Breaking news. S&P downgrades U.S. debt credit rating.

www.cbsnews.com/stories/2011/08/05/national/main20088944.shtml

http://www.nytimes.com/2011/08/06/busin ... by-sp.html

WASHINGTON – Standard & Poor’s removed the United States government from its list of risk-free borrowers on Friday night, citing concern about the rising burden of federal debt.

The rating on the country’s long-term debt was lowered one notch, from AAA to AA+, with a negative outlook.

Wow. Vice Lord nailed it hours ago.

S&P also cited dysfunctional policymaking in Washington as a factor in the downgrade. "The effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges."

http://money.cnn.com/2011/08/05/news/ec ... m?on.cnn=1

VLs post with the prediction. <!-- l --><a class="postlink-local" href=" www.285bound.com/Forums/viewtopic.php?f=6&t=13214 " onclick="window.open(this.href);return false;">viewtopic.php?f=6&t=13214<!-- l -->

CinnamonGirl wrote: downgrade. "The effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges."

In other words, Congress is full of erratic nutballs who might do ANYTHING.....I'm only surprised it took them this long to notice that.

CinnamonGirl wrote: www.cbsnews.com/stories/2011/08/05/national/main20088944.shtml

http://www.nytimes.com/2011/08/06/busin ... by-sp.html

WASHINGTON – Standard & Poor’s removed the United States government from its list of risk-free borrowers on Friday night, citing concern about the rising burden of federal debt.

The rating on the country’s long-term debt was lowered one notch, from AAA to AA+, with a negative outlook.

Ah..I broke the story 6 hours ago?
<!-- l --><a class="postlink-local" href=" 285bound.com/Forums/viewtopic.php?f=6&t=13214 " onclick="window.open(this.href);return false;">viewtopic.php?f=6&t=13214<!-- l -->

I think the short term problem may be that some mutual funds have a stipulation that there can only be AAA rated stocks in the fund. So those stocks will have to be sold. Short term the market will fall. And the Asian markets with open before US on Sunday night. The only thing I can say is at least they did it on a Friday to let it sink in. I hope that will help.

CinnamonGirl wrote: I think the short term problem may be that some mutual funds have a stipulation that there can only be AAA rated stocks in the fund. So those stocks will have to be sold. Short term the market will fall. And the Asian markets with open before US on Sunday night. The only thing I can say is at least they did it on a Friday to let it sink in. I hope that will help.

It's not stocks that will be affected by those rules, it will be U.S. Treasury securities. Huge numbers of these will be dumped, and there may not be buyers. Which means interest rates will skyrocket and it is going to cost the taxpayers billions, if not trillions, in extra interest on the debt. It may mean the debt is unpayable.

Which means that since the clowns in Congress wouldn't agree to a red cent in tax increases, we're moving towards the route to default or hyperinflation. I think some of them wanted that all along, personally.

Interest is going up.... for sure. And truthfully. It needs to just not like this.

What do ya know...the Tea Party set out to destroy this nation as we know it....and they accomplished that goal. Congratulations conservatives...you won. You took this country down. Something no one else has been able to do. Yep....you managed in a few short months to destroy what it has taken 200 years to build.