United States loses AAA credit rating from S&P

NEW YORK Fri Aug 5, 2011 8:19pm EDT

NEW YORK Aug 5 (Reuters) - The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday, in a dramatic reversal of fortune for the world's largest economy.

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits.

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. (Reporting by Walter Brandimarte; Editing by Jan Paschal)

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Comments (8)
MikeR7 wrote:
Oh boy.

Aug 05, 2011 8:38pm EDT  --  Report as abuse
Outpatient wrote:
A great big hearty THANK YOU to the terrorist Tea Party and GOP who brought America to her current status. This entire fiasco was created by a minority of pathological liars to bring our country down. They raised the debt limit repeatedly (seven times) when Mr. Bush was president but were willing to destroy our economy when a Democrat is in the White House. If you are an American, you cannot support the GOP. You don’t have to support Mr. Obama, but you have to support your country. This story must be told.

Aug 05, 2011 8:51pm EDT  --  Report as abuse
JeffJohnson wrote:
This shouldn’t be a surprise. If anyone of us did with our personal finances what the American “leaders” do with the economy, we would have crappy credit too. This downgrade is inevitable on the path america is heading, more to come.

The fix is not about raising how much more money we can go into debt, it’s about proper management of the money we have. I want to see our elected leaders show us a monetary breakdown of exactly where the dollars go. How many billion to Israel, Pakistan, Iraq, etc, etc, etc…

How about we start voting; fireman and policemen or give the money to a foreign country? The American government puts the American people 2nd and foreign money give-a-ways first.

We have enough money to pay for our infrastructure, but our corporate-lobbied-politicians have other “interests”.

Americans are still paying taxes, this was enough to make the government go around before, why not now?

The downfall to American democracy is the lack of separation of corporate and state.

I think Bin Laden’s plan is working well,

“Do not be deluded by your power and modern weapons. Although they win some battles, they lose the war. Patience and steadfastness are better than them. What is important is the outcome.

We have been tolerant for 10 years in fighting the Soviet Union with our few weapons and we managed to drain their economy.

They became history, with God’s help.
You should learn lessons from that.”

I don’t think it takes an economist at this point to see that the American economy is draining. If we wouldn’t have been looking for WMDs in Iraq and making Iraq that happy peaceful place it is now, we would have trillions of dollars more to help deal with our current situation now.

We need a revolution.

Aug 05, 2011 9:10pm EDT  --  Report as abuse
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