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Reuters: S&P says pressure building on U.S. "AAA" rating (September 17, 2008)
Pressure is building on the pristine "AAA" rating of the United States after a federal bailout of American International Group Inc, the chairman of Standard & Poor's sovereign ratings committee said on Wednesday.

The $85 billion bailout of AIG on Tuesday by the U.S. Federal Reserve "has weakened the fiscal profile of the United States," S&P's John Chambers told Reuters in an interview.

"Lack of a pro-active stance could have resulted in further financial stress and put pressure on the U.S. triple-A rating," Chambers said. "There's no God-given gift of a 'AAA' rating, and the U.S. has to earn it like everyone else."

No, it's not God-given, it's S&P-given. The credit agencies are punching above their weight and will have much to answer for when all is said and done.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Sun Sep 21st, 2008 at 08:49:56 AM EST
[ Parent ]
Off topic but relevant:

Suppose the US exchanges all of the bad debt from whatever for Communist Chinese ownership of all this foreclosed real estate?  The Chinese won't need a war to defeat the US.  They'll simply export Chinese citizens to the US who will vote out the Anglos/blacks/Latinos/etc.

Cool?

They tried to assimilate me. They failed.

by THE Twank (yatta blah blah @ blah.com) on Sun Sep 21st, 2008 at 08:57:42 AM EST
[ Parent ]
That's interesting, and not even off topic. It's one way we could pay our debts to the world, and much less dangerously than by arms sales. I wonder how many Chinese could move onto all that real estate?

Note to Barack Obama: be sure to consult

   THE Twank (paszeski_aaaaaaatttttt_yahoo.com)

when it's time to Pay Off the World.

by Ralph on Sun Sep 21st, 2008 at 10:47:08 AM EST
[ Parent ]
Well, I guess i should feel flattered.  I may have to start reading some of my SPAM.

They tried to assimilate me. They failed.
by THE Twank (yatta blah blah @ blah.com) on Sun Sep 21st, 2008 at 02:34:52 PM EST
[ Parent ]
On S&P country credit ratings, see FT and S&P - conventional wisdom : why we should care by Agnes a Paris on March 28th, 2006
S&P sets the sovereign rating of almost each country in the world, and a country that has no rating can hardly tap international finance markets. France, UK, the US, like most OECD countries, are AAA rated, which is the highest rating on a AAA to D scale.
If the rating of a country is downgraded by even one notch (for France it would be AAA-, this immediately triggers investor suspicion, money fleeing the country and increases cost of government debt raising.


A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Sun Sep 21st, 2008 at 01:11:13 PM EST
[ Parent ]
Talking about Agnieszka - what's up with her. She hasn't been around for ages, unless she popped up during one of my hiatuses.
by MarekNYC on Sun Sep 21st, 2008 at 01:12:44 PM EST
[ Parent ]
Last I know (from a year ago) is that she was going to move to NYC. It had been a while since she had lurked on ET already then.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Sun Sep 21st, 2008 at 01:17:33 PM EST
[ Parent ]

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