US loses its AAA credit rating - Standard and Poor (CNN)

http://money.cnn.com/2011/08/05/news/eco...&hpt=hp_t1

NEW YORK (CNNMoney) -- Credit rating agency Standard & Poor's on Friday downgraded the credit rating of the United States, stripping the world's largest economy of its prized AAA status.

In July, S&P placed the United States' rating on "CreditWatch with negative implications" as the debt ceiling debate devolved into partisan bickering.

To avoid a downgrade, S&P said the United States needed to not only raise the debt ceiling, but also develop a "credible" plan to tackle the nation's long-term debt.

In its report Friday, S&P ruled that the U.S. fell short: "The downgrade reflects our opinion that the ... plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics."

S&P also cited dysfunctional policymaking in Washington as a factor in the downgrade. "The effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges."

Rating agencies -- S&P, Moody's and Fitch -- analyze risk and give debt a "grade" that reflects the borrower's ability to pay the underlying loans.

The safest bets are stamped AAA. That's where U.S. debt has stood for years. Moody's first assigned the United States a AAA rating in 1917.

In the days after lawmakers managed to strike a debt-ceiling deal, the two other major rating agencies have both said the deficit reduction actions taken by Congress were a step in the right direction.

On Tuesday, Moody's said the United States will keep its sterling AAA credit rating, but lowered its outlook on U.S. debt to "negative."

Even after a downgrade, the United States will likely still be able to pay its bills for years to come and remains a good credit risk.

A downgrade really just amounst to one agency's opinion. Federal Reserve Chairman Ben Bernanke articulated that view in April when S&P placed the United States on credit watch. "S&P's action didn't really tell us anything," Bernanke said. "Everybody who reads the newspaper knows that the United States has a very serious long-term fiscal problem."

Investors have limited options for making safe investments, and Treasuries are effectively as liquid as cash. And other big countries have been downgraded and were still able to borrow at low rates.

At the same time, some experts warn that a downgrade could gum up the banking system and ripple out onto Main Street. Treasuries are used as collateral in many transactions between financial institutions and grease the skids of lending.

Consumers and investors could feel the impact of a downgrade. Interest rates on bonds could rise, and rates on mortgages and other types of loans along with them.

Government-backed agencies like Fannie Mae and Freddie Mac may also be downgraded. It's also possible that some state and local governments could also face a downgrade.

And investment decisions would become complicated for large institutional investors that are required to hold highly-rated securities. To top of page

Thanks a lot partisanship-happy Washington.

Damn. Sucks for US people wanting to buy houses and such. I guess it works in my favour if I travel there next year, though. But still sadface for innocents.

Big thanks to the U.S. government!

As an American, I kinda figured this would happen.

Most Americans felt that this was a manufactured crisis. Dems and Reps stick to their guns until the last second, broker a deal that the general public doesn't like, and then claim victory for their party's side. It's totally dysfunctional. The last I checked, according to Gallup, Congressional approval rating stood at an abysmal 25%. Yes, that's how much the public hates Congress. Politicians pander to the middle for votes during a voting cycle but quickly go back to hardcore dem/rep once in office. There's no room for moderates in Washington anymore, and there hasn't been for at least the past 30 years.

High Five Republicans!

Thank god billionaires still have their low taxes now! Because, lol, who cares about all lazy non-billionaires suckers and your own country's future?

S&P PDF released about the issue: http://www.standardandpoors.com/servlet/...lue3=UTF-8

The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and
Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.

Now people believe what I'm talkin' about when I give my reasons for moving to Korea. At least they'll hold off their capitalistic fate until I die (hopefully).

It's not as bad as it sounds, at least right now. The other two credit agencies still have us at AAA, so, as long as congress comes up with some plan, however unlikely based on the recent circumstances, we can bounce back on this.

Our stocks are going to plummet again .

It's not as bad as it sounds, at least right now. The other two credit agencies still have us at AAA, so, as long as congress comes up with some plan, however unlikely based on the recent circumstances, we can bounce back on this.

True, AA+ isn't that bad...

http://en.wikipedia.org/wiki/List_of_cou...dit_rating

Sorted on rating + alfabetical name

Country	Rating	Outlook	Date
Australia	AAA	Stable	Jul 2011
Austria	AAA	Stable	Jul 2011
Canada	AAA	Stable	Jul 2011
Denmark	AAA	Stable	Jul 2011
Finland	AAA	Stable	Jul 2011
France	AAA	Stable	Jul 2011
Germany	AAA	Stable	Jul 2011
Guernsey	AAA	Stable	Jul 2011
Hong Kong	AAA	Stable	Jul 2011
Isle of Man	AAA	Stable	Jul 2011
Liechtenstein	AAA	Stable	Jul 2011
Luxembourg	AAA	Stable	Jul 2011
Netherlands	AAA	Stable	Jul 2011
Norway	AAA	Stable	Jul 2011
Singapore	AAA	Stable	Jul 2011
Sweden	AAA	Stable	Jul 2011
Switzerland	AAA	Stable	Jul 2011
United Kingdom	AAA	Stable	Jul 2011
==================	=====	============	=======
Belgium	AA+	Negative	Jul 2011
New Zealand	AA+	Stable	Jul 2011
United States of America	AA+	Negative	Aug 2011
==================	=====	============	=======
Abu Dhabi	AA	Stable	Jul 2011
Bermuda	AA	Stable	Jul 2011
Kuwait	AA	Stable	Jul 2011
Qatar	AA	Stable	Jul 2011
Slovenia	AA	Negative	Jul 2011
Spain	AA	Negative	Jul 2011
==================	=====	============	=======
China	AA-	Stable	Jul 2011
Japan	AA-	Negative	Jul 2011
Saudi Arabia	AA-	Stable	Jul 2011
Taiwan	AA-	Stable	Jul 2011
==================	=====	============	=======
Chile	A+	Positive	Jul 2011
Italy	A+	Negative	Jul 2011
Slovak Republic	A+	Stable	Jul 2011
==================	=====	============	=======
Andorra	A	Negative	Jul 2011
Czech Republic	A	Stable	Jul 2011
Ras Al Khaimah	A	Stable	Jul 2011
Estonia	A	Positive	Jul 2011
Israel	A	Stable	Jul 2011
South Korea	A	Stable	Jul 2011
Malta	A	Stable	Jul 2011
Oman	A	Watch Negative	Jul 2011
Trinidad and Tobago	A	Stable	Jul 2011
==================	=====	============	=======
Aruba	A-	Negative	Jul 2011
Botswana	A-	Stable	Jul 2011
Malaysia	A-	Stable	Jul 2011
Poland	A-	Stable	Jul 2011

Rest is BBB+ or below

As people said, AA+ isn't that much worse, thankfully. Once it falls below AA or AA-, then we should run around like chickens with our heads chopped off.

Thanks for the list Devil. Interesting, indeed.

Thanks for listing them alfabetically, Devil. It made finding Canada much easier. AAA, bitches.

At any rate, did you know that CAD has been worth more than USD for quite some time? It's sad. 1 USD used to be worth like 1.10 CAD for so long it even got printed on millions of books.

Nice thing about the dollar tanking is that it helps the American economy grow, it's easier for you guys to export and to compete with imports.

Canadians get ripped off on stuff from America, cause we still pay the same price (in $CND) which is about 10% higher.

True, AA+ isn't that bad...

http://en.wikipedia.org/wiki/List_of_cou...dit_rating

Sorted on rating + alfabetical name

Country	Rating	Outlook	Date
Australia	AAA	Stable	Jul 2011
Austria	AAA	Stable	Jul 2011
Canada	AAA	Stable	Jul 2011
Denmark	AAA	Stable	Jul 2011
Finland	AAA	Stable	Jul 2011
France	AAA	Stable	Jul 2011
Germany	AAA	Stable	Jul 2011
Guernsey	AAA	Stable	Jul 2011
Hong Kong	AAA	Stable	Jul 2011
Isle of Man	AAA	Stable	Jul 2011
Liechtenstein	AAA	Stable	Jul 2011
Luxembourg	AAA	Stable	Jul 2011
Netherlands	AAA	Stable	Jul 2011
Norway	AAA	Stable	Jul 2011
Singapore	AAA	Stable	Jul 2011
Sweden	AAA	Stable	Jul 2011
Switzerland	AAA	Stable	Jul 2011
United Kingdom	AAA	Stable	Jul 2011
==================	=====	============	=======
Belgium	AA+	Negative	Jul 2011
New Zealand	AA+	Stable	Jul 2011
United States of America	AA+	Negative	Aug 2011
==================	=====	============	=======
Abu Dhabi	AA	Stable	Jul 2011
Bermuda	AA	Stable	Jul 2011
Kuwait	AA	Stable	Jul 2011
Qatar	AA	Stable	Jul 2011
Slovenia	AA	Negative	Jul 2011
Spain	AA	Negative	Jul 2011
==================	=====	============	=======
China	AA-	Stable	Jul 2011
Japan	AA-	Negative	Jul 2011
Saudi Arabia	AA-	Stable	Jul 2011
Taiwan	AA-	Stable	Jul 2011
==================	=====	============	=======
Chile	A+	Positive	Jul 2011
Italy	A+	Negative	Jul 2011
Slovak Republic	A+	Stable	Jul 2011
==================	=====	============	=======
Andorra	A	Negative	Jul 2011
Czech Republic	A	Stable	Jul 2011
Ras Al Khaimah	A	Stable	Jul 2011
Estonia	A	Positive	Jul 2011
Israel	A	Stable	Jul 2011
South Korea	A	Stable	Jul 2011
Malta	A	Stable	Jul 2011
Oman	A	Watch Negative	Jul 2011
Trinidad and Tobago	A	Stable	Jul 2011
==================	=====	============	=======
Aruba	A-	Negative	Jul 2011
Botswana	A-	Stable	Jul 2011
Malaysia	A-	Stable	Jul 2011
Poland	A-	Stable	Jul 2011

Rest is BBB+ or below

Remind me to invest in Estonia or Chile.

At any rate, did you know that CAD has been worth more than USD for quite some time? It's sad. 1 USD used to be worth like 1.10 CAD for so long it even got printed on millions of books.

Yes, I am quite aware. It has been annoying me a lot. Games are a lot more here for some reason, it doesn't make any sense.

Is that why you frequent pawn shops?

No, you can't find old games anywhere else. EB Games barely sells PS2 games now, let alone anything lesser and specialty shops price to eBay standards. Pawn shops just standard price all games regardless of intrinsic value.

I don't care about paying full price for new stuff but when our economy is doing better than the US's our products should cost less.

Lol Brazil is BBB- and is one of the world's emerging economies. As my work buddy said, I just wanna watch the world burn as the world changes drastically in these years to come.

True, AA+ isn't that bad...

http://en.wikipedia.org/wiki/List_of_cou...dit_rating
-snip-

I am surprised Malaysia is on that list.