News Us Credit Rating Downgraded - Global Effect Impact

[anthony]

Well, I thought it was extremely sneaky that they did this over the weekend, not during the weekdays, so that markets didn't plummet again, and instead people have a day or two to sit on it and think before making rash decisions, come Monday.

Will Wall Street plummet come Monday? Hopefully not... though I would be ignorant to say I don't think it will have some drop across the world in all markets.

Do you think its a good thing or not? It means the US will pay more interest on borrowed money, basically, saying that lending money to the US is becoming a bad risk, as the debt has constantly increased, not decreased at any point.

The military is the first point of call that needs to be cut. 20% of an entire countries budget on military, that is ridiculous to say the least. That money turned inwards would do so much good within the US for the country as a whole to rebuild and growth. No other country in the world spends any sort of money even close to that on their military. 5% would be excessive in the majority of countries.

I really hope the US can turn things around, otherwise the next decade is going to be extremely rocky for all countries concerned, yet especially more so for many within the US itself.

I near fell out of bed when hearing the S&P downgraded the US.

China certainly has lots to say about it: http://www.marketwatch.com/story/ch...ing-downgrade-2011-08-06?reflink=MW_news_stmp

 

[Kim]

The really sad thing is that it could have been avoided if only the Democrats and Republicans could have come to some kind of a compromise. The Republicans didn't want the rich to be burdened with paying taxes and the Democrats didn't want the poor and middle income people to carry more of the burden than they already are (middle income people in this country pay the majority of the taxes that are collected). Now the middle class and poor are going to suffer the most. The rich are still going to be rich though.

 

[The Albatross]

I guess the thing that gets me is that we were down graded even though we've never missed a payment. But conversely, the events of the past decade alone... and the trajectory of borrowing was rapidly increasing, I don't really see that the S & P has much choice when you look at the big picture... debt ratio to GDP. They had ample warning... and we couldn't even pass a budget... for over two years??? I'm not surprised but am really pretty damn angry. Surely don't think it's a good thing but I have to say I liked that one penny idea they had. Agree to cut one penny across the board... and then try to make a deal on freezing at this years levels for 8 years. But it was a no go. The past two "committee" recommendations were ignored completely by Geitner and the Obama administration... Republicans can't get much done with a bit more than half of one house. I am embarrassed that our President didn't lead on this... guess he was too busy planning his $40,000 a plate birthday bash.

More torn up about losing a bunch of Seal Team 6 in Afganistan than this though, and pretty rabid about Libya.

 

[The Albatross]

The FAA debacle... failing to fund it before going on a 5 week vacation... that's a $30 million dollar a day in tax revenue that they wouldn't have collected and likely won't be able to collect in arears (sp?) from the airlines who collected it. Why? Because they were squbbling over airport closures... but they had plenty of time to name a post office. They did double back and pass an emergency measure funding them now til September (when they'll be back in session). But if I ran my personal affairs the way they are running this country, my family might declare me in competent. Sheesh... behold the ineptness of 21st century politics and God help us all.

 

[anthony]

Its amusing here... as its Monday morning already here, our stock will obviously trade before America, yet as it was released during the weekend, our exchange will go into meltdown in a preemptive strike of what Wall Street will do come Monday in the US.

Will be interesting results to see the news tonight and even today here, watching what the markets do on this news.

The worst part, is that the US in the scheme of things isn't that bad now, its European countries that are failing in much greater fashion on a per capita basis from hidden debts and what not... now Italy I believe is the focus for failure to meet debt payments.

 

[BlueKitty]

It's Monday Morning here also, watching Asian market plummet and the US dollar appreciate.
Interesting where this will lead to - I predict Double Dip, exacerbated by irrational exuberance and speculation-like behavior. Yay Greenspan!

I can already hear my tuition rising...

 

[anni]

It's the stupid dam budget debacle. We've seen this coming for weeks and weeks, with a bottom line over here that's political and been building since that ubiquitous turn to the right 30 years ago. Please excuse me for going to not-market speak. No, do not properly understand the market, just what drives the dam money. Applicable plus annoying.

I still don't get it- get treated like a flaming idiot when I say so but do not care. It is indeed an impass over raising taxes on the plain old rich plus cuts ( like there could be more!!! ) for the poor, bottom line. There IS no Welfare any more, yet they keep pointing to it, like there's more to cut. 60 Minutes showed us the things- teeny little programs feeding abused children, maybe. I worked with people who took care of autistic people in a group home. They got minimum wage-zero benfits. Nothing. Guess what- the last cuts the Republicans did cut the autistic people's food stamps. Their care-takers brought food from HOME to FEED them-not lying. THIS is how bad it is- this is America-this is at the bottom of the budget. Poor, disadvantaged people who will be hurt even more, if possible. We're told to keep an eye on the market- go panic, fly to the money folks for reassurance, keep the eyes elsewhere and POOF-the dam cuts will happen. Again. The rich will be saved, again. But- I don't get it. Why?

Here in PA- a microcosm for the US-we have the natural gas companies able to fill massive, massive gaps in the budget, help the market, literally save our entire educational system and medical system via taxes. We REFUSE to tax them a nickle- say it'll cost jobs. OK. The gas is HERE - can't go get it outa the ground from China. ( the methods suck- another government kefluffle, non-regulated going to get people killed by the hundreds. ) Nope- pander to the rich, panic people about 'the market', dissasemble out schools, filling classrooms to 45 and 50 kids per classroom, completely get rid of any medical care for poor ( and really, middle class now ) people with no jobs. Poor people WITH jobs have no care.

I don't get it, like I said. It stinks from the ground up- this complete and utter line held where money is money is money and nothing else is of any import to the point where the WORLD markets can be affected and STILL noone is going to budge on a budget which might require a poor person fed once in awhile, and perhaps the uber wealthy part with something. Simplistic? Sure. Just sure as hell looks like the bottom line when all the rhetoric is over.

 

[anthony]

WOW.... the entire Top 50 companies all plummeted here today: http://www.asx.com.au

Nothing survived this... some survived better than others, but all top trading stocks plummeted in the Australian / Asian region. Mining was huge drops...

Can't wait to listen to the scoop from the guru's tomorrow morning on the news. Will be interesting to get the laymens version of this... not that its really that hard to figure out. Crap loads of countries are defaulting / close to defaulting, the US has had its credit rating downgraded, and world is all linked into one another and when one suffers these days, we all feel it, regardless of location. This is going to hurt... especially superannuation funds here, which involves EVERY Australian who works, as superannuation is compulsory here for retirement.

 

[Gamereign555]

Protesters occupying Wall Street and areas around in NYC for a couple weeks now. These protests are considered peaceful, although numerous reports and video of police brutality by certain members of the NYPD. CNN finally decided to cover the event, took long enough.

The demands of the people vary greatly but the blame for our problems is being put squarely on the shoulders of the financial institutions. As their power in the economy has radically increased, and with it their political power. That has set in motion a vicious cycle that has concentrated immense wealth, and with it political power, in a tiny sector of the population, a fraction of 1%, while the rest increasingly become what is sometimes called "a precariat" -- seeking to survive in a precarious existence. They also carry out these ugly activities with almost complete impunity.