Breaking: S&P downgrades U.S. to AA+; Update: S&P statement added; Update: No chance of downgrade, said Geithner in April

posted at 8:39 pm on August 5, 2011 by Allahpundit

With a “negative outlook” to boot.

America is now a risky investment.

U.S. Treasuries, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the UK, Germany, France or Canada.

The outlook on the new U.S. credit rating is negative, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months.

See the last few updates in the other thread for details on this afternoon’s drama between S&P and the White House. Supposedly the agency admitted privately that it goofed in using the wrong debt-to-GDP baseline — a $2 trillion error. But when you’re $14 trillion in the hole and set to add $6 trillion more by the end of the decade, what’s $2 trillion, really? A deadbeat’s a deadbeat.

Odds of that negative outlook turning into a further downgrade if the Super Committee chokes: High. Stand by for updates.

Update: A grumpy White House points to S&P’s math error and calls it “amateur hour.”

Update: Zero Hedge has the text of S&P’s statement. The debt-ceiling deal wasn’t good enough:

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade…

The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year’s wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability…

When comparing the U.S. to sovereigns with ‘AAA’ long-term ratings that we view as relevant peers–Canada, France, Germany, and the U.K.–we also observe, based on our base case scenarios for each, that the trajectory of the U.S.’s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.

Not only can’t the Super Committee fail, it’ll be under enormous public pressure to reach a grand bargain. That’s the silver lining in this cloud — they have to get serious now. They have no choice.

Update: A footnote to a bleak day via Dan McLaughlin: Rick Perry gets another point of contrast for his campaign.

Update: Is this an economic mega-quake or a slight tremor? There’s no way to know since we’ve never been here before, says WaPo’s Dyan Matthews, but here are the arguments for both scenarios.

Update: This video from April is now circulating on Twitter. No comment necessary.


Update: The GOP was planning to push their message for a balanced-budget amendment during the August recess. The downgrade will help that effort, but I wonder after this whether we’ll have an August recess after all. Is Congress really going to sit back for another four weeks while the economy tries to cope with this news?

Update: A “psychological haymaker”:

But the move by S&P could serve as a psychological haymaker for an American economic recovery that can’t find much traction, and could do more damage to investors’ increasing lack of faith in a political system that is struggling to reach consensus on even everyday policy items. It could lead to the prompt downgrades of numerous companies and states, driving up their costs for borrowing. Policy makers are also anxious about the hidden icebergs the move could suddenly reveal…

Some investors believe Treasurys will remain a safe haven in a volatile world, even without a solid triple-A credit rating. Others believe the U.S. will be forced to pay higher interest rates, perhaps about 0.5 percentage points, simply because they are seen as being slightly more risky than before. While only a slight gain, such a jump would increase the cost of a wide array of debt, from a home mortgage to the trillions carried by the U.S. government itself…

J.P. Morgan Chase & Co. analysts estimate some $4 trillion worth of Treasurys are pledged as collateral by borrowers such as banks and derivatives traders. If that collateral isn’t considered as high quality by lenders, the borrowers could be required to cough up more cash or securities to put the minds of lenders at ease.

That could force investors to sell off other assets to come up with the money. In a worst case scenario, credit markets could seize up, as they did during the Lehman Crisis.

Update: Fannie Mae and Freddie Mac will probably be downgraded too. So much for any near-term housing market recovery.

Update: The Treasury Department is indignant: “A judgment flawed by a $2-trillion error speaks for itself.”

Update: Warren Buffett, whose own company was downgraded by S&P, thinks it’s a big nothingburger:

Buffett to my colleague Liz Claman: Did the US deserve this? “Buffett: “NO.”Are you worried about the markets Monday? “NO.”

Update: Lefty Kevin Drum wonders how the debt-ceiling deal could have made the U.S. an instant credit risk given that (a) the sides did reach a deal, and were never seriously at risk of not doing so, and (b) there was zero chance of an actual default. Tax revenues would have covered interest payments to creditors. More:

Look: the United States has been running up big debts for the past couple of years because we’re trying to climb out of an epic recession. That’s perfectly justifiable. And our focus on reining in our long-term debt is, literally, less than a year old. Pretending that our political system is fundamentally broken because we haven’t solved our long-term problems in a few months is staggeringly panicky and ahistorical, and S&P’s obsession with hitting a $4 trillion target for medium-term deficit reduction is economically vacuous. If we still can’t get our act together in four or five years, then fine. We deserve a downgrade. But a few months? That’s crazy. It’s the kind of hair-trigger reaction that belongs on cable shoutfests, not in the boardroom of a sober, 150-year-old financial firm.

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Wow… so now our interest shoots up?

CCRWM on August 5, 2011 at 8:40 PM

MORE.

FASTER.

artist on August 5, 2011 at 8:41 PM

This is success to the one.His goal all along.

bbz123 on August 5, 2011 at 8:41 PM

Kick John Boehner out of the Speaker’s chair. He’s useless. Michele Bachmann for Speaker.

scrubjay on August 5, 2011 at 8:41 PM

UNPRECEDENTED.

artist on August 5, 2011 at 8:42 PM

Happy Birthday Mr. Obama!!

A big first for you, the first President to ruin the credit rating of the United States. You must be so proud!!

PetecminMd on August 5, 2011 at 8:42 PM

This country is doomed now. :(

capejasmine on August 5, 2011 at 8:42 PM

Will this push all rates up so that my savings account will make a little more interest now?

Mark1971 on August 5, 2011 at 8:42 PM

our political class…the best money can buy:

The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed.

of course we’ve known that for a while

http://www.zerohedge.com/news/sp-downgrades-us-aa-outlook-negative-full-text

r keller on August 5, 2011 at 8:42 PM

So much for the neocon dimbulbs that said we’d NEVER be downgraded.

Uncle Sams Nephew on August 5, 2011 at 8:42 PM

Incredible. I never thought I would see the day. Yes, I know, the debt’s horrendous but I never thought we would allow this to happen.

Django on August 5, 2011 at 8:43 PM

Here we go…

disa on August 5, 2011 at 8:43 PM

Dear Liar owns this. Owns it. Three years into his regime.

rbj on August 5, 2011 at 8:43 PM

The report from S&P is worded very politically, and is framed along the narrative the media’s been trying to push. I think there’s been a bit of politicization by Obama’s Admin to ensure a particular outcome in the debt negotiations:

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.

This, of course, is laughable. A divided U.S. government has always been a part of U.S. history. The problem isn’t a divided government, it’s decade after decade of entitlement spending and economic destruction through wealth redistribution, combined with demographic changes, that’s causing the problems. That paragraph right there was to give S&P cover against Obama.

Weight of Glory on August 5, 2011 at 8:43 PM

But but but, the democrats said that the debt deal would stave off default and downgrade?

knob on August 5, 2011 at 8:43 PM

And the blame game commences…

Scott H on August 5, 2011 at 8:43 PM

Kick John Boehner out of the Speaker’s chair. He’s useless. Michele Bachmann for Speaker.

scrubjay on August 5, 2011 at 8:41 PM

Sorry man, but this is much bigger than anyone’s favorite fantasy political celeb of the year…

Politicians will not solve this, only time and a whole lot of misery.

ClassicCon on August 5, 2011 at 8:43 PM

I guess Obama won.

crosspatch on August 5, 2011 at 8:43 PM

Thank you, President Obama.

crr6

INC on August 5, 2011 at 8:44 PM

Message to America – don’t make the same mistake next November.

So since the conga and the electric slide were done when the DOW crashed.

Does the President do the “hustle” for a credit downgrade.

gophergirl on August 5, 2011 at 8:44 PM

The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed.

Hm. Who’s to blame for that?

crr6 on August 5, 2011 at 8:44 PM

Can somebody ask that fool John Boehner and all the RINOs who backed him what his compromise has done? They never were serious about cutting debt n deficits and we are now seeing this result.

promachus on August 5, 2011 at 8:44 PM

So much for the jingoist doofuses that said the US would never, ever be downgraded, pinky-swear promise!

Any takers on the stock market doing a repeat of 1930?

Uncle Sams Nephew on August 5, 2011 at 8:45 PM

Good thing we don’t have a D student in the White House.

Mark1971 on August 5, 2011 at 8:45 PM

That paragraph right there was to give S&P cover against Obama.

Weight of Glory on August 5, 2011 at 8:43 PM

Exactly, which is why I am disgusted by this I trust the scumbag S&P as much as Fannie. Fck the elite and let them all burn. They are playing with this country with us as the ultimate losers regardless of their success or failure.

ClassicCon on August 5, 2011 at 8:45 PM

Wait till Monday.

SlaveDog on August 5, 2011 at 8:45 PM

This country is doomed now. :(

capejasmine on August 5, 2011 at 8:42 PM

We’re not doomed – just winged a bit.

gophergirl on August 5, 2011 at 8:46 PM

Obama owns this disaster. The state media and the Democrats will blame it on Tea Party “terrorists” but I don’t think people are going to buy it.

I hate Obama, the Dems, and their servile media for what they’ve done to my country.

Django on August 5, 2011 at 8:46 PM

I am sooooo going to bring this up to the hard core lefty who comes in on second shift at work.

Hope and Change, Baby!

predator on August 5, 2011 at 8:46 PM

Larry Kudlow has just reported that S & P admits they added the figures wrong – after the White House pointed out the error to them.

It’s the Chicago way!

honsy on August 5, 2011 at 8:46 PM

Also, by S&P offering the political commentary, it has added fuel to the political fire. Because there’s enough in there for both sides to latch on to. One side can say we need to cut entitlements, while the other sided can say we need to raise taxes. S&P should’ve been a bit more tactful in how they framed their commentary.

Weight of Glory on August 5, 2011 at 8:46 PM

Oh yeah.
That’s bad.

12thMonkey on August 5, 2011 at 8:46 PM

CHANGE YOU CAN BELIEVE IN!!!

(If you’re not Standard and Poors…)

landlines on August 5, 2011 at 8:46 PM

Hm. Who’s to blame for that?

crr6 on August 5, 2011 at 8:44 PM

The very same people that haven’t submitted a budget for 800+ days…

Gohawgs on August 5, 2011 at 8:46 PM

I wonder if Obama and the democrats consider his presidency a success now?

meci on August 5, 2011 at 8:46 PM

I’m soooo glad we dodged this bullet by raising the debt limit. Our prodigious lawmakers made the tough decisions and finally compromised. Whew. Oh wait.

conservative pilgrim on August 5, 2011 at 8:46 PM

Reality: 1

American exceptionalism: 0

Uncle Sams Nephew on August 5, 2011 at 8:46 PM

Wait till Monday.

SlaveDog on August 5, 2011 at 8:45 PM

F*ckin A….

Django on August 5, 2011 at 8:47 PM

Update: A grumpy White House points to S&P’s math error and calls it “amateur hour.”

That’s the biggest joke right there.

promachus on August 5, 2011 at 8:47 PM

Unbelievable. This is a travesty.

Obama’s foolhardiness and rank incompetence has set our great nation on a path to ruin. There’s no way in hell is media servants are going to spin this away.

KingGold on August 5, 2011 at 8:47 PM

Will this interrupt my Hip-Hop BBQ?-Obama

artist on August 5, 2011 at 8:47 PM

Obama and the Democrats must be jumping for joy.

Their Cloward–Piven strategy to overload and destroy America financially so they can rebuild it as a Communist state is really starting to take hold.

RJL on August 5, 2011 at 8:47 PM

The WH calling anyone “amateur hour” is the pot calling the kettle black. Look in the mirror, Buh-rock, it’s alllll on you. And knowing you the way I do, you’re squeeling with delight at this bad news for the country to depsise so much.

-Aslan’s Girl

Aslans Girl on August 5, 2011 at 8:47 PM

Hm. Who’s to blame for that?

crr6 on August 5, 2011 at 8:44 PM

*cough* Harry Reid *cough*

gophergirl on August 5, 2011 at 8:47 PM

What did we expect really?

Cosmetic spending cuts were never going to prevent this.

clnurnberg on August 5, 2011 at 8:48 PM

And. So.

I am not trying to be snarky.

Didn’t we just have a smashing birthday party last night?

betsyz on August 5, 2011 at 8:48 PM

Wait till Monday.

SlaveDog on August 5, 2011 at 8:45 PM

F*ckin A….

Django on August 5, 2011 at 8:47 PM

1930 anyone?

(and where the heck have my last 3 posts gone?!)

Uncle Sams Nephew on August 5, 2011 at 8:48 PM

Weight: Would it have made any difference? The liberals (in media and out) will literally call white black if it suits their purposes.

So does it matter what S&P said?

Scott H on August 5, 2011 at 8:48 PM

Obama’s foolhardiness and rank incompetence has set our great nation on a path to ruin. There’s no way in hell is media servants are going to spin this away.

KingGold on August 5, 2011 at 8:47 PM

You wait and watch. Meanwhile, the people whom you worship John Boehner and the rest of the GOP establishment are responsible for this also.

promachus on August 5, 2011 at 8:48 PM

Hm. Who’s to blame for that?

crr6 on August 5, 2011 at 8:44 PM

I am thinking phony-Americans such as yourself who actually believe that paying for something is a violation of your civil rights.

ClassicCon on August 5, 2011 at 8:48 PM

Predator strike.

Southernblogger on August 5, 2011 at 8:48 PM

But but but, the democrats said that the debt deal would stave off default and downgrade?

knob on August 5, 2011 at 8:43 PM

That was before they said that “the damage had already been done” by all the scary talking.

Sort of like how Iran told the EU, “if you don’t acknowledge our right to go nuclear, we’ll step up our nuclear program.” The Democrats tell us “if you don’t acknowledge our right to borrow trillions more to pay our current borrowers, our credit will be downgraded!”

HitNRun on August 5, 2011 at 8:48 PM

This country is doomed now. :(

capejasmine on August 5, 2011 at 8:42 PM

Politics before country. A lot of people are getting a woody tonight.

fastestslug on August 5, 2011 at 8:48 PM

Good thing we don’t have a D student in the White House.

Mark1971 on August 5, 2011 at 8:45 PM

Maybe we do. But no one is leaking his transcript. At least that we know about.

SlaveDog on August 5, 2011 at 8:48 PM

Proof that Obama knows what he’s doing.
-

RalphyBoy on August 5, 2011 at 8:48 PM

I downgrade Obama from a Solid “B+” to an “F”

William Amos on August 5, 2011 at 8:48 PM

Update: A grumpy White House points to S&P’s math error and calls it “amateur hour.”

Heh. Classic projection.

conservative pilgrim on August 5, 2011 at 8:49 PM

I almost threw up. It is so said. Like a funeral. Ugh.

andy85719 on August 5, 2011 at 8:49 PM

Sad, that is.

andy85719 on August 5, 2011 at 8:49 PM

*cough* Harry Reid *cough*

gophergirl on August 5, 2011 at 8:47 PM

It’s not just Reid. Obama needs to wear this scarlet AA+ on his chest until the very last vote is counted in 2012. Both of them refused to touch entitlements at all, and gave us this mess.

KingGold on August 5, 2011 at 8:49 PM

Hm. Who’s to blame for that?

crr6 on August 5, 2011 at 8:44 PM

An insulated political and media class that refuses to release its choke hold on wealth creation and economic freedom, and would rather stick their heads in the ground and pretend we can keep spending more than we make. Oh right…never mind…I’ve been trained to say it’s the Tea Party baaaaa. I forgot my place for a second. Thanks for reminding me how the sheep are supposed to think.

Weight of Glory on August 5, 2011 at 8:49 PM

Bush’s fault.

vcferlita on August 5, 2011 at 8:49 PM

Hm. Who’s to blame for that?

crr6 on August 5, 2011 at 8:44 PM

I guess the guy who was bluffing.

HitNRun on August 5, 2011 at 8:49 PM

Obama and the Democrats must be jumping for joy.

Their Cloward–Piven strategy to overload and destroy America financially so they can rebuild it as a Communist state is really starting to take hold.

RJL on August 5, 2011 at 8:47 PM

Well, every dog has a strategy for catching the car too. Oft times, the consequences of such a success are unforeseen.

A Balrog of Morgoth on August 5, 2011 at 8:49 PM

for the country to you depsise despise so much.

FIFM.

Aslans Girl on August 5, 2011 at 8:49 PM

Hm. Who’s to blame for that?

crr6 on August 5, 2011 at 8:44 PM

Couldn’t be the guy who kept changing the deal at the last minute, or throwing a tantrum and leaving altogether, could it?

But by all means, let’s spend more. That’ll fix the problem.

PetecminMd on August 5, 2011 at 8:50 PM

Their Cloward–Piven strategy to overload and destroy America financially so they can rebuild it as a Communist state is really starting to take hold.

RJL on August 5, 2011 at 8:47 PM

Exactly. I used to listen to leftist classmates pray for this day. I suspect Obama did his share of wishing for the downfall back in his doobie days

clnurnberg on August 5, 2011 at 8:50 PM

Can’t blame them.

We’re borrowing $120 billion a month with no end to the loans coming. We need to plug the hole, by cuts and/or new taxes. I would strongly prefer cuts.

The compromise was about getting a deal through the Senate and White House. If we want to change the way things work, we need new Senators and a new President. Our first focus should be tossing Democrats out of office.

amazingmets on August 5, 2011 at 8:50 PM

S & P owns a jet – a corporate jet.

Ted Torgerson on August 5, 2011 at 8:50 PM

“Cutting Medicare is key to long term fiscal stability.”

S&P report from CNN.

SlaveDog on August 5, 2011 at 8:51 PM

I wonder how Allah will spin this away from GOP establishment like he did with the market crash. The debt deal had nothing to do with this , the future recession is. /s

promachus on August 5, 2011 at 8:51 PM

barry’s big gamble was always to gorge the beast…spend 25% of gdp until the Rs collapsed and would raise taxes.

barry wants a lot of money…hopefully 2012 will work this out so that we don’t go down the road of Argentina, etc.

And this is why Schumer et al. blew up at J. Karl…they knew this was coming…they can’t have any pipsqueak press corpse arguing with them…it is the TP, now stfu Jonathan

r keller on August 5, 2011 at 8:51 PM

Hey! Can we say that Obama inherited an AAA rating from Bush?

Weight of Glory on August 5, 2011 at 8:51 PM

Here’s the deal; Obama wins, no matter what he says, walks through windows, can’t operate umbrellas, it is his birthday, etc. etc. etc. he always wins.

betsyz on August 5, 2011 at 8:51 PM

S & P owns a jet – a corporate jet.

Ted Torgerson on August 5, 2011 at 8:50 PM

Beautiful!

SlaveDog on August 5, 2011 at 8:51 PM

I downgrade Obama from a Solid “B+” to an “F”

William Amos

I’d give him a solid F.U.!

honsy on August 5, 2011 at 8:51 PM

What Obama meant in 2008 by “Change”.

Cheers!

Schadenfreude on August 5, 2011 at 8:51 PM

Obama continues to “WTF!”

RJL on August 5, 2011 at 8:52 PM

You wait and watch. Meanwhile, the people whom you worship John Boehner and the rest of the GOP establishment are responsible for this also.

promachus on August 5, 2011 at 8:48 PM

This isn’t some kind of power-play game anymore, you agitating whiner. Boehner tried to pare back entitlements by pressing the Ryan budget, and Obama and Reid stopped him.

You keep blaming Boehner and no one else for this, and we’re going to assume you’re a Democrat, because that’s exactly the same tack those welfare barons are taking on this particular issue.

KingGold on August 5, 2011 at 8:52 PM

Who cares

Key West Reader on August 5, 2011 at 8:52 PM

Weight: Ouch, that’s going to leave a mark… I like it.

Scott H on August 5, 2011 at 8:52 PM

I almost threw up. It is so said. Like a funeral. Ugh.

andy85719 on August 5, 2011 at 8:49 PM

Nah it makes me want to fight harder. Knock on doors, make phone calls, drop fliers. I will get my country back from this disaster that has it right now. Bring on the election.

GET OBAMA OUT 2012 – that’s my motto.

gophergirl on August 5, 2011 at 8:52 PM

It’s not just Reid. Obama needs to wear this scarlet AA+ on his chest until the very last vote is counted in 2012. Both of them refused to touch entitlements at all, and gave us this mess.

KingGold on August 5, 2011 at 8:49 PM

Neither did John Boehner nor Mitch Mocconnell.

promachus on August 5, 2011 at 8:52 PM

That’s gonna leave a mark.

BierManVA on August 5, 2011 at 8:53 PM

Who cares?

Key West Reader on August 5, 2011 at 8:53 PM

Hm. Who’s to blame for that?

crr6 on August 5, 2011 at 8:44 PM

The guy who insisted on any debt ceiling raise going past the next election had nothing to do with it, obviously.

A Balrog of Morgoth on August 5, 2011 at 8:53 PM

This is success to the one. His goal all along.

bbz123 on August 5, 2011 at 8:41 PM

You are correct, and the left doesn’t care one bit.

scotash on August 5, 2011 at 8:53 PM

Pomegranate blossoms hardest hit…

d1carter on August 5, 2011 at 8:53 PM

For xblade: remember two days ago when you called me naive to think a downgrade was possible?

For crr6: so, you’re saying if the senate hadn’t rejecyed CCB, this still would have hapened?

Kataklysmic on August 5, 2011 at 8:53 PM

KingGold: May I suggest you read what promachus wrote?

John Boehner and the rest of the GOP establishment are responsible for this also.

promachus on August 5, 2011 at 8:48 PM

Emphasis mine. He certainly is not blaming ‘Boehner and no one else’.

Scott H on August 5, 2011 at 8:53 PM

A grumpy White House points to S&P’s math error and calls it “amateur hour.”

Pot, meet kettle.

Wethal on August 5, 2011 at 8:53 PM

CONGRATULATIONS BARACK OBAMA

John the Libertarian on August 5, 2011 at 8:53 PM

Boehner should call on Obama to re-open “the deal” tomorrow, and get some REAL spending cuts. If they want to raise taxes, let them start taxing the 50% of Americans who pay NOTHING.

Rational Thought on August 5, 2011 at 8:54 PM

I’m kind of laughing at this point; we knew.

So What?

Key West Reader on August 5, 2011 at 8:54 PM

Allen West, please answer the flashing phone. Allen West, Renee Elmers, et. al., please answer the flashing phone.

SouthernGent on August 5, 2011 at 8:54 PM

“Cutting Medicare is key to long term fiscal stability.”

S&P report from CNN.

SlaveDog on August 5, 2011 at 8:51 PM

That’s some ammunition for the GOP going forward.

gophergirl on August 5, 2011 at 8:54 PM

I almost threw up. It is so sad. Like a funeral. Ugh.

andy85719 on August 5, 2011 at 8:49 PM

That makes two of us. After many years in the investment biz with US Treasuries as the ultimate in security and a symbol of national strength, this is just unbelievable.

Django on August 5, 2011 at 8:54 PM

Hm. Who’s to blame for that?

crr6 on August 5, 2011 at 8:44 PM

I remember Obama once saying it was the president’s responsibility.

But clearly that’s just because the president was a Republican, as the GOP seems to be the only acceptable answer here.

Esthier on August 5, 2011 at 8:55 PM

All is going according to plan.

The only thing that could have stopped this is the GOP but they were too busy “reaching across the aisle”. I hate them all.

stenwin77 on August 5, 2011 at 8:55 PM

KingGold on August 5, 2011 at 8:52 PM

Nah, Boehner proposed CCB and then backed out of it and went with the debt deal, you establishment shill. Which solved nothing. The GOP establishment owns this as much as do the Democrats. If they had gone with the reforms needed instead of caving in, this wouldn’t have happened.

promachus on August 5, 2011 at 8:55 PM

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