S&P Credit Rating: It Could Get Worse

Here's the headline from S&P's full report:


United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And
Rising Debt Burden; Outlook Negative

Don't miss this (it could get worse):
The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.
A here's a very good reason to send serious conservatives to Congress and the White House in 2012:
More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.
Time to send some adults to D.C.

[emphases added]

Only the Tea Party Had a $4 Trillion Plan

6 comments:

  1. If you think this is bad, wait til Obamacare kicks in in 2013 which will make the current spending seem like pocket change in comparison. Can't wait til Bush on Steroids and Carter 2 interest rates kick in at 20 to 30 percent. I fear this is just the beginning of the end of America's economical prosperity as anyone with a brain knows neither party, especially after Boehner threw the Tea Party under the bus, is going to do anything to really cut the spending as this is the real reason why the downgrade occurred, not raising taxes like the libtards are saying. We're spending beyond our ability to pay and it's a mystery to the libs why our debt is being downgraded? The only real mystery is why it took so damn long. It should had been downgraded the moment BO, Reid, and Pelosi passed that evil monstrosity health care bill. Can they be that stupid or out of reality? I guess so and it's going to get a lot worse and all because of hope and change. Well the change sucks as BO is making history, all for the worse things: rise of evil, Islamic tyranny, pct increase of the national debt, downgrading of debt, Mexico's invasion especially the drug cartels, etc. Now the only hope I have is the country votes to put on some deodorant and rid this country of BO.

    ReplyDelete
  2. The debt is the real issue that must be addressed, not how much we can borrow to cover it.

    2012 can't come soon enough!

    ReplyDelete

Commenting here is a privilege, not a right. Comments that contain cursing or insults and those failing to add to the discussion will be summarily deleted.