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Thanks to the crazy tea bagging GOP, Fitch is threatening a downgrade. These idiots are going to kill this country. Pretty sad.

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Fitch Ratings put the US government's AAA credit rating on 'rating watch negative' Tuesday, saying that the standstill on the US debt ceiling negotiations risks undermining the effectiveness of the country's government and political institutions.

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Comment Preferences

    •  just now from guardian-uk (0+ / 0-)

      the Shutdown LIVEBLOG

      this one, for 'extraordinary measures;'

      then, the next one (scroll up) for rating downgrade;

      then, most recent (so far) re Cruz contributions so far received (and invested? buried?...)

      Addington's perpwalk? TRAILHEAD of accountability for Bush-2 Crimes. @Hugh: There is no Article II power which says the Executive can violate the Constitution.

      by greenbird on Tue Oct 15, 2013 at 02:22:02 PM PDT

      [ Parent ]

  •  About damn time (4+ / 0-)

    The United States does not negotiate with terrorists - that includes Republicans.

    by frsbdg on Tue Oct 15, 2013 at 02:02:17 PM PDT

    •  totally agree. (0+ / 0-)

      by the way... if they want to throw the 99% to the wolves..

      if they want the USA to be a third world country..

      if they want to pretend that as long as the fed keeps rates low the US economy is irrelevant (since they outsourced everything to China)..

      well..

      let the chips fall where they may.

  •  Are Members of Congress allowed to trade stock (3+ / 0-)
    Recommended by:
    PorridgeGun, Noodles, blue aardvark

    while in office?

    I can't remember - but if so, they have exclusive access to information right now that will make a huge impact on what the markets will do over the next couple of days.

    If they pass that information on to others in any way, or use it for themselves, can they be charged with insider trading? Has it happened before?

    Howard Dean will always be my president.

    by 4democracy on Tue Oct 15, 2013 at 02:03:45 PM PDT

  •  I was wondering when Wall Street would react. (6+ / 0-)

    They finally came to the conclusion that their monster is no longer under their control.

    If I ran this circus, things would be DIFFERENT!

    by CwV on Tue Oct 15, 2013 at 02:09:38 PM PDT

  •  The last fiasco... (3+ / 0-)
    Recommended by:
    Hey338Too, jfromga, blue aardvark

    Lowered our rating.  Was it boosted back up recently?

    “Socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires.” - John Steinbeck

    by RichM on Tue Oct 15, 2013 at 02:10:37 PM PDT

    •  Ah... (0+ / 0-)

      I see Moody's did this in July.  

      “Socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires.” - John Steinbeck

      by RichM on Tue Oct 15, 2013 at 02:11:33 PM PDT

      [ Parent ]

      •  Jumping the gun I see (1+ / 0-)
        Recommended by:
        PatriciaVa

        But then all of these ratings agencies are scum...not sure why they are taken seriously after 2008.

        •  Precisely. Rating Agencies are Clueless (1+ / 0-)
          Recommended by:
          blue aardvark

          Greece is a AAA credit until a few months when it's converted to junk.

          What does Fitch say about Germany?  AAA, stable outlook.

          Does anyone who understands monetary policy really believe that Germany's (can't print Euros) credit is better than the US's (can print Dollars)?

          Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project. www.hamiltonproject.org

          by PatriciaVa on Tue Oct 15, 2013 at 02:23:47 PM PDT

          [ Parent ]

  •  Keep an eye on the Asian markets, and the Futures (3+ / 0-)
    Recommended by:
    Hey338Too, forgore, TofG

    market.

    "Because I am a river to my people."

    by lordcopper on Tue Oct 15, 2013 at 02:14:06 PM PDT

  •  I looked on Fitch's website ... (10+ / 0-)

    ... and found the announcement, more at the link.

    Fitch Ratings has placed the United States of America's (U.S.) 'AAA' Long-term foreign and local currency Issuer Default Ratings (IDRs) on Rating Watch Negative (RWN). The ratings of all outstanding U.S. sovereign debt securities have also been placed on RWN, as has the U.S. Short-term foreign currency rating of 'F1+'. The Outlook on the Long-term ratings was previously Negative. The U.S. Country Ceiling has been affirmed at 'AAA'.

    KEY RATING DRIVERS
    In line with Fitch's previous statements, the RWN reflects the following key rating drivers and their relative weights:

    High
    - The U.S. authorities have not raised the federal debt ceiling in a timely manner before the Treasury exhausts extraordinary measures. The U.S. Treasury Secretary has said that extraordinary measures will be exhausted by 17 October, leaving cash reserves of just USD30bn. Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default.

    - Although the Treasury would still have limited capacity to make payments after 17 October it would be exposed to volatile revenue and expenditure flows. The Treasury may be unable to prioritise debt service, and it is unclear whether it even has the legal authority to do so. The U.S. risks being forced to incur widespread delays of payments to suppliers and employees, as well as social security payments to citizens - all of which would damage the perception of U.S. sovereign creditworthiness and the economy.

    - The prolonged negotiations over raising the debt ceiling (following the episode in August 2011) risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S. This "faith" is a key reason why the U.S. 'AAA' rating can tolerate a substantially higher level of public debt than other 'AAA' sovereigns.

    Medium
    - The repeated brinkmanship over raising the debt ceiling also dents confidence in the effectiveness of the U.S. government and political institutions, and in the coherence and credibility of economic policy. It will also have some detrimental effect on the U.S. economy.

    Looking through the bent backed tulips, To see how the other half lives, Looking through a glass onion - John Lennon and Paul McCartney

    by Hey338Too on Tue Oct 15, 2013 at 02:14:43 PM PDT

  •  At this point... (4+ / 0-)

    ...I think it might be a good thing if some rating firms downgrade America. The fence sitters may need one last shock to make them realize just how bad it has gotten.

    •  I would disagree... (3+ / 0-)
      Recommended by:
      ZedMont, bwintx, Catte Nappe

      ... it's one thing to warn, it's another thing to actually do it.  If they actually lower our rating it's going to cost us a lot of money - real money.

      Looking through the bent backed tulips, To see how the other half lives, Looking through a glass onion - John Lennon and Paul McCartney

      by Hey338Too on Tue Oct 15, 2013 at 02:19:25 PM PDT

      [ Parent ]

    •  the actual costs of downgrades (1+ / 0-)
      Recommended by:
      Hey338Too

      get buried though,  how many news stations have been repeating wha the last downgrade has cost us to date?  

    •  yes.. maybe Koch folded his hand too late (0+ / 0-)

      poor fellow...

      I  imagine the downgrade would be rather irritating..

      Wall Street needs to connect with Main Street. Since they downgraded Main Street with all their mean spirited legislation at state levels and the Feds too.. why I think Wall Street really needs to adjust.

      What needs to be good for the one.. needs to be good for the other once more..

      what was the phrase??

      oh yeah   "what's good for General Motors is good for America"..

      that's why they opened the door to China in the first place...so our workers would be employed in plants making cars for them... long before outsourcing ended that.

  •  Obama kills babies. (0+ / 0-)

    ..when he's not a Muslim terrorist. America needs to choose. today. Choose between the President of the United States, or the paranoid freak-a-zoids from hell.

    What is so unnerving about the candidacy of Sarah Palin is the degree to which she represents—and her supporters celebrate—the joyful marriage of confidence and ignorance. SAM HARRIS

    by Cpqemp on Tue Oct 15, 2013 at 02:22:53 PM PDT

  •  In the end this costs us - all - money (3+ / 0-)

    So, I see something like - "about time" and in the next mental breath I utter a curse.

    •  Let's face it (1+ / 0-)
      Recommended by:
      ItsSimpleSimon

      this current debacle is costing us money. The only difference is if it costs us a lot of money. The sooner this shit gets real and gets resolved, the better.

      The United States does not negotiate with terrorists - that includes Republicans.

      by frsbdg on Tue Oct 15, 2013 at 02:36:47 PM PDT

      [ Parent ]

    •  GOP doesn't care about the deficit or spending. (1+ / 0-)
      Recommended by:
      ItsSimpleSimon

      It wants to impose a right wing version of government.  If it could, it would agree to ending program after program and sending the money saved straight to higher interest payments, or for that matter, piling it in a field and burning it.

      "One faction of one party in one House of Congress in one branch of government doesn't get to shut down the entire government just to refight the results of an election."

      by Inland on Tue Oct 15, 2013 at 03:05:53 PM PDT

      [ Parent ]

      •  I beg to differ on what they'd do with extra $s (0+ / 0-)

        You say they would put them toward higher interest payments.

        Nonsense. That could be construed to suugest they really have an interest in eventually doing something like paying down the Federal debt.

        They don't. They never have.

        Anything saved would quickly get shoved into the MIC for use during the next contrived war / police action / exercise in American Exceptionalism (TM-Reagan Memorial and Saintly Convocation Enterprises).

        There has never, ever been a single moment in which the GOP has been sincere about the debt. Not once in over fifty years. We know this from their time in and out of full power.

        I do agree they would end program after program - as long as those programs benefited the poor, the aged, the indigent or anyone coming not from these shores.

        Funding to raid our national lands, pay mega-farms huge allowances and generally suck up to corporate whores would, of course, be greatly increased.

  •  Here's a germane quote from the RWN (3+ / 0-)
    Recommended by:
    Inland, TofG, Catte Nappe
    The prolonged negotiations over raising the debt ceiling (following the episode in August 2011) risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S. This "faith" is a key reason why the U.S. 'AAA' rating can tolerate a substantially higher level of public debt than other 'AAA' sovereigns.

    Medium
    - The repeated brinkmanship over raising the debt ceiling also dents confidence in the effectiveness of the U.S. government and political institutions, and in the coherence and credibility of economic policy. It will also have some detrimental effect on the U.S. economy.

    The mere use of the debt ceiling as a negotiating tool is sufficient to downgrade our debt. Just threatening is enough.

    I'm on a mission! http://www.dailykos.com/comments/1233352/51142428#c520 Testing the new site rules.

    by blue aardvark on Tue Oct 15, 2013 at 02:42:15 PM PDT

  •  In some recent days (0+ / 0-)

    1 month treasury yeilds were over triple that of 3 month treasury yields.

    http://www.treasury.gov/...

    "Victory means exit strategy, and it's important for the president to explain to us what the exit strategy is." - George W Bush

    by jfern on Tue Oct 15, 2013 at 03:16:06 PM PDT

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