US defaulting ...

G.Wood wrote:there's alcohol in that right?

Allan D wrote:Perhaps this should be renamed the Baby Shower Thread? FBers must be getting broody.

skully wrote:Forgive us, AD. Let's get this back On Topic...

G.Wood wrote:

skully wrote:Forgive us, AD. Let's get this back On Topic...

I've often wondered why those red disposable cups are so prevalant in the US but you never see them anywhere else

Allan D wrote:S&P downgrades US credit rating despite debt ceiling raise deal. Markets go into tailspin despite debt ceiling raise deal. Obama claimed it was necessary to raise the legal debt ceiling to prevent both of these events from happening which have now actually happened. Could it be that 'because of' should be substituted for 'despite' in the first two sentences?

JGK wrote:

Allan D wrote:S&P downgrades US credit rating despite debt ceiling raise deal. Markets go into tailspin despite debt ceiling raise deal. Obama claimed it was necessary to raise the legal debt ceiling to prevent both of these events from happening which have now actually happened. Could it be that 'because of' should be substituted for 'despite' in the first two sentences?

S&P placed a lot of emphasis on the faffing around that occurred to get the debt ceiling raised and the implications that government as it currently stands isn't really equipped to deal with the US's financial situation. i.e. the Tea Party nutters will fark it up for everyone.

We lowered our long-term rating on the U.S. because we believe that the
prolonged controversy over raising the statutory debt ceiling and the related
fiscal policy debate indicate that further near-term progress containing the
growth in public spending, especially on entitlements, or on reaching an
agreement on raising revenues is less likely than we previously assumed and
will remain a contentious and fitful process. We also believe that the fiscal
consolidation plan that Congress and the Administration agreed to this week
falls short of the amount that we believe is necessary to stabilize the
general government debt burden by the middle of the decade.

The outlook on the long-term rating is negative. We could lower the
long-term rating to 'AA' within the next two years if we see that less
reduction in spending than agreed to, higher interest rates, or new
fiscal pressures during the period result in a higher general government
debt trajectory than we currently assume in our base case

We also believe that the fiscal
consolidation plan that Congress and the Administration agreed to this week
falls short of the amount that we believe is necessary to stabilize the
general government debt burden by the middle of the decade.

Standard & Poor's takes no position on the mix of spending and revenue
measures that Congress and the Administration might conclude is appropriate
for putting the U.S.'s finances on a sustainable footing.

Allan D wrote:

However putting taxes up in the middle of a recession does not appear particularly Keynesian to me and is more likely to lead to a reduction, rather than an increase, in revenues.