US debt talks teeter on edge of collapse

[daboggeyman]

  Of course its old news we hear about it daily if they fail to work it out before any dead line what do think will follow ? Are they using scare tactics aimed at the public ?



 

White House talks to avert a disastrous early August debt default teetered on the edge of collapse late Friday as Republican House Speaker John Boehner abruptly quit the negotiations.

US President Barack Obama condemned Boehner's decision and angrily called top lawmakers to the White House for emergency negotiations at 11:00 am (1500 GMT) Saturday, warning "we have run out of time" with an August 2 deadline looming.

"I expect them to have an answer in terms of how they intend to get this thing done over the course of the next week. The American people expect action," the president said at a hastily called public appearance........................

                                                 http://news.yahoo.com/obama-press-statement-2200-gmt-220257502.html

[Salamander]

So after this passed, just an ''ok'' for raising the debt ceiling, with promised future spending cuts (which are laughable and they don't know yet really where the cuts will be..). These cuts over 10 years ($917 billion and then you had a  $1.29 trillion deficit spending in the year 2010. Maybe more this year?

So what has changed really.. sure they still got their AAA raiting, the only AAA country which has a 100% debt/gdp rating, but you can say; its nice that those 3 big rating agency's are in the US (they wont be too picky on their own country), but on the same time, they don't get enough pressure to really change things...

[daboggeyman]

So after this passed, just an ''ok'' for raising the debt ceiling, with promised future spending cuts (which are laughable and they don't know yet really where the cuts will be..). These cuts over 10 years ($917 billion and then you had a  $1.29 trillion deficit spending in the year 2010. Maybe more this year?

So what has changed really.. sure they still got their AAA raiting, the only AAA country which has a 100% debt/gdp rating, but you can say; its nice that those 3 big rating agency's are in the US (they wont be too picky on their own country), but on the same time, they don't get enough pressure to really change things...

 Didn't China drop the US credit rating? No matter you know who's getting the shaft now or ten years from now. Washington needs to be cleaned out from top to bottom. If people really gave a crap we could make a difference in what go's on there. No one will care till everything is gone and the wealthy begin to lose everything like the middle class citizens are. To damn many pet rocks are being looked after and protected . Lets see were they start cuting the national dept.

[daboggeyman]

 After checking I was right China did slightly downgrade the US credit rateing yesterday 

http://moneymorning.com/2011/08/04/china-wastes-no-time-in-u-s-credit-rating-downgrade/

http://inventorspot.com/articles/us_credit_rating_downgraded_again_chinese_credit_rating_agency

[Salamander]

Yes they did, also a German one 1 or 2 months ago but those rating agencies, the germany for example, almost nobody knows (almost no press coverage), the 3 main agency's are in the US, which will get big news coverage, this china one, will mostly bee seen as an anti american china goverment influenced warning.

Those 3 big ones make big money, and they where wrong big time before, but still they are really important?
So, it's like being drunk really, thinking I got so much beers left! what wil happen to me? sure you get some health problems, but you still got beer! where is the problem?

[daboggeyman]

 There has been talks of the US credit rating dropping in the three big credit ranking firms over the next couple of months , so for now its a wait and see if that happens.  Had both parties spent more time on a real solution and less time on some kind of power trip this whole thing could have had a more positive impact on things. Don't think anyone really knows what the long term will hold.

[daboggeyman]

United States loses AAA credit rating from S&P added to the drop from China , but dont feel its going to reflect any conserns for for the economy unless it creates more havic for the Wall Street bunch. Been one interesting week. Seen or heard noting out of Moody's Investor Service, and Fitch Ratings.

[daboggeyman]

United States loses AAA credit rating from S&P added to the drop from China , but dont feel its going to reflect any conserns for for the economy unless it creates more havic for the Wall Street bunch. Been one interesting week. Seen or heard noting out of Moody's Investor Service, and Fitch Ratings.

 Looks like we find out in a few hours if the S&P has created more problems .

[hnyman]

Looks like we find out in a few hours if the S&P has created more problems .

By saying aloud that USA is overdebted and seems to have a somewhat broken political system?

Seen from the outside, the rating decrease is not that surprising.

[daboggeyman]

  Well now Moody has sent its warning to the US , this mess isn't funny no matter were you live in the world it effect's you. More ripple effects from the 2008 bail out of AIG and Lehman Brothers as well as others in the US. Keep a watch on the bond market over the next few days. The Fed.s reported a 9.1 unemployment rate last week but others reported that the real numbers were running somewhere around 15 to 18% in the US. I sure they don't fare much better in other industrial counties.

[daboggeyman]

Looks like we find out in a few hours if the S&P has created more problems .

By saying aloud that USA is overdebted and seems to have a somewhat broken political system?

Seen from the outside, the rating decrease is not that surprising.

 With the leader ship we have had over the past few years it should have happen before now , The US spending has been a consern for many years. It has totally gotten out of control.

[daboggeyman]

 I kind of waited to see if anyone else might would post anything else in regards to all of this  , old news now but the Dow plunges more than 634 points today and other world markets fell earlier today , tomorrows another day.