You gotta love the ignorance of the Obama administration:
http://thehill.com/blogs/on-the-mone...-credit-rating


I've been saying for about 2 years on here that you need to get out of dollar denominated assets, wherever/whenever you can.

Now that our debt has been downgraded, it will continue to be downgraded in the future. Can't tell you when that will be or how often, but it will be.

Obviously, this will cause interest rates on homes, cars, credit cards, etc to rise. Which is going to further damage the housing market, etc.


Edit: The Obama parrots are going to be REALLY proud of him when he eliminates the mortage interest deduction in his second term if he is re-elected.

 

SSCULLY, I detect a smidge of disagreement with that idea, would that be safe to say?

What the people in D.C. don't seem to grasp is that the more they try to "fix" things the worse they get. They need to get a peek at how the real world operates and just get out of the way.

I heard today the new crisis is that the post office is talking about going belly-up.

If you need an example of the government's inability to operate in the real world I would remind you of the Mustang Ranch. They took it over for un-paid taxes and tried to keep it going..........it went belly-up too. Couldn't even run a ***** house and make money?

But then again we have congressmen who are worried about important things like Guam capsizing from too many people on the island!LORD HELP US!!!!

 

The World is one big mental institution and the leaders are the patients in charge of the other patients.

We're all insane and I am in a Matrix.

A nice warm cup of ignorance will help me sleep.

 

This might actually be a good thing. It is going to suck in the short term (always does when cutting spending), but if it turely gets our government back on track, then it is good. What we had with Clinton was truely on track it was only in surplus becaue of the .com buble.

 

It is to be 50% GOP, 50% Dem, and keep in mind they are to recommend additional cuts, not taxes.

The Senate and the POTUS made a mockery of the budget process, and violated the rules on how budget work is to be done.
Don't hear that one from the MSM, do you ?

This is what I was getting at, a bunch of smaller stalemates rather then one large one. This is the problem with spending caps on the major categories, not individual items as the House wanted.
An example of the major area is defense, not even to category such as 700, it is the summation of the 5 major areas in that heading where the cap is at.

I do like how the law the 111th congress passed, came back to bite the US in the rear ( yes, I know big shock, the 111th congress screwed the US yet again ).
The 111th congress was placing blame for what happened with loans, and decided to put part of that blame and future accountability on the rating houses.
Standard & Poor’s was just following the laws enacted on the ratings for financial instruments, else they could be held accountable for the aftermath.

 

You could say that.
It just kills me how the collective stupidity of a group of people is greater than the sum of it's individual parts.

You are correct, no serious work was going to be done on this.
The House's recommendation ( the plan the MSM misrepresented ) was the closest to making the 34% across the board cuts needed to upright things.

The Senate ( without offering any plan to debate with ) grabbed headlines and vowed to vote anything down that the House recommended.

We have Joe the nitwit as the president of the Senate, sticking his non-knowing nose in there.
I guess his idea of a beer summit in the rose garden was a non starter.

Could not have said it better myself :"they need to get a peek at how the real world operates"
Thing is they are taking the side of the real world cases as those who run up bills galore, and declare bankruptcy, not the responsible part that always spends less than they make.

This one comes up every few years, it is nothing new.
The MSM is using this as the cover story so they do not have space to report on the Senate & POTUS's trashing of the budget process.

The voting population needs to stop taking the word of the MSM, and do their own research. Thing is, these are also the same ones that a 34% cut would impact the most.

 

Less we forget, he spent that unplanned tax revenue increase, rather than use it to pay down debit.
I really like the $ 1B that went to the housing plan ( a chicken in every pot, and a house for every pot ) was not tax payer's money... Where did it come from then, did the US Govt get a part time job ?

 

Another 'new' crisis is the Government Sponsored Enterprise of Fannie Mae.

Just announced they lost another $2.9 billion last quarter. Fannie has lost money in 15 of the last 16 quarters.

The 'new' story is they are needing another $5 billion bailout, on top of the $100+ billion they have already received.

 

Here is a video from Aprl, 2011. Geitner is asked yes or no, is there a risk the US will have its credit rating downgraded. His answer: NO.

http://www.youtube.com/watch?v=q7Z0L-NYFlE

The interview was with Fox Business News, so I'm sure many forum members will claim it is faux, lol.

Time to start the pool on how long Turbo Timmy will remain at Treasury.

 

That would be taking a bet on who wins in 2012.
1/3rd the Senate is up for election, The House up for election again, and the White House.

I do not recall how many of class 1 are Democrats to know if this will help or hurt the probability.
Simple probability would state that ~ 50% of Class 1 are Dem, but this is supposition based upon the close majority that the Senate has at the moment ( for the 111th & 112th congress ).

Unless there is a shift in control for the upper house and the lower house stays as is, there is little chance they can get another person to be confirmed.
The White House has had too many rats leaving the sinking ship to start the process themselves.
If the White house changes, the ROI on the odds will not be worth placing a bet ( 1.2:1 ). Come election night after the results, he would be knocking on the door at the IMF looking for some more tax free work.

 

Don't dismiss the possibility that he will resign, or that his soulmate Obama will throw him under the bus.

 

In 2012, there are 21 Dems + the 2 Independent/Socialist seats up for election. Of these 23, six Senators have already indicated they are retiring, leaving 1 Socialist + 16 Democrat incumbents seeking re-election.

Only 10 Republican senators finish their term in 2012. Of these, two Senators are retiring, and eight are running again.

The individuals retiring and up for re-election are here:
http://en.wikipedia.org/wiki/United_...lections,_2012


Bottom line is it is very likely the Republicans will control both houses starting January, 2013. I'll guess it will be a 52 - 48 division.

 

Turbo Tax Tim has too big of an ego to let go.
Look at the interview, he looked with conviction and said the rating would not get lowered.
I guess he thought S&P and the other houses are going to give the US govt a pass on following the new law
Think again, Dodd - Frank made the rule, and grabbed headlines about how S&P will burn if they do this again... Oops, called that one wrong.

POTUS cannot afford to keep changing the positions, he already looks weak when the staff are leaving on their own to become mayor of Chicago, and go back to Univ of IL to teach Econ, etc.

To toss him under the bus would to admit making a mistake. He has yet to do that.

 

I still find it amazing that Obama is blaming S&P for the downgrade, instead of blaming the politicians. He missed the point of the 2010 elections and he is missing the same point being made by S&P. QUIT SPENDING, GET THE FINANCIAL HOUSE IN ORDER. We tried to send that message last year and S&P is sending that same message this year, but Obama is to fricking stupid to hear it. His party was unwilling/unable to pass a budget. When the fiscal conservatives got in office they started complaining that too much was being cut. Hey idiots, what did you think would happen when a crap load of fiscal conservatives are elected. They cut spending. The people told the government to quit spending and come back to sanity. Now a credit rating agency is telling the president the same thing and he still doesn't get it. What will it take? Do all of the credit agencies have to downgrade our rating, before he quits throwing tax money out the window?

 

Probably^