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View Full Version : U.S. rating likely to be downgraded again: Merrill

Gerald
10-23-11, 03:01 PM
(Reuters) - The United States will likely suffer the loss of its triple-A credit rating from another major rating agency by the end of this year due to concerns over the deficit, Bank of America Merrill Lynch forecasts.The trigger would be a likely failure by Congress to agree on a credible long-term plan to cut the U.S. deficit, the bank said in a research note published on Friday.A second downgrade -- either from Moody's or Fitch -- would follow Standard & Poor's downgrade in August on concerns about the government's budget deficit and rising debt burden. A second loss of the country's top credit rating would be an additional blow to the sluggish U.S. economy, Merrill said."The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan" to cut the deficit, Merrill's North American economist, Ethan Harris, wrote in the report."Hence, we expect at least one credit downgrade in late November or early December when the super committee crashes," he added.The bipartisan congressional committee formed to address the deficit -- known as the "super committee" -- needs to break an impasse between Republicans and Democrats in order to reach a deal to reduce the U.S. deficit by at least $1.2 trillion by November 23.

http://www.reuters.com/article/2011/10/23/us-usa-rating-merrill-idUSTRE79M2J120111023


Note: Sun Oct 23, 2011
Jimbuna
10-23-11, 03:40 PM
Your thoughts and comments :DL
Gerald
10-23-11, 03:45 PM
Your thoughts and comments :DL Yes, :smug:
Jimbuna
10-23-11, 03:47 PM
Thought so :|\\
Gerald
10-23-11, 03:52 PM
Right, :arrgh!:
Jimbuna
10-23-11, 04:39 PM
Less cut and paste gives more credibility :|\\
Platapus
10-23-11, 04:48 PM
It is what he does. I don't understand it either. :nope:
August
10-23-11, 05:38 PM
At least it's not the New York Times this time...
Oberon
10-23-11, 06:42 PM
:hmmm: Yeah....
magicstix
10-23-11, 07:09 PM
Clearly this is all the Tea Party's fault for not allowing us to grow the deficit.
Gerald
10-23-11, 07:14 PM
It is what he does. I don't understand it either. :nope: It is enough to understand what is posted .... and you can read, that since others want to have fun at my expense, it is quite another...
Gerald
10-23-11, 07:19 PM
Less cut and paste gives more credibility :|\\ Everything is not about this, we have gone through earlier ... previously publisher, I can choose to make it easy or hard for me....and has nothing to do with credibility, rather different motives which only you can collateral.
Gerald
10-23-11, 07:20 PM
At least it's not the New York Times this time... :up:
mookiemookie
10-24-11, 07:27 AM
Clearly this is all the Tea Party's fault for not allowing us to grow the deficit.

It is the fault of political extremism on both sides and an unwillingness to work together. Both sides are guilty of pandering to the most extremes of the party.
CaptainHaplo
10-24-11, 08:12 AM
It is the fault of political extremism on both sides and an unwillingness to work together. Both sides are guilty of pandering to the most extremes of the party.

Its the fault of government spending money it doesn't have.
mookiemookie
10-24-11, 08:26 AM
Its the fault of government spending money it doesn't have.

More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

http://www.standardandpoors.com/ratings/articles/en/us/?assetID=1245316529563
CaptainHaplo
10-24-11, 08:32 AM
Yep - we agree mookie - the government spent too much - is spending too much - and the politicians of both sides refuse to truly address the problem.

While we may disagree on the solution - we agree its the fault of both sides that got us here.
soopaman2
10-24-11, 10:26 AM
Yep - we agree mookie - the government spent too much - is spending too much - and the politicians of both sides refuse to truly address the problem.

While we may disagree on the solution - we agree its the fault of both sides that got us here.


I will third this then.

It all comes down to one thing.

Greedy and self serving government. The system is faulty, not the ideologies.:)
STEED
10-24-11, 10:49 AM
Moody's has said they would have to downgrade the US if they see no improvement by the end of 2013. That was a few months back, no idea if they have changed from that point of view. As for Fitch not heard a thing from them.

http://en.wikipedia.org/wiki/List_of_countries_by_credit_rating