PDA

View Full Version : Why S&P down graded US



BigTip
9/23/2011, 04:55 PM
I've gotten this as an email two times now. I have shown it to several people. They all react the same, "OMG. We need to do something."

I tried to verify on Snopes and FactorFiction.com, but I couldn't find it on either. So I just checked the figures stated myself by Googling. The stated figures are all very close to the amounts I found.

It's very interesting so I thought I would pass it along so everyone will be able to realize what we are facing.



Why S&P Downgraded the US:

U.S. Tax revenue: $2,170,000,000,000
Federal budget: $3,820,000,000,000
New debt: $ 1,650,000,000,000
National debt: $14,271,000,000,000
Recent [April] budget cut: $ 38,500,000,000

Let’s remove 8 zeros and pretend it’s a household budget:
Annual family income: $21,700
Money the family spent: $38,200
New debt on the credit card: $16,500
Outstanding balance on the credit card: $142,710
Budget cuts: $385

CrimsonCream
9/23/2011, 05:44 PM
Yes, I had seen this before.

It is totally incomprehensible why Obama persists in wanting to add to the deficit.

Is it because he wants to bankrupt the Country and remake it into a Socialistic State?

diverdog
9/23/2011, 06:06 PM
I've gotten this as an email two times now. I have shown it to several people. They all react the same, "OMG. We need to do something."

I tried to verify on Snopes and FactorFiction.com, but I couldn't find it on either. So I just checked the figures stated myself by Googling. The stated figures are all very close to the amounts I found.

It's very interesting so I thought I would pass it along so everyone will be able to realize what we are facing.



Why S&P Downgraded the US:

U.S. Tax revenue: $2,170,000,000,000
Federal budget: $3,820,000,000,000
New debt: $ 1,650,000,000,000
National debt: $14,271,000,000,000
Recent [April] budget cut: $ 38,500,000,000

Let’s remove 8 zeros and pretend it’s a household budget:
Annual family income: $21,700
Money the family spent: $38,200
New debt on the credit card: $16,500
Outstanding balance on the credit card: $142,710
Budget cuts: $385

The budget numbers look right and the S&P is full of ****.

soonercruiser
9/25/2011, 09:29 PM
Attack the messenger!
:chargrined:

diverdog
9/25/2011, 10:11 PM
Attack the messenger!
:chargrined:

Cruiser:

Let’s review the record of the S&P before it downgraded the US. On October 25, 2010, S&P announced it was holding its rating of the United States steady at triple-A with a stable outlook for the typical rating horizon of three to five years. Nonetheless, on April 18, 2011, Standard and Poor’s warned that if policy makers could not reach a budgetary agreement and implement changes by 2013, then the resulting United States fiscal policy would be meaningfully weaker than those of its triple-A peers. Eighty-seven days later, on July 14, Standard & Poor’s placed the U.S. on negative watch and stated that there was a 50 percent chance that the U.S. would have its rating lowered in the next 90 days. On August 5, the rating of the United States was, indeed, lowered to double-A plus. In other words, over the course of 284 days, S&P changed its position on a matter of exceptional gravity 4 different times.

Let me ask you had anything truly changed as regards the fundamental strength of the U.S. economy in those 284 days to suggest that US could not honor its scheduled debt payments?

The S&P has no credibility....none what so ever.

BU BEAR
9/26/2011, 12:42 PM
The only thing that irks me about the downgrade is the fact that ratings agencies are typically behind the curve as it relates to credit events. They were behind on recognizing the worthlessness of Sub-prime mortgage securities, they were behind on Enron's insolvency, and they did not downgrade the U.S. government's credit rating quickly or harshly enough. Not only is spending out of control, but there is insufficient political will in Washington to cut/reform the entitlement programs that represent between $60-$100 Trillion in unfunded liabilities or to get America working (read: cut restrictions and regulations to allow our energy industry to put people to work) which would simultaneously increase government receipts, increase personal income, decrease the unemployment rate, and ease the burdens on entitlement programs that are linked to pre-retirement unemployment.