BREAKING: S&P downgrades U.S. credit for first time in history

Good thing we slapped together that debt deal, just in the nick of time to avoid a debt downgr…

Ah, forget it.

(Reuters) – The United States lost its top-notch AAA credit rating from Standard & Poor’s on Friday, in a dramatic reversal of fortune for the world’s largest economy.

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits.

U.S. Treasuries, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the UK, Germany, France or Canada.

The outlook on the new U.S. credit rating is negative, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months.

I don’t know – ‘double-A plus’ still sounds unjustified to me.



File this one under: “Major Friday Evening News Dump.”

Hat tip: JWF.

***UPDATE***

The Wall Street Journal has posted the S&P’s monster press release on the downgrade. Have fun reading that one. Should be an interesting opening bell on Wall Street on Monday.

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81 thoughts on “BREAKING: S&P downgrades U.S. credit for first time in history

  1. With the threat of an additional downgrade by S&P it looks like the POTUS’s chickens are coming home to roost.

  2. I hope he loses in 2012… That will not happen though if he gets away with murder again and cheats his way to the presidency without any challenge! Look what happened last election and no one in the supposed “media” or PRAVDA raised a red flag…. with ACORN campaigning for him registering illegals and dead people it’s pretty easy to get reelected!!!

  3. When the leader of the USA IGNORES the warnings then he needs to be replaced and will be. Michelle Bachman will be the next President ladies and gentleman!

  4. Another nail in this mans coffin. All you Repubs that voted for this crap can look over your shoulder for a primary competitor. Yeah that means you Mr. Ryan!

  5. After falsely rating all those mortgage bundles everyone should listen to what S&P has to say. lol

  6. If you think about it, we probably should have been demoted to a single “A” or less. We KNOW what the state of the economy is presently and be KNOW where it is headed. Watch what happens if 2012 elections don’t come out the way we want/need them to. We’ll be “B” credit.

  7. In reading through ‘S&P’s monster press release’ [linked above]…it’s interesting that they compare the US with four of it’s peers:

    Canada
    France
    Germany
    UK

    In it’s comparison, it says that it expects the debt to GDP ratio in these four countries to decline…but has no such expectation for the United States.

    What do these four countries have that the US doesn’t have?
    …..A conservative as their CEO.

  8. Well, barrackk obbamma has achieved his goal of going down in history,
    as the president in charge of this great country when we were down graded for the first time in history.
    The silver lining in this cloud is there is NO WAY the lib’s can deny their policy’s caused it.
    WE ARE NOW THE FIRST GLOBAL SUPER POWER TO GO ON WELFARE!
    HOW’S THAT FEEL AMERICA????????????????????/

  9. Uncanny for this to come out directly following a huge selloff in the market. It is kind of “chicken or the egg” now… Did the market plunge spark the already brewing downgrade announcement, or was there some insider trading-people in the market who knew this was happening on Friday and dumped their shares on the market beforehand? One might never know.

    At the end of the day, the spin will be that those extremist Republicans were too hard to negotiate with. And if they would have just been able to swallow their pride and put “revenues” on the table, we wouldn’t be in this mess. Dark my words, that will be their angle. There will be an even bigger push to raise our taxes. Insanity.

  10. We were laughing all day yesterday at our house. Today, we are not.

    Do you good folks feel like this? It’s tough to laugh in the midst of tragedy.
    It feels inappropriate.

    9:30 AM Monday morning. Automatic sell orders will be set up this weekend and ready to rumble and tumble. There will be trailing stops set up all across the fruited plain. Millions of investors will be flocking to cash and those AA+ treasuries. I wouldn’t be surprised if there was a mini-run on some banks by certain sectors of the population. We pulled out of the market months ago. We have less than one thousand dollars in the market at this time.

    O’ has taken our beloved country to his favorite barber and told them to take a little greatness off the top, a lot of greatness off the sides and razor cut 3/4 the greatness off the back. Now we look like freaks…made in the image of this fascist wannabe. As stocks go down, and as tempers flare…I look, I squint, I strain my eyes, my ears, and my brain trying to find the silver-lining to this debacle known as the O’ administration.

    Here’s what I conclude. The left has overstepped and have done the 180 degree splits. Some went off a cliff, while others are spread eagle in a position they can’t rise from. Their scrotums are smashed to the floor, and a giant anvil, from the once slumbering giant, us, is falling on all of these, even now. It is going to smash them into oblivion. O’ has accelerated the wake-up call that we as a nation have been needing. It’s a skin bracer slap across the face, and we are going to pass that slap right along to those who deserve it.

    We didn’t EF it up! They did! I feel like I think I’d feel if my kids were abused by a stranger. Like my house was broken into while I was off having fun. Part of me wants to cry and part of me wants to lash out and cause justice to be visited on those responsible.

    At this moment though, I can’t find that part that wants to laugh.

  11. If we succeed in removing Obama from the WH in 2012, he’ll still need to assuage his “power” addiction, e.g., head of UN? Just a thought. If so, our downgraded social and economic situation would be a plus for him…so maybe he’s not too worried. His new ‘home’ may be in Kenya; it’s already at a level that needs some “hope and change.’ It would be prudent for conservative media to watch how he handles his campaign finances: Obama + $$$. Hint.

  12. The only way to get our AAA rating back is to put the confidence back in the hearts and minds of the world and that means getting rid of our version of Robert Mugabe & the demonrats!!!!!

  13. Moodys and S&P’s relationship with the US government has been poor since the introduction of the Dodd Frank legislation.

    The problem stems from the fact that ratings agencies knowingly rated junk mortgage bundles as AAA. When the justice dept dragged the ratings agencies to court they said ‘ratings are just opinions’. The Dodd Frank bill would hold them accountable for their ratings but S&P and Moodys wanted to continue to give ratings without any liability. They spent LOTS of lobbying money to try to fix this along with threats of downgrading the us treasury bonds.

  14. So all the Sunday morning shows this weekend will feature anchors and WH propaganda machine of professional politicians , lecturing us lowlife peasants that the S&P downgrade is a good thing , right ?

  15. Just like when Kennedy got his McNugget shot off, you can ask yourself where you were when America’s credit rating was officially rated as “shot”. This is historic. The most historic president in history has historically destroyed America’s credit rating, doing in 3 years what the rest of his party couldn’t do in 200. And yet, if asked, predictably, he’d claim this is the fault of those wacally wepublians for not letting him spend our non-existent money like a sorority whore on an all night bender. Too many people are too blind or cowardly to call a spade a spade, but I’m not one of those people: Obama is NOT particularly intelligent. He’s too stupid to know that there are plenty of historical examples of what happens when you run national economies into hyperinflation (such as in 20th century Germany). He’s too stupid to know that the saying “you have to spend money, to make money” doesn’t apply to government. He’s too stupid to realize that when you’re running low on money, you don’t get more by spending more. To him, its all funny money; figures on paper or monitors. Money he didn’t work for/earn means absolutely diddly-bupkis to him, and spending it means even less. As a child, apparently, his negligent parents (a couple of commie scumbags) failed to teach him something as fundamental as the value of a dollar.

  16. Oh, come on, people. You knew ‘spreading the wealth’ wasn’t the objective. It was ‘spread the wealth until there isn’t anything left but abject poverty’.
    Try to keep up.

    Paging Debbie Wasserman Test.

    1. Willard Cleon Skousen (January 20, 1913 – January 9, 2006) was an American Mormon author and conservative political commentator. Skousen was an anti-communist supporter of the John Birch Society, whose controversial works involved a wide range of subjects including the Six-Day War, Mormon eschatology, New World Order conspiracies, and even parenting. His most popular works are The 5,000 Year Leap and The Naked Communist. In 2008, political commentator and Mormon media personality GLENN BECK began recommending Skousen’s works, sparking new interest in his ideas and publications.

      http://www.ovguide.com/cleon-skousen-9202a8c04000641f8000000000af0310#

  17. The biggest surprise was that we were not downgraded even worse. Just another notch for our muslim prez for the complete destruction of this country.

  18. Yeah everyone — How’s Boehner’s Debt Deal working for you bunky? D.C. is not only spreading the wealth – but, also spreading out the cost of all the unsustainable debt!

  19. A Downgrade is a direct reflection of Obama’s redistribution Policy. It was a belated birthday present for LIAR Obama. Will somebody take the Nuclear Codes from him.

  20. I, like many others, used to liken Obama to Caesar, but I was wrong. He is not Caesar, but Brutus: he did not come here to praise America. He came here to bury it.

    1. When dear leader got elected, my mother in law (who I adore) was so happy, and she said the historical thing too. I said, “yeah, Hitler was historic and we know how well that turned out.”

  21. Ron Paul called it well, and I rarely agree with him. Default was the only thing that would have forced politicians to do the right thing, and I suspect they would have even screwed that up.

  22. Obama could not be happier. His plan is unfolding just as intended. I am still stunned that 56 million people fell for this fraud. The ignorance of the American electorate is astonishing really

      1. It depends on who you ask and what the questions are, if you ask the people on Public Assistance, that entire group will vote for LIAR Obama again because ,” Money for nothing and the chicks are free”

      2. It depends on who you ask and what the questions are, if you ask the people on Public Assistance, that entire group will vote for LIAR Obama again because ,” Money for nothing and the chicks are free”

      3. Remember, that’s 40 percent of those who were polled. No one asked me, and I’m guessing no one asked you, either. If you walk into a room with 40 wolves and 60 rabbits (all in cages) and ask them, “Meat or Vegetarian tonight?”, 40% will invariably say “Meat”.

        1. They didn’t ask you because your not part of the Media, your not mentaly challenged, your not a shallow thinker, nor are you a weak minded Liberal that says, I love you barack know matter where you take me.

      4. I saw a bumper sticker the other day: “I supported Obama then, I support him now”. That was stuck on back of a “mini cooper”. Naturally, that ignoramus has his….it just sucks to be the rest of us…
        I’ve also been seeing bumper stickers: “I’m a liberal and proud of it”, there should be another line that says, “And I don’t care how much of an idiot that makes me”.
        If I can work up the courage I’d like to get my all time favorite bumpersticker:
        A picture of BO and it says, “DOES THIS ASS MAKE MY CAR LOOK BIG?”

  23. Several freaking people — West, Ryan, John Boehner, Bill O, CK, etc. — owe us an apology. This is exactly what us Tea Partiers were yelling about last week. No more compromise.

    1. I think Ryan, etc. knew this was coming and passed what they did to be able to say see we told you to pass our original bill instead of being blamed for this by not raising the ceiling. Now perhaps we can make a case to pass a bill that repeals this and passess cut, cap and balance as a solution to our credit rating. And pass it tomarrow.

    2. well rocknrolla, the reason i vote repubican, is so that they will NOT compromise………hence why i love the tea party, and libertarians, as they are the only ones who see compromise as the dems winning, not dems loosing a bit of what they wanted……….i want these people so mad at the tea party members of congress, that due to the tea party holding onto principle, that they will do like they did in Japan, start throwing chairs, cause that is the only thing they(dems) are good at………..they are 2yr old children throwing a hissy fit in the middle of walmart, thinking they will get their way…………this time(just as it has in the million umpteen other times) they got their way, may not be everything, but close enough. they will just wait till next time to get the rest…………vote for someone who will fight, not give in. if you are right, and they are wrong, and you give into them, then you are now wrong too……end of story.

    1. You know they (Bush tax cuts) expire Jan 2013. That should be prime low hanging fruit for whoever our nominee is during the elections. I’d run ads, “in just a few months Obama WILL raise your taxes if re-elected.”

      1. Due to the credit rating decrease, the narrative is going to completely change (as you’ve noticed, it started right after the debt ceiling agreement) to extremist tea party did not want to increase taxes and look what happens! Tax cuts will not longer be an issue that will be favorable with the majority of the uninformed or idiot population. The administration out played the pansy Republicans again….

        1. Yeah, because those idiots rely on tax increases to keep the cash camel trotting along, right past the employment agency.

      2. Our candidate wouldn’t dare use an opportunity to get ahead; that would be common sense, and that sense has gone astray.

  24. Funny how this broke late Friday so as to be lost in all of the busy weekend lives of everyone. I swear I hate this administration.

    1. They probably had to wait until Obama was off the golf course, had a couple beers, and stuffed his face with the greasiest hamburger before putting the information out.

    2. They probably had to wait until Obama was off the golf course, had a couple beers, and stuffed his face with the greasiest hamburger before putting the information out.

    3. I think it broke late on a Friday to give the stock markets a chance to absorb. Monday might be an ugly day again in the market.

  25. If we didn’t already know that Obama will go down as the worst president in history, we now have evidence we can use forever to bash the democrat party. I wonder if the extra “A” was donated to Obama to use to fudge his college transcript? I can’t wait to hear the democrats spin this one.

  26. It really does’t matter in a communist government. What did you think would happen? “Keep smokin that hopeychange”

  27. Vast rightwing conspiracy.

    This didn’t even happen to Carter. O’ has claimed his spot in history in yet, another category, which all fall under the big umbrella of, big fat loser.

    Failure. Unprepared. Idiot. Ideologue. Fool. Misplaced priorities. Commie.

    OR

    Mussolini.

    1. That is EXACTLY how the UK press is covering it.

      Apparently this is down to those recklessly irresponsible ”Governments shouldn’t be able to spend more than they take in taxation and should not try to expand beyond their boundaries defined by the constitution” Tea Partiers for delaying the movement on the debt ceiling. The highly responsible and statesman like President Barrack ”WoooOOOhoooOOO – I got da credit cards of da world and his children and I’m hot to trot – LEEEEEEETTS SPEND!!” Obama had warned against such irresponsible actions by the Tea Party.

        1. well, not sure which is a hoax, our president, or the 14trillion we are in the hole, but either way, it isn’t a hoax, not when they threaten to do it if the government doesn’t reign in spending…………….time to watch the dow tanking all next week as a result………..can’t wait for the spin on all this for the next week, should be a rather interesting rollercoaster.

      1. sadly, alex said that it would be downgraded………..maybe listen once in awhile to him, not that he doesn’t have his moments of conspiracy, but on this, he called it.

        1. Sorry, Alex isn’t my cup of tea. I’ve tried to watch his stuff-way too out there for me. Al of the conservative pundits and commentators called it as well…adly, it was a no brainer, thanks to Obama.

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