The Tea Party downgrade

[briansd1]

[quote=jstoesz]Brian also, can you clear up my confusion? If they are being more accurate and transparent now, does that mean that our rating should have been downgraded. All we have to due is kick out our tea party, and we will be back in line with France and the UK?

[/quote]

S&P is an independent rating agency.

The Dodd-Frank bill curbs reliance on the rating agencies by removing reference to credit rating in statutes and by removing exemptions they previously enjoyed.

S&P’s formula is secret. But their 5 criteria are:
1) Political
2) Economy
3) Fiscal policy
4) Monetary policy
5) External Factors

If you assume that items 2 to 5 are superior in the USA as compared to Europe, then you can infer that S&P regards the political situation in USA as questionable in relation to the countries they rate as AAA.

You may agree with S&P or not, but they are entitled their opinions.

I believe the main concern at S&P is that, in America, there is a growing fringe of politicians who believe that we don’t need to pay for the spending that Congress already approved. That fringe want us to arbitrarily renege on the financial commitments Congress has already made.

[jstoesz]

KIBU, the treasury market doesn’t give a damn either.

If we were posting 5% growth in gdp, do you think the stock market would have sold on the s&p “news.”

The stock market is going for a rout because our gdp numbers are so bad and the bond vigilantes are having their way with the PIIGS (italy is now in this grouping it appears, hence the extra “I”). The global markets are melting down before the american ones, and not because of our downgrade.

The S&P is just a convenient story.

[jstoesz]

KIBU, the treasury market doesn’t give a damn either.

If we were posting 5% growth in gdp, do you think the stock market would have sold on the s&p “news.”

The stock market is going for a rout because our gdp numbers are so bad and the bond vigilantes are having their way with the PIIGS (italy is now in this grouping it appears, hence the extra “I”). The global markets are melting down before the american ones, and not because of our downgrade.

The S&P is just a convenient story.

[jstoesz]

KIBU, the treasury market doesn’t give a damn either.

If we were posting 5% growth in gdp, do you think the stock market would have sold on the s&p “news.”

The stock market is going for a rout because our gdp numbers are so bad and the bond vigilantes are having their way with the PIIGS (italy is now in this grouping it appears, hence the extra “I”). The global markets are melting down before the american ones, and not because of our downgrade.

The S&P is just a convenient story.

[jstoesz]

KIBU, the treasury market doesn’t give a damn either.

If we were posting 5% growth in gdp, do you think the stock market would have sold on the s&p “news.”

The stock market is going for a rout because our gdp numbers are so bad and the bond vigilantes are having their way with the PIIGS (italy is now in this grouping it appears, hence the extra “I”). The global markets are melting down before the american ones, and not because of our downgrade.

The S&P is just a convenient story.

[jstoesz]

KIBU, the treasury market doesn’t give a damn either.

If we were posting 5% growth in gdp, do you think the stock market would have sold on the s&p “news.”

The stock market is going for a rout because our gdp numbers are so bad and the bond vigilantes are having their way with the PIIGS (italy is now in this grouping it appears, hence the extra “I”). The global markets are melting down before the american ones, and not because of our downgrade.

The S&P is just a convenient story.

[KIBU]

Perhaps the treasury is still the last good place to hide.

Hopefully people learn a lesson and don’t take it for granted as well. If politics start to not give a damn about the treasury and do more show fights in their narrow and noisy budget fighting, treasury can go down the toilet with the dollars too.

Blindsided by politics, we attempted to solve one problem by creating bigger problems.

[KIBU]

Perhaps the treasury is still the last good place to hide.

Hopefully people learn a lesson and don’t take it for granted as well. If politics start to not give a damn about the treasury and do more show fights in their narrow and noisy budget fighting, treasury can go down the toilet with the dollars too.

Blindsided by politics, we attempted to solve one problem by creating bigger problems.

[KIBU]

Perhaps the treasury is still the last good place to hide.

Hopefully people learn a lesson and don’t take it for granted as well. If politics start to not give a damn about the treasury and do more show fights in their narrow and noisy budget fighting, treasury can go down the toilet with the dollars too.

Blindsided by politics, we attempted to solve one problem by creating bigger problems.

[KIBU]

Perhaps the treasury is still the last good place to hide.

Hopefully people learn a lesson and don’t take it for granted as well. If politics start to not give a damn about the treasury and do more show fights in their narrow and noisy budget fighting, treasury can go down the toilet with the dollars too.

Blindsided by politics, we attempted to solve one problem by creating bigger problems.

[KIBU]

Perhaps the treasury is still the last good place to hide.

Hopefully people learn a lesson and don’t take it for granted as well. If politics start to not give a damn about the treasury and do more show fights in their narrow and noisy budget fighting, treasury can go down the toilet with the dollars too.

Blindsided by politics, we attempted to solve one problem by creating bigger problems.

[SD Realtor]

I would agree that the moves in the market are much more about the economy and much less then the S&P ratings. Look at the GDP numbers and it is pretty easy to see how bad things are.

Funny how the current administration had a supermajority and did nothing for over 18 months. Of course it is not their fault, it is definitely the oppositions fault.

[SD Realtor]

I would agree that the moves in the market are much more about the economy and much less then the S&P ratings. Look at the GDP numbers and it is pretty easy to see how bad things are.

Funny how the current administration had a supermajority and did nothing for over 18 months. Of course it is not their fault, it is definitely the oppositions fault.

[SD Realtor]

I would agree that the moves in the market are much more about the economy and much less then the S&P ratings. Look at the GDP numbers and it is pretty easy to see how bad things are.

Funny how the current administration had a supermajority and did nothing for over 18 months. Of course it is not their fault, it is definitely the oppositions fault.

[SD Realtor]

I would agree that the moves in the market are much more about the economy and much less then the S&P ratings. Look at the GDP numbers and it is pretty easy to see how bad things are.

Funny how the current administration had a supermajority and did nothing for over 18 months. Of course it is not their fault, it is definitely the oppositions fault.

[Author]

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