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4 Bumps

Would an immediate downgrade on US credit rating be the best thing to happen at this point?

It would limit the amount investors would be willing to invest in the US. As long as the three major rating agencies continue to give the green light to US investments, further degrading our ability to meet future obligations, politicians will continue to stick with the status quo.

Answer Question
 
Carpy

Asked by Carpy at 4:55 PM on Apr. 18, 2011 in Politics & Current Events

Level 39 (114,053 Credits)
Answers (10)
  • Maybe then they would stop borrowing and use what is within our means.... make sense?
    amazinggrace83

    Answer by amazinggrace83 at 4:57 PM on Apr. 18, 2011

  • I don't think the ratings should be looked at in terms of political strategy. Investors should be given honest information about the investments they are considering in the same way an individuals credit rating should accurately reflect thier credit worthiness.
    UpSheRises

    Answer by UpSheRises at 5:08 PM on Apr. 18, 2011

  • I don't know how much importance should be given to these commercial credit rating reports . Before the Wall St bubble burst, investment companies involved in derivatives and bundled below prime securities trading were being given good ratings , calling into question the bases on which these assessments are made.
    janet116

    Answer by janet116 at 5:19 PM on Apr. 18, 2011

  • I think it just might be what is needed--assuming politicians actually plan on walking the walk, and not just talking the talk when it comes to fostering a jobs-centric culture and reigning in the spending!!

    LoriKeet

    Answer by LoriKeet at 5:19 PM on Apr. 18, 2011

  • I don't know how much importance should be given to these commercial credit rating reports

    This is S&P not equifax.
    Carpy

    Comment by Carpy (original poster) at 5:23 PM on Apr. 18, 2011

  • I know the difference , Carpy, don't be silly
    janet116

    Answer by janet116 at 5:32 PM on Apr. 18, 2011

  • I listened to some economists today. They seemed to think there is much worse than not raising the debt ceiling or the US loosing its AAA standing. They tossed around the terms like 'fear mongering' amongst the left to make us scared and put us on a letter writing binge to get our representatives to vote for the debt increase. I don't know. I think that the last increase came with some spending cuts. Only PBO would come out and announce he wants to raise taxes and increase spending to get us out of this mess. Does he ever look back at past actions to see how they worked or is it an 'out of sight - out of mind' mentality. Either way - he sucks at economics.
    jesse123456

    Answer by jesse123456 at 6:47 PM on Apr. 18, 2011

  • Does he ever look back at past actions to see how they worked or is it an 'out of sight - out of mind' mentality. Either way - he sucks at economics.


    Yes, he did- even carried RR's book around with him. Obama, similar to RR, spent like a drunken sailor and extended tax cuts. RR got lucky, as spending like a fool while growing an unfunded government worked for him, BECAUSE we still had a strong manufacturing sector, money in the bank and a reputation as a stable economic powerhouse. Unfortunately, the last 30 years of PPP and  fiscal MISmanagement has now caught up with this country.


    Without campaign and elections reform we are hosed- Favors due can not be part of a stable government!

    Sisteract

    Answer by Sisteract at 8:44 PM on Apr. 18, 2011

  • I am surprised it didn't happen before now. This could seriously hurt us though...just take a look at what happened with the markets globally today. In the long run it will equal higher interest rates on our debt and it could mean we have a harder time finding countries to lend us money.
    yourspecialkid

    Answer by yourspecialkid at 9:03 PM on Apr. 18, 2011

  • No shit. Equifax rates the credit of individuals.

    Standard & Poors rate the credit of organizations.
    UpSheRises

    Answer by UpSheRises at 2:03 PM on Apr. 19, 2011

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