S&P credit downgrade of US

Talk about a non-event, the downgrade has had zero visible impact. What's the lowest interest rate the US has *ever* paid on 10 year bonds? 1.85% in 1941. Today? 1.86%. Why anyone would pay attention to the fools at S&P after their major contributions to the real estate bubble and collapse is beyond me. I believe their move to downgrade was political, that it had nothing to do with the actual financial health of the US government.
 
kurtdillard said:
Talk about a non-event, the downgrade has had zero visible impact. What's the lowest interest rate the US has *ever* paid on 10 year bonds? 1.85% in 1941. Today? 1.86%. Why anyone would pay attention to the fools at S&P after their major contributions to the real estate bubble and collapse is beyond me. I believe their move to downgrade was political, that it had nothing to do with the actual financial health of the US government.
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I think it had more to do with a vocal but thankfully powerless group of morons threatening to force a default which is would be a legitimate concern.
 
Interest rate is down to 1.77 according to Paul Krugman: http://nyti.ms/ovrLkE.

Yes, there are legitimate reasons to worry about what's happening in DC due to the insane political fights between the tea party, dems, and repubs but I don't think that's justification for downgrading. S&P had all sorts of data and complex math to support their move, but when more competent analysts pointed out that their math included a couple trillion dollars in errors they simply dropped all the figures and asserted they would downgrade anyway. Combine that lack of competence with math and S&P's flagrantly corrupt practices that led to the real estate bubble and I conclude that their opinions are worthless. Not that have much more respect for Moody's or any of the other ratings agencies in the US either.
 
kurtdillard said:
Interest rate is down to 1.77 according to Paul Krugman: http://nyti.ms/ovrLkE.

Yes, there are legitimate reasons to worry about what's happening in DC due to the insane political fights between the tea party, dems, and repubs but I don't think that's justification for downgrading. S&P had all sorts of data and complex math to support their move, but when more competent analysts pointed out that their math included a couple trillion dollars in errors they simply dropped all the figures and asserted they would downgrade anyway. Combine that lack of competence with math and S&P's flagrantly corrupt practices that led to the real estate bubble and I conclude that their opinions are worthless. Not that have much more respect for Moody's or any of the other ratings agencies in the US either.
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guys.....with all due respect, maybe the downgrade came because the govt. is running a 1.5 trillion annual budget deficit. how could anybody not be concerned about that? maybe they're concerned that we have upwards of 70 to 80 trillion in unfunded liabilities? maybe they're concerned that the fed has 3 trillion in liabilities on its balance sheet? maybe they're concerned that the US economy will grow at a maximum of say 2-2.5% this year? or how about the fact that the US is the world's largest debtor nation and that half of our debt is owned by foreigners.

no it couldn't possibly be any of those reasons. it must be political.

inflation is here as basic necessities and food costs are rising due to federal reserve money printing. you can say goodbye to the average american's standard of living.

Rising food prices hit consumers at grocery checkout
http://www.sun-sentinel.com/business/pb-food-prices-20110919,0,1287669.story

Families struggle to provide meals amid rising food costs, shrinking budgets
http://www.knoxnews.com/news/2011/sep/25/a-growing-hunger/

Consumers, restaurateurs feel pinch of rising food prices
http://www.lvrj.com/taste/consumers-restaurateurs-feel-pinch-of-rising-food-prices-129784948.html

Food Costs Rising as Coke, Chipotle Pass on Commodity Gains
http://www.bloomberg.com/news/2011-...oke-chipotle-pass-on-commodity-increases.html

McDonald's warns of higher food inflation
http://www.reuters.com/article/2011/04/21/mcdonalds-idUSN2113482820110421

Costco reports strong Q3 results, says inflation is back
http://seattletimes.nwsource.com/html/businesstechnology/2015144387_costco26.html

The Fed may deny it, but Americans know that prices are rising. Inflation is back.
http://www.thedailybeast.com/newsweek/2011/05/01/sticker-shock.html
 
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