S&P, Moody's Warn AGAIN On U.S. Credit Rating - But I Thought Geithner Swore Passionately On National TV That 'It Would NEVER Happen' - Busted! - Video
Editor's Note - Story was originally published in January 2011. Today's news of a ratings cut from S&P is hitting the markets, with the Naz down 2%.
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Extreme sense of deja vu with the fresh warning - don't Moody's and S&P realize that no one is paying attention in Washington.
Moody's last warned just 28 days ago, after the irresponsible Obama tax bill was not offset by any spending cuts, and S&P warned in August...
There will of course be very little mention of this latest warning in the financial media, but this is how sovereign bond routs begin. We already borrow 43 cents of every Federal dollar to make our bloated budget, and apparently Congress thinks that's not enough. They're aiming for 50 cents this time, suckers.
And Moody's and S&P, thankfully, are throwing up a roadblock, though Congress won't see it of course, until it's far too late.
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Now let's start the Tim Geithner show - His emphatic promise...
Video: Tim Geithner with Jake Tapper -- February 7, 2010
- “Absolutely not. And that will never happen to this country.”
- “When people were most worried about the stability of the world, they still found safety in the Treasuries and the dollar. That is a very, very important sign of basic confidence in our capacity as a country to work together to fix these problems.”
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Now, Ratigan nails him on his prediction...
Tim Geithner Making Predictions - U.S. Will Never Lose It's AAA Credit Rating!
Start watching at the 3:20 mark...
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Reaction to the warnings...
Shrugging Off U.S. Ratings Risks — For Now
http://blogs.wsj.com/source/2011/01/13/shrugging-off-us-ratings-risks-for-now/
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U.S. Downgrade Chatter: Bond Watchers Shrug
http://blogs.wsj.com/marketbeat/2011/01/13/us-downgrade-chatter-bond-watchers-shrug/
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While we face downgrades...
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Excerpt from a story I wrote last Fall...
The U.S. Bails Out Failed Industries, While China Buys The Rare Earth
Why not use a trillion of the Fed's QE to buy some global natural resources instead of treasuries. But that's not our style. We run deficits to bail and stimulate a deleveraging economy that will not revive, while China buys the globe.
We borrow money from our grandchildren to bailout banks, insurers, hedge funds, private-equity shops, car companies, states, unions, houseowners, new car buyers, new house buyers. Meanwhile China is using its surplus to buy every natural resource that's for sale, anywhere.
And not one word from Obama or anyone in Washington. We are so supremely fubar in the long run, exhibiting the mass insanity of all empires in decline. Fighting wars, spending massively, encouraging consumer debt, monetizing the national debt and destroying the greatest currency history has ever known - the once mighty U.S. Dollar.
This fund manager thinks it's already a done deal...
DailyBail
Updated with today's developments from S&P.
Reader Comments (6)
http://dailybail.com/home/moodys-threatens-to-cut-us-aaa-rating-on-tax-package.html
Moody's warned Monday that it could move a step closer to cutting the U.S. AAA rating if President Obama's tax and unemployment benefit package becomes law. The plan agreed to by President Obama and Republican leaders last week could push up debt levels, increasing the likelihood of a negative outlook on the United States rating in the coming two years, the ratings agency said.
http://blogs.wsj.com/marketbeat/2011/01/13/us-downgrade-chatter-bond-watchers-shrug/
Shrugging Off U.S. Ratings Risks — For Now
http://blogs.wsj.com/marketbeat/2011/01/13/moodys-sp-kinda-warn-usa-on-its-aaa/
http://www.cnbc.com/id/42643384
S&P Cuts U.S. Ratings Outlook to Negative
http://online.wsj.com/article/SB10001424052748704004004576270693061767996.html?mod=WSJ_hp_LEFTTopStories