United States tipped to lose another AAA credit rating

[dkf]

The United States will probably suffer the loss of its triple-A credit rating from another rating agency by the end of this year because of concerns over the deficit, Bank of America Merrill Lynch is forecasting.

The trigger would be a likely failure by Congress to agree on a credible long-term plan to cut the deficit.

A second downgrade – either from Moody's or Fitch – would follow Standard & Poor's downgrade in August and represent an additional blow to the sluggish US economy, Merrill said.

"The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan to cut the deficit," Merrill's North American economist, Ethan Harris, said. "We expect at least one credit downgrade in late November or early December when the super committee crashes."

http://www.guardian.co.uk/business/2011/oct/23/united-states-aaa-credit-rating

[ProfessionalLeftist]

1. That's an interesting way of getting the social security cuts

and Medicare cuts they all want.

[dkf]

2. Or pushing through rescinding the Bush tax cuts.

[Selatius]

3. It'll just make it harder for the US to borrow.

Ideally, defense spending would take the biggest cut, but there's so much corporate cash in the system that Medicare and Social Security would be cut more, I fear.

As somebody who thinks Keynesian economic policy is viable, I put high importance on the ability to exercise deficit spending in order to combat a recession or depression. It worked for FDR.

[Lint Head]

4. BoA, Merrill Lynch and the credit rating agencies are doing the bidding of the rich

fucks that want to destroy any possible semblance of hope the average person has. The big money folks hold most of the assets and they don't give a rats ass about you are me. So, either we do something about it or just bend over. What to do one may ask? Occupy the world and move your money to a credit union are just two of many other things.