U.S. loses AAA credit rating from S&P

[IamOld]

Guys, what's also interesting is that social-democracies like France and Germany are still AAA!!!

But - as you all wrote above - this will not be reversed until the uber-rich start paying tax and even MORE importantly, we bring manufacturing and call centers, etc., back to the US. THe economy - the US economy - is a hollow shell. You cannot survive on a hollow shell!!!

BUT AND ALSO - who the heck elected S&P etc to tell governments what to do? They are part and parcel of the "bankster conspiracy." Never mind the fact that they either lied and/or were 100% wrong before the collapse of real estate. So why do they even have ANY credibility left?

[banca rotta]

Guys, what's also interesting is that social-democracies like France and Germany are still AAA!!!

But - as you all wrote above - this will not be reversed until the uber-rich start paying tax and even MORE importantly, we bring manufacturing and call centers, etc., back to the US. THe economy - the US economy - is a hollow shell. You cannot survive on a hollow shell!!!

BUT AND ALSO - who the heck elected S&P etc to tell governments what to do? They are part and parcel of the "bankster conspiracy." Never mind the fact that they either lied and/or were 100% wrong before the collapse of real estate. So why do they even have ANY credibility left?

Oh I agree totally!!! The ratings agencies are also made up of criminals and frauds. They rated junk mortgage paper "AAA" and we saw how that turned out.

My point is that most institutional investors MUST invest in AAA securities in some cases by law.

Here's interesting reading on the subject.

http://investrealbig.com/us-aaa-rating-downgrade-the-important-detail

I don't know for sure without a crystal ball just how the markets will react on Monday to this. For all I know nothing will happen. I just know some investors may be forced to liquidate US debt all at the same time. Then what?

[banca rotta]

After reading so much world reaction on this I am especially getting tired of the Chinese. These people are like a giant store credit card getting p!ssed at us "deadbeats" for filing bk.

They loaned us a lot of money not because they like us but so that we can consume all of their goods for cheap and it will employ their people.

Now that it looks like we will pay them in devalued dollars or will just default they are unhappy.

If we as Americans did the right thing and save money, build things, pay down our debt China would be finished!

[albacore44]

A good friend of mine is makeing good money investing in Chineese stocks right now. Sure wish i had money to invest. i'm just sayin..............

[banca rotta]

Notice how they announce this Friday after the markets close. If any of you are holding stocks whether directly or in your 401k you can rest assure it will tank on Monday.

Sorry I take that back.

[banca rotta]

Notice how they announce this Friday after the markets close. If any of you are holding stocks whether directly or in your 401k you can rest assure it will tank on Monday.

Ok I said Monday not all week. "Make it stop, make it stop, ooh this hurts".

Actually today's carnage was due to the possibility that Bank of America maybe insolvent along with some Euro banks.

For those of you bk filers that put them in your petition I say kudos!

Welcome to the forum BOA. LOL

[treehugger1]

I'm just guessing, but I believe if you looked at the asset side of the three big banks, BoA, Chase, and Citi, they are all sitting on phony values that would not bring in the cash should they be liquidated. There are still securities out there that are truly over-valued and probably not just mortgaged-backed securities. I would also hazzard a thought that gold is over-valued. I wonder how long it will be before we find out that gold has been "over-sold." LOL

One can notice how in today's global economy, we need our money to be de-valued a bit. Otherwise, we cannot compete in the global market of exports. This is not going to change in any of our lifetimes. I donlt believe we will ever return to a time where the dollar had high value and our exports were strong.

It seems to me that in our quest to end communism and other un-democratic governments, we got bit in the ass. What appears to have happened is that capitalism rode in on the backs of the pseudo-democracies and we are being beaten at our own game.

Let the big ones fail this time around. Maybe we can once again become a competitive, democratic, capitalist country.

In the meantime, we cannot make anyone, including our own citizens spend money they don't have. The profit due to credit is getting weaker. I don't know what the answer is. Lost revenues cannot simply be made up by excessive fees and charges on the consumer by the big financial institutions.

All this talk about deflation seems more dedicated to holding up asset sheets. Perhaps we need to let everything deflate, including wages/salaries. We would find out what people (worldwide) are really willing to pay.

With regards to the worry about US default, we are not even close to such action as other countries in the world now appear to be. I would guess that China, and some of the wealthy Middle-eastern countries have more to lose from US/European defaults than most other countries. The US bonds held by China and other countries contribute to the "asset" side of those countries balance sheets. This is exactly why the world is so concerned with the possibility of several European defaults. Default from the US would be the icing on the cake, and perhaps, the great equalizer.

I still doubt anyone has the guts to just let it all happen. Then again, what the hell do I know? I'm drinking a damned fine wine imported from Chilie. LOL

[banca rotta]

With the Holidays coming up who wants to take bets that either this Wednesday evening or around or on Christmas eve another ratings agency will down grade the US since they failed to come up with an agreement?