S&P said that it is cutting the country's top AAA rating by one notch to AA-plus. The credit agency said that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country's debt situation.
A source familiar with the discussions said that the Obama administration feels the S&P's analysis contained "deep and fundamental flaws." Well Mr President, the depths of your complete ignorance on economic issues is deep and your decision making is totally flawed. You should fire Turbo Tim Geithner as he recently said there was no chance the U.S. credit rating would be downgraded. Speaking of firings,....the American people will give you your pink slip in November 2012.
Not only is S&P downgrading this Country's Credit Rating but they are also issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. My God, we have got to get the Socialists and Communists out of office!
S&P will downgrade the U.S. credit rating to AA if they see less reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period. And you can bet that we'll see higher interest rates, so I guess an even lower credit rating is certainly to come.
This down grade comes after S&P warned the government in April that a downgrade was probably unless the Government developed a long-term deficit reduction plan and avoided a default on the country's massive debt, over $4 Trillion, which is unprecedented in history.
S&P even stated that it was "pessimistic about the capability of Congress and the Obama Administration to bring a fiscal solution that would stabilize the government's debt anytime soon."
