Godlike Productions - Conspiracy Forum
Users Online Now: 2,570 (Who's On?)Visitors Today: 921,708
Pageviews Today: 1,338,160Threads Today: 407Posts Today: 8,092
11:54 AM


Rate this Thread

Absolute BS Crap Reasonable Nice Amazing
 

Fitch Prepares To Downgrade U.S. Credit Rating...

 
Anonymous Coward
User ID: 19964681
United States
01/15/2013 11:14 PM
Report Abusive Post
Report Copyright Violation
Re: Fitch Prepares To Downgrade U.S. Credit Rating...
Why would they downgrade a country that prints there own money
Anonymous Coward
User ID: 24975305
United States
01/15/2013 11:18 PM
Report Abusive Post
Report Copyright Violation
Re: Fitch Prepares To Downgrade U.S. Credit Rating...
Orchestrated.
Should have been junk years ago.
Anonymous Coward
User ID: 25140151
United States
01/16/2013 12:29 AM
Report Abusive Post
Report Copyright Violation
Re: Fitch Prepares To Downgrade U.S. Credit Rating...
This is a bit more serious than when Egan Jones does it...

Because Fitch, Moody's, and Standard & Poor's are the big three when it comes to banks and what bonds they can hold as securities...

Will make a huge difference in Basel III Tier I asset catagorization as well...


LONDON (AP) — The United States could lose its top credit rating for the second time from a leading credit agency if there's a delay in raising the country's debt ceiling, Fitch Ratings warned Tuesday.

Congress has to increase the country's debt limit, which effectively rules how much debt the U.S. can have, by March 1 or face a potential default. There are fears that the debate will deteriorate into the squabbling and political brinkmanship that marked the last effort to raise the ceiling in the summer of 2011. The U.S. Treasury Department warned then that it had nearly reached a point where it would be unable "to meet our commitments securely."

If Fitch does move to downgrade the US, it will join Standard & Poor's, which was so concerned by the dysfunctional 2011 debate that it stripped the U.S. of its triple A rating for the first time in the country's history. Another major ratings agency, Moody's, also has a negative view on the U.S. outlook...


[link to www.usatoday.com]

How's the hopey changey workin' out for you...
 Quoting: Saddletramp


trans_sign
 Quoting: Renegade (Me too)


In a nutshell

If Fitch downgrades U.S. Debt, that's 2 out of the big 3, that would mean the Interest that the U.S. has to pay on its debt could go up dramatically...
 Quoting: Saddletramp


If we had a free - capitalistic - treasury market (indeed markets in general), I would then entirely agree with you on the (rising interest rate issue) Saddle.

But since (our major treasury "investors"), formerly being sovereign states, are now almost entirely absent, and therefore the Fed now is (absolutely required) to be the only real player (via their Primary-Dealer-Bank surrogates at auction - if not the Fed more directly), the interest rates' rising, that (normally) would be required in a free market, are much less required so.

Unless mistaking on memory, in fiscal 2011 the Fed purchased 62% of the treasuries auctioned. In fiscal 2012, an astounding 82% of treasuries were purchased by the Fed! (this likely includes their PD's). So real investors in US treasuries, are acquiring less and less and less - thus requiring the Fed to buy more and more and more (unless they back off and let the prices come down and yields therfore, to soar, which isn't likely unless forced to...as I explain may be a potential peril, per my last paragraph).

Also, they're on all parts of the curve (short, med and long)...they're missing nothing.

Any talk of an interest rate rise (as well as the potential reality of it), personally, I believe will be due to (foreign trading partners) that need to hold USD's as foreign exchange reserves, as necessary to procure trade settlement with the US - that otherwise come out screaming on the rooftop, saying "we're not going to take it anymore" - and thus, force the Fed's hand (to offer a rise in yield), for the purpose of making the USD (marginally more attractive).

Should this come to reality...this legitimately could cause (a deeply unexpected) shock to the markets: both bond and equity. Again, this is the one real peril, that I see of a potential rate rise.

Time will tell...but key foreign traders with the USA, I just can't see putting up forever with the ongoing debasement.

Thank you for the thread.

Praise God
#Geomagnetic_Storm#
"Amateur Meteorologist"

User ID: 28088915
United States
01/16/2013 12:33 AM

Report Abusive Post
Report Copyright Violation
Re: Fitch Prepares To Downgrade U.S. Credit Rating...
This is a bit more serious than when Egan Jones does it...

Because Fitch, Moody's, and Standard & Poor's are the big three when it comes to banks and what bonds they can hold as securities...

Will make a huge difference in Basel III Tier I asset catagorization as well...


LONDON (AP) — The United States could lose its top credit rating for the second time from a leading credit agency if there's a delay in raising the country's debt ceiling, Fitch Ratings warned Tuesday.

Congress has to increase the country's debt limit, which effectively rules how much debt the U.S. can have, by March 1 or face a potential default. There are fears that the debate will deteriorate into the squabbling and political brinkmanship that marked the last effort to raise the ceiling in the summer of 2011. The U.S. Treasury Department warned then that it had nearly reached a point where it would be unable "to meet our commitments securely."

If Fitch does move to downgrade the US, it will join Standard & Poor's, which was so concerned by the dysfunctional 2011 debate that it stripped the U.S. of its triple A rating for the first time in the country's history. Another major ratings agency, Moody's, also has a negative view on the U.S. outlook...


[link to www.usatoday.com]

How's the hopey changey workin' out for you...
 Quoting: Saddletramp


glp uncle
Hardwired

User ID: 31719465
United States
01/16/2013 02:19 AM

Report Abusive Post
Report Copyright Violation
Re: Fitch Prepares To Downgrade U.S. Credit Rating...
Some nasty inflation coming to America, when all those Dollars they've been exporting for the last few decades return home.
 Quoting: Anonymous Coward 14317225


Yeah it's gonna be rough to soak all that "cash" (most of it is electronic) up...

People are gonna shit when they have to pay $10 for a loaf of bread...
 Quoting: Saddletramp


It might help the EBT crowd if their funny money was devalued.

America has the fattest poor people in the world.