• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

U.S. Should Downgrade S&P

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Mon, 08/08/2011 - 00:18 | 1535600 Joseph Jones
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If Al Qaeda has one nuclear weapon and two peoples to destroy (USA citizens or Spaniards) which do you predict they'd choose? 

Sun, 08/07/2011 - 23:43 | 1535351 cbxer55
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Why? S & P said that if certain conditions were not met, this downgrade would occur. Those conditions were not met, and the downgrade happened. Gee, who'da thunk it? And then to boot, the losers here (obama, senate, congress,etc.) all try there best to make it out like it was S & P's fault, for doing what they said they would do in the first place.

1. They warned early in the year.

2. They needed to see 4 trillion dollars in debt reduction, and that was only a down payment, not the entire solution.

3. They reiterated when the debate got contentious.

You win some, you lose some. S & P won this one.

Sun, 08/07/2011 - 22:42 | 1535079 Plumplechook
Plumplechook's picture

Why the fuck does S&P still exist let alone think it has the right to be taken serioiusly on anything?   After being one of the main catalysts of the Great Recession,  with their tripple-A rating of toxic shit,  the entire managment of S&P should have been rounded up like pigs and shot like dogs.

As another commentater said on Friday:

"Apparently we’re supposed to care about what some idiots at some corrupt organization think about anything."

Mon, 08/08/2011 - 00:26 | 1535639 StychoKiller
StychoKiller's picture

You should read "The Big Short" by Michael Lewis, ISBN: 978-0-393-07223-5, wherein it's revealed that the sellers of CDO's figured out how to game the ratings agencies' algorithms.  The only thing they're guilty of is incompetence.

Sun, 08/07/2011 - 21:59 | 1534939 Ms. Erable
Ms. Erable's picture

An article like this probably buys the lying douchebag a seat on the last plane out.

Soundtrack courtesy of the late, great Kevin Gilbert: http://www.youtube.com/watch?v=xyTdtf0LFMk

Sun, 08/07/2011 - 21:52 | 1534903 automato
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This is a horrible movie! You know the line from the "American President" when Robin McCall: I think the important thing is not to make it look like we're panicking. 

President Andrew Shepherd: See, and I think the important thing is actually not to BE panicking. Well every time some government bozo or economics clown or wildman from omaha opens their stupid mouth they ALL look like they are panicking. I just wish they would all SHUT THE FUCK UP!

Sun, 08/07/2011 - 21:48 | 1534886 JustACitizen
JustACitizen's picture

Methodology? These guys?

It is more likely that S&P downgraded over whatever their political ideology is - or their master's...

Of course it could also be that they collect no direct fees on sovereign debt - unlike their totally awesome performance on MBS/ABS etc.

The U.S. probably deserved a downgrade - just on the basis of no real cuts and no new taxes - err I mean revenue - but perhaps S&P might have been a tad more circumspect about it.

Sun, 08/07/2011 - 21:36 | 1534826 DaveGillie
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so, the US that prints it's own money as needed, has the same chance of default as other Countries who can not,

sounds a bit ABSURD to me

Sun, 08/07/2011 - 21:24 | 1534717 wang (not verified)
Sun, 08/07/2011 - 20:59 | 1534646 gorillaonyourback
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this article is a joke,  compare new zeland and uncle sam see if that makes any sense

Sun, 08/07/2011 - 21:11 | 1534708 Ace
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You mean the fact that New Zealand had a tax surplus for 15 of the last 17 years, and the US did not?

 

Sun, 08/07/2011 - 21:06 | 1534686 IQ 145
IQ 145's picture

I'm surprised you're satisfied to call it a joke. I found myself wondering how much someone paid him to write this crap.

Sun, 08/07/2011 - 19:55 | 1534590 Derpin USA
Derpin USA's picture

S&P's involvement in the debt debate and subsequent downgrade smack of political motivation.

The question shouldn't be about whose fault this is.

It should be why S&P was involved in manufacturing the debt crisis and insisting on their downgrade even after their premise was shot to shreds.

Great article. Sure to get a lot of hateful bile spewed by the ZH crowd.

Sun, 08/07/2011 - 22:22 | 1535020 Snidley Whipsnae
Snidley Whipsnae's picture

This article stinks... Kudos to S&P for finally stating the obvious... The US debt will never be repaid, therefore how can it be rated AAA? All the whining, charts and verbiage in the world is not going to change the fact that S&P did the right thing even if they did it for all the wrong reasons. Let's get on with getting rid of the Fed, all the crooks in DC, all the bankers that are leaching the life blood from America, and build anew with regional banks that are competitive with each other and have sufficient regulation (Glass Steagle) to hold them in check when they issue too much credit and overheat the economy... Better yet, let's return to sound money, screw the fiat!

Peter Schiff has a video on Max Keiser's site that give a much more concise and accurate picture of what is going on with the down grade... and neither Schiff nor I are fans of S&P.

 

Sun, 08/07/2011 - 21:03 | 1534626 wang (not verified)
wang's picture

puke

math error or selecting from an array of options for the base

your article is straight from the adminstration's talking points

Credit to ZH for allowing  a range of opinions to be presented and if this is the best that those who are protecting the administration can come up with then they are even in deeper trouble than I would have guessed

 

 

Sun, 08/07/2011 - 21:16 | 1534734 LawsofPhysics
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Yep.  It should be abundantly clear to everyone now that the central planners are starting to turn on one another.  If only we could get them to destroy each other so that we can all get back to sound money.

Sun, 08/07/2011 - 21:08 | 1534696 IQ 145
IQ 145's picture

Yeah, exactly; as a defense it's an embarrassing.

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