S&P Cuts U.S. Outlook to Negative on Fiscal Worry

[Hissyspit]

Source: Reuters

S&P cuts U.S. outlook to negative on fiscal worry
NEW YORK | Mon Apr 18, 2011 9:26am EDT

NEW YORK (Reuters) - Standard & Poor's on Monday downgraded the outlook for the United States to negative, saying it believes there's a risk U.S. policymakers may not reach agreement on how to address the country's long-term fiscal pressures.

Read more: http://mobile.reuters.com/article/idUSTRE73H2JT20110418?irpc=932

[rfranklin]

1. This is a political move...

and it's designed to help the Republicans with all their bullshit screeching about the deficit.

[dkf]

4. Isn't it the opposite? A warning not to mess with the debt ceiling?

[muriel_volestrangler]

6. It's a warning to get some agreement for the medium term passed

So not, I think, about the debt ceiling, which is short term, but about closing the gap between Obama's plan and the Ryan fantasy (my word, not theirs, you understand). They say they're neutral on which is better, but there has to be something agreed and passed.

Full S&P document here:

http://www.scribd.com/doc/53253528/outlook-to-negative-by-S-P-on-US-18april2011

[dkf]

10. Wow they really are inserting themselves into the longer term debate.

I guess if we don't pay employees and other things we can still cover interest payments in the debt?

[moondust]

17. Absolutely!

It (further) damages the credibility of S&P.

[mckara]

2. Or, Could Force Republicans to Raise Taxes

[MattSh]

13. Thank you...

Smartest comment so far...

[fredamae]

3. What B/S!

There is NO way the teapublicons will want to bear responsibility for a GLOBAL financial meltdown! They know they Absolutely Would.

How worried can they be anyway? They have All gone home for Easter Vaca. If this were a Real crises they would Still be there. So yes, this is just "politics and BS Media".

[livetohike]

8. Exactly right. A belated welcome to DU, too

:hi:

[fredamae]

15. Thanks!

[Rage for Order]

5. This is the same rating agency that said mortgage-backed securities were solid investments

Forgive me if I'm less than impressed by their forecasting skills

[crazylikafox]

7. Exactly. This is a purely political move. My guess: to force Congress to reduce entitlements.

S&P showed itself to be a criminal organization complicit in the Mortgage mess by falsifying bond & derivative credit ratings to increase their business. This is part of the Wall Street drive to force Congress to think it has to decimate entitlements to decrease the deficit. I'm curious to know who is really behing this move. The timing stinks to high heaven.

[neoralme]

9. This agency was taken over by the coporatists long ago, and is

now approximately worthless. The real trouble is we are in a situation where there is not enough educated informed base to revolt against the corporatists. They now have their walls built strongly enough that the only thing that will take them down is total dissolution of society. And that's coming.

[Patiod]

14. You beat me to it!

I was going to say the same thing.

[xchrom]

16. That tidbit should be worked into their 'downgrade'

You know, full disclosure and all that.

[Roy Rolling]

11. a Reversal of "Reaganomics"

Welcome to the first step in reversing the excesses that began in 1980 under Reagan. The markets are saying that the US policy of unrealistically low tax rates and ridiculously high war expenses are unsustainable. That's what it means.

When markets decline (even commodity oil prices are tanking, if you'll excuse the pun) they are saying "the party's over" ---it will be harder on "the wealthy" than the middle class.

[jwirr]

12. President Obama and the Democrats need to frame this right and

it can work for us. S&P does not say who they are talking to - us or them. We need to frame it so that it is THEM.