Personal Finance

S&P has put a ‘Negative’ Outlook on U.S. "AAA" credit rating

  • Last Updated:
  • Apr 18th, 2011 9:36 pm
7 replies
Deal Addict
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Sep 26, 2007
3960 posts
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SC
you know... it supposedly already did like 6-7 hours ago

plus we all saw it coming
"We don't have a soul... We are a soul. We have a body." ~C.S Lewis
Sr. Member
Aug 25, 2009
582 posts
143 upvotes
Too bad those ratings pretty much mean nothing

Wanted to buy AAA-rated subprime mortgages three years ago?

Still raking in my gold profits though
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Jan 27, 2007
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T.
Credit rating agencies in the US have no credibility after the financial collapse anyway. Inside Job proved that.
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May 31, 2007
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The There was a thread recently asking when their debt would be downgraded. And the warning is coming from S&P. They are credible with this call. You don't have to be a credit analyst to know that 1.5 trillion in debt is out of control. Result of too many corporate bailouts and printing money. Maybe they will hope inflation will devalue their debt?

This could even result in their dollar loosing status as the world's currency measure in commodities. Regardless, loans will be more expensive for government and consumers. Confidence levels will be lower. Just what they and the world needs right now.

China will take over and become the next big superstar.
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Mar 4, 2009
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Toronto
Jungle wrote: China will take over and become the next big superstar.

They have their own problems. I don't see a changing of the guard for quite some time. America is going through a tough spot but they can and most likely will recover imo.
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Jun 8, 2005
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dutchca wrote: Credit rating agencies in the US have no credibility after the financial collapse anyway. Inside Job proved that.

As you and plenty of other posters have said, S&P don't necessarily deserve our attention and I agree... On the other hand, this isn't a case of them going against the grain. Everyone was expecting this, and now the U.S.'s own credit rating agencies are starting to ring the bell.

I'm seriously considering buying a crapload of gold and silver in the next few weeks... and a few weeks ago I was on the other end of the spectrum.
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:) it took me 45 minutes to make this signature :(
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Jan 27, 2007
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I think the markets have already factored this news into trading over the last few months. Everyone knows the state the US Economy is in and there were rumblings about them reaching their debt cap level months ago.

S&P have tried to re-gain some credibility they have sorely lacked since the sub-prime debacle by coming out with this bombshell.

The governors at the Federal Reserve call the shots. The other rating agencies will probably follow suit shortly.

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