What does the S&P downgrade Mean to us?

[FREE TO FAIL]

Well no doubt you are all aware of the S&P downgrade of the fed debt, but what do you think that will do to the general economy and our business?

The cost of borrowing is sure to go higher, but what of the effect on industry purchases (which we transport) and consumer confidence. (already poor) I am very concerned, how do you think it will play out?

As a side note I am angry that the legislature could not put together 4 trillion in cuts to avoid this, when they were told that was what it was going to take. Now look at the comments from China a country that was built in the last 40 years on the backs of the american consumer.

 

[layoutshooter]

I moved this thread to the SoapBox. That seemed to be a better place for it.

 

[OntarioVanMan]

after awhile one can only blame the politicians to a point...after that is all on the voters to be faulted for electing sub standards leaders....

 

[layoutshooter]

after awhile one can only blame the politicians to a point...after that is all on the voters to be faulted for electing sub standards leaders....

The problem is that there are just no good candidates willing to run. Far too much stupidity for good people to get involved. Why should any person of character be willing to put up with the garbage the press will put them through. The press in not interested in policies, beliefs etc, only getting Obama reelected. They will stop at nothing to see that happen. Even ruin lives if they can. They will do that, true or not.

 

[skyraider]

It means we are in the View attachment 2654

 

[EnglishLady]

Well no doubt you are all aware of the S&P downgrade of the fed debt, but what do you think that will do to the general economy and our business?

.

A long, hard road ahead for everyone .... no matter who sits in the hot seat

 

[layoutshooter]

A long, hard road ahead for everyone .... no matter who sits in the hot seat

What or who we need in the "hot seat" and congress are responsible, mature adults who understand that you just cannot continue to spend more than we take in. We do NOT have that now. We have an inexperience, child, who does not have the interest of the Nation at heart and a congress only interested in their own power and glory.

If WE, the People, don't take control in 2012, they will for good.

 

[EnglishLady]

What or who we need in the "hot seat" and congress are responsible, mature adults who understand that you just cannot continue to spend more than we take in. We do NOT have that now. We have an inexperience, child, who does not have the interest of the Nation at heart and a congress only interested in their own power and glory.

If WE, the People, don't take control in 2012, they will for good.

But even with "the right person" in the hot seat, I still think it will be a tough road for quite sometime to get back on the right side of the tracks.

 

[layoutshooter]

But even with "the right person" in the hot seat, I still think it will be a tough road for quite sometime to get back on the right side of the tracks.

Yep, the "power dudes and dudettes" would have to be jailed. You know, the congress and president, past and present.

If what our government did took place in private industry they would be in jail.

Keep in mind the MAIN blame rides in congress, not the president. Congress spends the money. They did NOT have to do the bidding of King Putz the 1st, they CHOOSE to do so. Proving they are only out for their own power and glory.

 

[greg334]

The blames sits with us layout and they are doing their own bidding.

BUT to answer the OP's original question - nothing.

The reason for this is we needed an increase in the interest rate, it would not hurt but we also should not care what Moodys, S&P or that other one says because there are only two really important factors we need to worry about - China's comments about getting our financial house in order and the FACT that all three of these credit rating houses have a serious credibility issue because they were part of the problem with the 'crisis' and recession as late as 2010. I read what China said and they are 100% correct when they said;

“The months-long tug of war between Democrats and Republicans…failed to defuse Washington’s debt bomb for good, only delaying an immediate detonation by making the fuse an inch longer, ...

“Meanwhile, the madcap farce of brinkmanship has disclosed yet another ticking bomb in the heartland of the sole superpower in the world — the crippling tendency to politicize the economics while trivializing the politics.”

They also say the downgrade was long overdue at the same time buying treasuries when their press release was sent out on the wires.

 

[skyraider]

The blames sits with us layout and they are doing their own bidding.

BUT to answer the OP's original question - nothing.

The reason for this is we needed an increase in the interest rate, it would not hurt but we also should not care what Moodys, S&P or that other one says because there are only two really important factors we need to worry about - China's comments about getting our financial house in order and the FACT that all three of these credit rating houses have a serious credibility issue because they were part of the problem with the 'crisis' and recession as late as 2010. I read what China said and they are 100% correct when they said;

“The months-long tug of war between Democrats and Republicans…failed to defuse Washington’s debt bomb for good, only delaying an immediate detonation by making the fuse an inch longer, ...

“Meanwhile, the madcap farce of brinkmanship has disclosed yet another ticking bomb in the heartland of the sole superpower in the world — the crippling tendency to politicize the economics while trivializing the politics.”

They also say the downgrade was long overdue at the same time buying treasuries when their press release was sent out on the wires.

U know , interest rates are great, but now this interest is more fun on the weekend in MHO View attachment 2656 u old dudes need some time off.lol

 

[mcavoy33]

The problem is that there are just no good candidates willing to run. Far too much stupidity for good people to get involved. Why should any person of character be willing to put up with the garbage the press will put them through. The press in not interested in policies, beliefs etc, only getting Obama reelected. They will stop at nothing to see that happen. Even ruin lives if they can. They will do that, true or not.

So your saying people that make threads calling out Joe Biden for acepting rent money from the SS are part of the problem.

 

[jjoerger]

China -- the world's second largest economy -- is rated two notches below the United States, at AA-.

 

[OntarioVanMan]

China -- the world's second largest economy -- is rated two notches below the United States, at AA-.

And? The point would be?

 

[jjoerger]

And? The point would be?

Maybe they should get there financial house in order before criticizing ours.

 

[OntarioVanMan]

From the link...

Which is worse, China's debt problem or ours? - CSMonitor.com

From first hand observation we weren’t able to draw much of a conclusion. But theory tells us that there is no way you can invest that kind of money – often with the help of local governments – without making some major mistakes.

Of course, that’s why there are corrections. That’s why every boom caused by excess, artificial credit is followed by a bust of excess, un-payable debt. Which is also why, here at The Daily Reckoning, we like corrections. They are like soap and water. They help get rid of accumulated debt dirt. And the grease of bad guesses. And the parasites that accompany a plan-gone-bad. So, lather up. Rinse well. And you’re fresh and ready to go again.

But the authorities don’t like washing up. After all, one man’s grease is another man’s career path. And the parasites vote.

 

[OntarioVanMan]

Maybe they should get there financial house in order before criticizing ours.

They are entitled to their opinions...after all they buy most of our debt....

They made very good observations....

so did S&P...the political structure here is bad and getting worse....

 

[Camper]

While a downgrade was long overdue, It's hard to see how this move will have much long-term effect on treasury yields, given the credibility issues the rating agencies have. Canada was downgraded to Double A and the imapct was very minute.

These agencies contributed to this mess by failing to properly rate the mortgage-backed securities that were at the heart of the financial crisis. Now, The government is so deeply in debt partly because of the damage done by that same crisis.

 

[scottm4211]

The Canadian dollar dropped almost 3 cents in relation to the US dollar last week but is still at $1.0190. That's the direct effect it has on me as I was losing 5 points on every dollar.
Whether any of it was due to the rating drop who knows. It's all voodoo anyway.

 

[OntarioVanMan]

The Canadian dollar dropped almost 3 cents in relation to the US dollar last week but is still at $1.0190. That's the direct effect it has on me as I was losing 5 points on every dollar.
Whether any of it was due to the rating drop who knows. It's all voodoo anyway.

So you are making .03 on the dollar more..or you just got a 3% raise....lucky you....