policy side, we expect no rate hikes or changes in the size of the Fed's balance sheet until 2013 or later; moreover, we now expect the FOMC to provide more guidance about the future size of its balance sheet at next week’s meeting."

Downgrade notes here : ransquawk.com...

Originally posted by burntheships

Originally posted by OldCorp
reply to post by burntheships

 

A two trillion dollar mistake? Was it a mistake, or did Obama purposely lead S&P to believe the debt was that much larger in order to have an outside power help him in his efforts to destroy this nation?

Yes, exactly. Why is this news not all over the headlines?

Obama, check. Geithner, check. Mary Miller, check. Goldman Sachs, check.

This was back on the 5th, right before the news of the downgrade. Think they knew something?
Tyler Durden on Goldman Sachs:

Guess what else Tyler Durden said...

Only after disaster can we be resurrected. SOURCE

Same guy?

Originally posted by OldCorp

Originally posted by burntheships

Originally posted by OldCorp
reply to post by burntheships

 

A two trillion dollar mistake? Was it a mistake, or did Obama purposely lead S&P to believe the debt was that much larger in order to have an outside power help him in his efforts to destroy this nation?

Yes, exactly. Why is this news not all over the headlines?

Obama, check. Geithner, check. Mary Miller, check. Goldman Sachs, check.

This was back on the 5th, right before the news of the downgrade. Think they knew something?
Tyler Durden on Goldman Sachs:

Guess what else Tyler Durden said...

Only after disaster can we be resurrected. SOURCE

Same guy?

That would be him.

reply to post by OldCorp



Well actually in reference to Durden, same name, different idenity.
en.wikipedia.org...


Now, about some news....

Senate Banking Committee probing S&P downgrade -Reuters

www.streetinsider.com...