Experts- US could still lose AAA debt rating

[chill_wind]

MATTHEW CRAFT, AP Business Writers, PALLAVI GOGOI, AP Business Writers
Updated 04:38 p.m., Monday, August 1, 2011


NEW YORK (AP) — Even if Congress approves a deal to raise the federal government's debt ceiling, the U.S. could still lose its coveted AAA debt rating sometime in the next six months, largely because the proposed agreement does not cut enough spending.

The three main ratings agencies declined to comment Monday on the prospect of future downgrades. But the agencies, along with economists and analysts, have signaled that doubts about the nation's debt will persist.

The proposal crafted by Obama and congressional leaders cuts only about half that amount, which led at least one expert to suggest that S&P could still downgrade the rating as early as next month.

"The details (of the deal) don't look as pretty as the headlines," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott.

Ratings agencies probably won't look favorably on the fact that most of the spending cuts in the current plan won't be made until after 2013, LeBas said.

(more)

http://www.seattlepi.com/business/article/Experts-say-US-could-still-lose-AAA-debt-rating-1686494.php

[CreekDog]

1. that would be BS

Japan's debt level is higher than ours.

i didn't see them threatening this when banks were being bailed out or before we went to war.

[Cronus Protagonist]

2. S&P can hand back some of that cash if they rate us badly

Fuckers.

[badtoworse]

8. What cash?

[derby378]

3. Wheeeeeee!!

Obama caves in, the Dems capitulate, the Tea Party beats up Lady Liberty, and we still lose our AAA rating.

Can I pee myself now?

[Left Brain]

7. Dayum, Derb -

How I wish we still had DUzys. There's an award in that post if ever I saw one.

[DCBob]

4. i seroiusly doubt that . it makes no sense.

this is a significant move towards deficit reduction.. much sooner than many had expected.

[Trey9007]

5. According to Hartmann, Japan's Debt is 200% of their GDP...

and they still have a AAA rating. They even kept that AAA rating, during their nuclear crisis.

[DCBob]

6. I hate these fucking rating agencies.. they are as much to blame as anyone..

for this situation we are in. They lied to us during the Bush admin. They have zero credibility.

[badtoworse]

9. That, unfortunately, is something over which we have no control

Yes, they screwed up their ratings of mortgage backed securities, but if investors continue to make investment decisions and price debt offerings based on S&P and Moodys, it doesn't matter what we think.