<p>S&P is a joke! They based their decision to downgrade purely on the politics even though no matter what, U.S. will race the debt ceiling. U.S. markets did not drop because of S&P alone, but it was a major factor which created record losses.</p>
<p>Yeah, the fact that the S&P miscalculated the federal deficit by $2 trillion is pretty BS. Add to that: the S&P downgraded the ratings on Freddie Mac and Fannie May. Fortunately, Moody’s has announced not to lower America’s credit rating…</p>
<p>Although dblazer, I’m not sure how the S&P is being political here.</p>
<p>JB</p>
<p>I meant that their downgrade was not based on facts. It was based on the brinkmanship of congress. Yet their concern is unfounded considering the U.S. will and always will pass the debt ceiling raise when required.</p>
<p>The S&P said only two things would keep the credit rating at AAA: 1. Raise the debt ceiling and 2. Congress comes up with a feasible plan to balance the budget/work on the federal deficit. While Congress got the debt ceiling up, I dunno if we’re going to see a feasible cost-cutting agenda… Hence why the S&P downgraded.</p>
<p>JB</p>
<p>S&P would NOT have downgraded had the Debt ceiling been passed without delay. Even if a later budget deal was made, it would not have been downgraded.</p>
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<p>Investors’ concerns over the global economy, not the downgrade. A lot of the money leaving the stock market is going into US Treasuries, which isn’t the place to put money if they were worried about the US’s credit.</p>
<p>I do agree with the fact that S&P was politically motivated to drop the credit rating. I find it funny that they just now dropped FM’s and FM’s credit rating when that should have been done a while back. </p>
<p>S&P is an organization though. I find it horrible that people give them the credit they do, its not healthy.</p>
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I would find it funny if we just nationalized them now.</p>
<p>Also, nice pun.</p>
<p>Bump. What does everyone think will happen in subsequent weeks? I’m actually starting to get bearish: consumer sentiment and September economic indicators should push the market lower.</p>
<p>consumers are still buying. I’m starting to think the “double dip” fears were a little overblown (but just a little).</p>
<p>What will happen is possibly a slow slow rise back up in job creation, stock numbers, etc. Depends on who you ask, really.</p>
<p>JB</p>