Financial System Riskier, Next Bailout Will Be Costlier, S&P Says

[Keith Bee]

Source: Huffington Post

The financial system poses an even greater risk to taxpayers than before the crisis, according to analysts at Standard & Poor's. The next rescue could be about a trillion dollars costlier, the credit rating agency warned.

S&P put policymakers on notice, saying there's "at least a one-in-three" chance that the U.S. government may lose its coveted AAA credit rating. Various risks could lead the agency to downgrade the Treasury's credit worthiness, including policymakers' penchant for rescuing bankers and traders from their failures.

"The potential for further extraordinary official assistance to large players in the U.S. financial sector poses a negative risk to the government's credit rating,” S&P said in its Monday report.

But, the agency's analysts warned, "we believe the risks from the U.S. financial sector are higher than we considered them to be before 2008."

Read more: http://www.huffingtonpost.com/2011/04/19/financial-system-riskier-_n_851122.html

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To me, this looks like a news story. Based on past experience, however, I guess I'll be seeing you all in General Discussion.

:shrug:

[Angry Dragon]

1. No ........ there will be no second bailout

the banks and wall street fought all regulations so they can pull themselves up by their own boot straps

And if we have to bail them out then anyone getting bailouts will be owned by the American people 100%
enough of this financial bullshit

[RKP5637]

7. The banks should be broken up IMO. There should be no company so large

that it's too big to fail. Just common sense should tell us that incurs too much risk across a society. We have far too many monopolies in this country.

[Hugabear]

9. That, or nationalize the banking industry

Same thing with the energy industry.

[RKP5637]

10. Yep, I agree. These are strategic industries vital to the integrity and future of this country,

and should not be subject to the whims, greed and miscalculations of wholly private entities.

[SolutionisSolidarity]

11. They are stronger than ever. We are barely hanging on.

Some of us aren't even doing that. Make no mistake, if they ask for another bailout, they'll get it. And on their own terms.

[Skink]

2. Paul Ryan has been making some calls.

Obama won't play ball.

[high density]

3. S&P: the same folks that put AAA ratings on mortgage-backed securities

They were part of the problem: Who cares what they've got to say?

[Pale Blue Dot]

13. Because we can assume that the situation is much WORSE than they're saying. nt

[Trajan]

4. Well ....

A part of me recognizes that the previous bailouts were necessary for the benefit of most the good people of the nation and of the world ....

Now I realize; sometimes idiots need to feel the smack of reality upside their metaphorical heads in order to understand their own peril ...

Maybe they need that dose of reality .... I dont know ....

[RKP5637]

5. Another financial disaster might not be recoverable leaving a country with no

resemblance to what we have now. The rest of the world is going to dump the US financially next time around.

[Newest Reality]

6. The scheme keeps getting more hilarious ...

:rofl:

... in a very tragic and real way, when it comes to the actual results we are being forced to endure.

[RKP5637]

8. Welcome to "The Twilight Zone!" n/t

[Mnemosyne]

12. The NEXT bailout? I don't think so. K&R n/t

[Hannah Bell]

14. standard & poors is a criminal organization that helped cause the financial meltdown.

who gives a damn what it says.

its administration should be in jail.