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(The Hill)   Moody's Investors Service has downgraded U.S. credit worthiness to 'Banana Republic'   (thehill.com) divider line 121
    More: Scary, Moody's Investors Service, credit worthiness, Wwiii, tax cuts, treasuries, national debt, U.S., RSS reader  
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8780 clicks; posted to Main » on 14 Dec 2010 at 12:58 PM (3 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2010-12-14 11:11:20 AM
I generally don't trust Moody's after how they behaved during the property boom, but this is pretty accurate.

If we weren't the reserve currency I might actually panic. Our ability to address fiscal problems is downright pathetic. We're like a teenager trying to live on a $20 allowance but we keep stealing our parent's credit card and hoping they don't find out.
 
2010-12-14 11:56:29 AM
This shat needs to be hammered home.

Stupid arse partisans keep chanting platitudes how tax increases will destroy the economy [citation needed], especially tax cuts on the rich [citation needed]. Yet no one talks about how a perceived unwillingness of the US to raise taxes could affect our credit rating, and how even the smallest downgrade could severely hurt us.
 
2010-12-14 12:14:49 PM
Adding $900B to the deficit is bad when it won't generate revenue or jobs? Who knew?

Just how farking stupid do you have to be to look at a $1.4T deficit and go "Do you know what this needs? To be pushed to almost $2T." It appears the answer is 'be a Republican or be Obama.'

This is a very, very bad deal and it needs to die.
 
2010-12-14 12:32:41 PM
I'll be more concerned when it's downgraded to Old Navy or Spencer's.
 
2010-12-14 12:49:35 PM
gee, good thing we gave a tax break to the top wage earners then.
 
2010-12-14 01:02:43 PM
Still seems a bit high.
 
2010-12-14 01:04:07 PM
Wait... did the article say they actually downgraded or that the tax cut deal would risk a downgrade?
 
2010-12-14 01:04:15 PM
Damn liberals and their welfare spending.
 
2010-12-14 01:05:42 PM
GAT_00: Adding $900B to the deficit is bad when it won't generate revenue or jobs? Who knew?

Just how farking stupid do you have to be to look at a $1.4T deficit and go "Do you know what this needs? To be pushed to almost $2T." It appears the answer is 'be a Republican or be Obama.'

This is a very, very bad deal and it needs to die
. I don't like the current tax rates and think they need to go up.

FTFY

/At least be honest
//Posted from my Lamborghini, because according to you, I'm "rich"
 
2010-12-14 01:05:59 PM
Moody's is clearly unpatriotic libtard entity since it cannot support hero tax cut extensions for the bootstrappiest of citizens.
 
2010-12-14 01:06:12 PM
P. Moskowitz ecstatic. Edward Bernays approves.
 
2010-12-14 01:06:36 PM
This is what happens when ideology gets in the way of government. The mantra of "cutting taxes always increases tax revenue" is something even the so-called "free market" doesn't agree with.

Economics is easily the most ideologically-driven area of study out there, and although it can do some really nifty things with vote prediction etc I almost never agree with its application to the actual economy.
 
2010-12-14 01:08:30 PM
So like the US guv is now the holder of a sub prime mortgage. Seems about right.
 
2010-12-14 01:09:08 PM
The_Gallant_Gallstone: Wait... did the article say they actually downgraded or that the tax cut deal would risk a downgrade?

Risk a downgrade, not an actual downgrade.
 
2010-12-14 01:09:11 PM
Rashnu: Edward Bernays approves.

Nothing's obscure on Fark... I found his "Propaganda" in a second-hand bookstore like 7 years ago.

Carousel Beast: //Posted from my Lamborghini, because according to you, I'm "rich"

Lemme guess... you make 175K a year and consider yourself "middle class"?
 
2010-12-14 01:10:09 PM
NuttierThanEver: I'll be more concerned when it's downgraded to Old Navy or Spencer's.

Came to make a performance fleece joke and saw this instead. You win, sir.
 
2010-12-14 01:10:26 PM
Estate taxes (calculated in devalued dollars) need to be raised. After all You didn't work all your life to earn the wheelbarrows full of worthless dollars we now say your inheritance is worth. So turn it over to your betters.
 
2010-12-14 01:10:48 PM
Who cares what Moody's says? They incorrectly rated bad bonds before the crisis as AAA and AA material, why would they be more correct now?
 
2010-12-14 01:11:02 PM
impaler: This shat needs to be hammered home.

Stupid arse partisans keep chanting platitudes how tax increases will destroy the economy [citation needed], especially tax cuts on the rich [citation needed]. Yet no one talks about how a perceived unwillingness of the US to raise taxes could affect our credit rating, and how even the smallest downgrade could severely hurt us.


It's all good... we'll just borrow more to cover the extra interest.
 
2010-12-14 01:11:25 PM
NewportBarGuy: I generally don't trust Moody's after how they behaved during the property boom, but this is pretty accurate.

Moody's has zero credibility and either they're trying to send Washington a transparent message and/or rebuild their squandered rep by trashing the government.

U.S. bonds will NOT default, especially with federal taxes as percentage of GDP is at 60-year lows. Both parties certainly seems to want to push our credit limit to the brink of what investors will tolerate, but in the end solving the deficit problem really is a matter of raising taxes. That won't happen until the dumbass "I want everything for free" voters finally grow up and realize it's a problem.

Politicians can't face the situation like grown-ups until the voters do. It's fun to pick on politicians but blaming them for our collective short-sighted selfishness isn't going to fix the deficit.
 
2010-12-14 01:12:56 PM
Pretty soon we're going to have an aircraft carrier group repossessed.
 
2010-12-14 01:14:21 PM
The_Gallant_Gallstone: Rashnu: Edward Bernays approves.

Nothing's obscure on Fark... I found his "Propaganda" in a second-hand bookstore like 7 years ago.


Better not be! He used his propaganda techniques to promote bacon for gods sake!
 
2010-12-14 01:14:36 PM
vernonFL: Pretty soon we're going to have an aircraft carrier group repossessed.

Now that would be a good episode of Operacion Repo
 
2010-12-14 01:15:43 PM
Well, as long as they can still buy the upgrades to pop the balloons, all is fine.


/darn monkeys
//obscure?
 
2010-12-14 01:15:59 PM
Uninformed rant 1: So what you're saying is, I should lobby my congresspersons for free bananas? But... Bananas are what monkeys eat, and my congresspersons don't believe we came from monkees and may therefore not request bananas for our district. Do I have to pull myself up by the banana peels and acquire my own bananas, or can I get "banana stamps"?

Uninformed rant 2: I am not part of any "banana republic". I am part of a banana democracy thankyouverymuch.

/bananas
 
2010-12-14 01:18:17 PM
$600bn and no check for Moodys to give us a better rating?


This is why government needs businessmen with experience running things.


/I bet if Corzine was president this wouldn't be an issue
//thats right I said businessMEN...now go make me a sammich
 
2010-12-14 01:20:43 PM
Ya but, tax cuts.
 
2010-12-14 01:20:51 PM
dragonchild: NewportBarGuy: I generally don't trust Moody's after how they behaved during the property boom, but this is pretty accurate.

Moody's has zero credibility and either they're trying to send Washington a transparent message and/or rebuild their squandered rep by trashing the government.


Or, they actually think that reducing taxes and increasing spending when you have a record deficit might have negative repercussions for the fiscal situation of the government. I highly doubt they sat around saying "how can we make up for screwing up on subprime - I know, let's threaten to downgrade the U.S.!"

U.S. bonds will NOT default, especially with federal taxes as percentage of GDP is at 60-year lows.

They won't default because we can print as many dollars as we want and our debt is denominated in dollars. Actual default is impossible The potential problem is devaluation of the currency.

Both parties certainly seems to want to push our credit limit to the brink of what investors will tolerate, but in the end solving the deficit problem really is a matter of raising taxes. That won't happen until the dumbass "I want everything for free" voters finally grow up and realize it's a problem.

Politicians can't face the situation like grown-ups until the voters do. It's fun to pick on politicians but blaming them for our collective short-sighted selfishness isn't going to fix the deficit.


THIS! Nothing to add or amend.
 
2010-12-14 01:22:29 PM
dragonchild: It's fun to pick on politicians but blaming them for our collective short-sighted selfishness isn't going to fix the deficit.

Winnar!
 
2010-12-14 01:22:42 PM
good thing we just gave away $900 billion in unfunded tax cuts which won't create many (if any) jobs in america while still fight two farking wars.

/oh there will be jobs created...in china.
 
2010-12-14 01:25:04 PM
Headline: "Moody's Investors Service has downgraded U.S. credit worthiness to 'Banana Republic'"

FTFA: "Moody's Investors Service said [...] the tax-cut deal [...] jeopardizes the Aaa credit rating"

Misleading headlines?

[welcome_to_fark.jpg]


P.S. Aaa is the highest you can get, it's what the US is currently rated
 
2010-12-14 01:25:28 PM
Debeo Summa Credo: Or, they actually think that reducing taxes and increasing spending when you have a record deficit might have negative repercussions for the fiscal situation of the government. I highly doubt they sat around saying "how can we make up for screwing up on subprime - I know, let's threaten to downgrade the U.S.!"

There was a decent article floating about that compared us to the Spanish Empire when it went bankrupt in 15something.
 
2010-12-14 01:26:16 PM
dragonchild: That won't happen until the dumbass "I want everything for free" voters finally grow up and realize it's a problem.

THIS

Once the economy recovers a bit more we need to raise taxes some and cut spending across the board. If we cherry pick sacred cows then nothing will happen.

I prefer spending cuts before increasing taxes, politicians and voters are no better than teenaged girls with daddy's credit card. No point in sending more money to DC until they get spending under control.
 
2010-12-14 01:28:08 PM
crazytrpr: Once the economy recovers a bit more we need to raise taxes some and cut spending across the board. If we cherry pick sacred cows then nothing will happen.

The fear of raising taxes is the biggest sacred cow out in the pasture.
 
2010-12-14 01:28:19 PM
I see Moody's is trying to regain some credibility.

Too late
 
2010-12-14 01:29:03 PM
Who cares if the US goes broke? We have a shiatload of guns. We'll just conquer who has the money.
 
2010-12-14 01:29:07 PM
Raise MY taxes? Not in amurica. Raise the other guy's taxes.
 
2010-12-14 01:30:20 PM
i296.photobucket.com

What would you cut?
 
2010-12-14 01:31:00 PM
Penman: Damn liberals and their welfare spending.

Uh, yeah, how dare we do something that is specfically called for in the constitution. Check it. It's the very first power grated to the legislature.
 
2010-12-14 01:31:40 PM
Rising taxes, or extending tax cuts, it doesn't matter any more.
The damage is done, and any solution plays into their hands.

For our corrupt handlers, who have made us their indentured slaves, it's a WIN/WIN no matter what we do..

Vote Pitchforks & Torches in 2012
 
2010-12-14 01:32:44 PM
Jacobin: I see Moody's is trying to regain some credibility.

Too late


Nah, they are just pissed that Dodd-Frank will reign in their "Stick your finger in the air" analysis approach.
 
2010-12-14 01:33:32 PM
The_Gallant_Gallstone: crazytrpr: Once the economy recovers a bit more we need to raise taxes some and cut spending across the board. If we cherry pick sacred cows then nothing will happen.

The fear of raising taxes is the biggest sacred cow out in the pasture.


We are on the left side of the laffer curve right now, so we can afford to raise them a bit 3-5 points. Problem is for ever dollar sent the farking pols spend $1.2 to appease their mouth breathing constituents. When revenue drops off for economic reasons oh nos we needs more money!!

No tax increase until we start cutting.
 
2010-12-14 01:38:48 PM
StopLurkListen: What would you cut?

Social security and welfare don't appear on that chart, because they don't count as "discretionary". They're the biggest pieces of that pie.
 
2010-12-14 01:40:00 PM
aearra: Raise MY taxes? Not in amurica. Raise the other guy's taxes.

The opposite is actually the real problem. You have a bunch of working-class brainwashed idiots that insist that the rich should get richer and the poor (working class) should get poorer. The Bush tax cuts cost $1.8 trillion, and even the conservative Heritage Foundation says they created at most $450 billion in economic stimulus. If a corportation spent $1 million on an advertising campaign that resulted in $250,000 in additional sales, that would be a miserable failure.

The Bush tax cuts were a disaster for our country. Anyone pushing for tax cuts for the wealthiest 2% that isn't in the top 2% themselves is a complete idiot!
 
2010-12-14 01:42:14 PM
plewis: Jacobin: I see Moody's is trying to regain some credibility.

Too late

Nah, they are just pissed that Dodd-Frank will reign in their "Stick your finger in the air" analysis approach.


that's so not fair. it wasn't a "stick your finger in the air" analysis. it was a "shut up and say 'AAA' because the client is paying us a lot of cash to say 'AAA' so you're god damn right that's 'AAA' don't even ask the banks what's in the bonds" analysis.
 
2010-12-14 01:42:47 PM
StopLurkListen: What would you cut?

Here are treasuries' numbers
Link (new window)
 
2010-12-14 01:43:23 PM
I live in the number 1 taxed state in the country. We have had declining student enrollment for over a decade. Businesses are leaving, never to be replaced. We have idiots like Bernie Sanders preaching that we have to increase taxes even more to fix everything. At the same time, he refused to support a bill to reduce earmarks.

Until idiots get spending under control, increasing taxes is just stupid. You are punishing hard working people and all those they employ to treat a symptom instead of fixing the problem.

Fark hates people who work. You cry about how much the tax cut to the wealthy will "cost", yet not even once will you ask how much it "costs" to have 50% of the population not paying a single goddamn dime in federal income tax. Hypocrites.
 
2010-12-14 01:45:13 PM
Moody's doesn't exactly have a stellar reputation but they might be right about this one. Giving tax holidays to the uber rich and big inheritance recipients is about as stupid as giving farm subsidies to someone living in a Manhattan high rise.
 
2010-12-14 01:45:50 PM
crazytrpr: I prefer spending cuts before increasing taxes, politicians and voters are no better than teenaged girls with daddy's credit card. No point in sending more money to DC until they get spending under control.

Most of the spending is in the form of special interest giveaways, politically powerful subsidies, "defense" spending, and entitlement programs. These are all "sacred cows". The pork projects that get all the attention look big compared to our paychecks, but as a percentage of total spending they're about 10% all combined. We're talking thousands of projects. They're also concessions as part of the cost of doing politics in a democracy. I'm not saying they're good, but getting knives out over this project or other that will be fiercely defended for what amounts to 0.002% of the budget isn't a productive use of time.

The politicians aren't out of control; we are. WE will vote out any politician who places fiscal discipline over debt-fed giveaways. The last Presidential candidate who campaigned on debt reduction was Al Gore -- remember him? We hated him. No, we want our big-ass weapons and our "fark you" geopolitics and our social security and healthcare and mortgage interest deduction and we want it all but if we pay any taxes we'll biatch and scream about rising up and lynching the very people we elected to fark up the budget in the first place.

"teenaged girls with daddy's credit card"? THEY are daddy's credit card. They control the budget and the money. WE are the "teenaged girls". We want it all and our only concept of "compromise" is to cut taxes AND increase spending because any politician who either increases taxes OR decreases spending will get vilified, threatened and eventually voted out. And then we go back to biatching about the deficit.

I don't like politicians so please don't force me to defend them any further, but this deficit problem is NOT their fault. The voters own it, 100%.
 
2010-12-14 01:46:56 PM
NewportBarGuy "I generally don't trust Moody's after how they behaved during the property boom, but this is pretty accurate."

Pretty much this.

I don't normally advocate shooting the messenger, but in this case, I wouldn't object to taking all the messenger's worldly possessions and de-licensing him.

It'd help our credit rating a teensy bit, so they shouldn't mind.
 
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