S&P Downgrade is Imminent

[golfballs]

REPORT: US Government Prepares For Credit Downgrade From S&P

What do you think it will mean?

 

[fl0at]

REPORT: US Government Prepares For Credit Downgrade From S&P

What do you think it will mean?

That a fixed rate mortgage was definitely the way to go.

The other 2 of the big 3 still have us at AAA, though, right?

 

[NEO]

We have already been downgraded by China.

 

[NEO]

That a fixed rate mortgage was definitely the way to go.

The other 2 of the big 3 still have us at AAA, though, right?

China's already downgraded us.

Moody's has us on negative watch which means we are about to get down graded by them ... just face the facts.

Fitch has warned downgrades are on the horizon too.

 

[fl0at]

We have already been downgraded by China.

So you are saying we should invade China, IHB?

 

[NEO]

Oh but to your question ...what does that mean?

Well, Jp Morgan states it means are borrowing cost will increase by over 100 BILLION per year.

 

[golfballs]

I don't think it will be that much.

China can't say ****. they are AA-

 

[NEO]

I don't think it will be that much.

China can't say ****. they are AA-

China ain't borrowing from US.

We're borrowing from China.

Nobody cares the credit rating of the bank they GET the money from.

 

[NEO]

So you are saying we should invade China, IHB?

No.

not their fault we can run the largest economy in the world properly.

 

[golfballs]

Just wait and see how it affects rates.

 

[golfballs]

This is where it will break
S&P | Ratings Ratings Actions List | Americas

 

[golfballs]

Govt official: US expecting S&P downgrade - Political Punch

Officials reasons given will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited.

 

[NEO]

It will effect them.

It will change it from the top and then when the banks borrow from the feds it will change it again and then the end trickly down will be lending rates to businesses and consumers.

 

[golfballs]

raise taxes now and slip back into a recession. pick your poison.

 

[golfballs]

It will effect them.

It will change it from the top and then when the banks borrow from the feds it will change it again and then the end trickly down will be lending rates to businesses and consumers.

I understand how it works, and I'm telling you that it's not going to affect the rates that much.

 

[NEO]

Govt official: US expecting S&P downgrade - Political Punch

There was no larger deal.

Just tax hikes.

We are getting downgraded because the cuts weren't deep enough.

 

[golfballs]

yes, and that Republicans won't accept any higher taxes.

Regardless of what S&P says. The US is still the best debt out there. It will be reflected in the rates. Let the market show that, not some dickheads at S&P

 

[NEO]

I understand how it works, and I'm telling you that it's not going to affect the rates that much.

Jp Morgan disagrees.

Most analyst disagree.

My banker at Chase disagrees.

I'm sorry I am going with all of these guys over your opinion--not that your word isn't more valuable than JP Morgan.

 

[NEO]

U.S. Downgrade May Cost $100B a Year: JPMorgan - Bloomberg

 

[utgibbs]

We better get those Welfare Dads off the government teat...

 

[NEO]

We better get those Welfare Dads off the government teat...

Whether you're joking or not, you are correct in your statement.

We also need the other 50% of the population to start paying into the debt too.

 

[golfballs]

Jp Morgan disagrees.

Most analyst disagree.

My banker at Chase disagrees.

I'm sorry I am going with all of these guys over your opinion--not that your word isn't more valuable than JP Morgan.

JP Morgan does not disagree

The study showed just a slight increase in lending rates when countries lose their AAA rating. In May 1998, S&P knocked Belgium, Italy and Spain from AAA to AA. A week later, 10-year rates had barely budged. In some cases, rates actually fell. A week after S&P took Ireland's AAA rating away in March 2009, 10-year rates in that country fell 0.18 percentage points.
Analysts and bond traders are not convinced rates will rise much if the U.S. loses its AAA rating. Caughey-Forrest and others note the recent high demand — and the resulting falling yield — for Treasurys.
Global investors still consider U.S. debt one of the safest investments. Many mutual funds, money market funds and banks find U.S. debt so safe they hold Treasurys as a proxy for cash. And they've continued to do so, despite the threat of a debt default and a downgrade.

The Associated Press: Experts say US could still lose AAA debt rating

 

[golfballs]

I'm telling you. Investors can see clear as day the debt situation in the US. And what is their response?? They buy more. Look at the market for treasuries this past week.

 

[golfballs]

"A downgrade won't frighten foreign buyers away because this is the largest market and there's no other place to go,"

.

 

[NEO]

You ask a question and then state you know the answer.

Then why even ask the question guy?

What was the purpose of even starting the thread?

I gave you a link where JP Morgan states it would hurt the country.

I'm sorry we disagree.

I didn't start the thread with a question though. You did.