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Fitch Issues Another Rating Warning For AmericAAA

Tyler Durden's picture





 

With precisely one month left until the early bound of the debt ceiling crunch and a possible US government shut down and/or technical default, and with M.A.D. warnings from the president and treasury secretary doing nothing to precipitate a sense of urgency (which will not arrive until there is a 20% market drop, so far consistently delayed but which will eventually happen), here comes the most toothless of rating agencies, French Fitch which somehow kept its mouth shut over the past 18 months, when US debt rose by over $2.1 trillion and debt to GDP hit 103%, shaking a little stick furiously, no doubt under guidance by its corporate HoldCo owners: French Fimilac SA.

From Reuters:

There is a material risk the United States would lose its triple-A if there is a repeat of 2011 wrangling over raising the country's self-imposed debt ceiling, rating firm Fitch said on Tuesday.

 

"If anything the pressure on the U.S. rating is increasing," Fitch's head of sovereign ratings David Riley said at a conference hosted by the firm.

 

"If we have a repeat of the August 2011 debt ceiling crisis we will place the U.S. rating under review. There will be a material risk of the U.S rating coming down," he added.

Oh no: not "under review" and anything but the dreaded material risk that the French rating agency will finally catch up to S&P on the US rating with only n 18 month delay. Anything but that...

 


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Tue, 01/15/2013 - 08:50 | Link to Comment blown income
blown income's picture

What is America?

Tue, 01/15/2013 - 08:57 | Link to Comment TerminalDebt
TerminalDebt's picture

OMG....If you stop borrowing we'll lower your debt rating.

Tue, 01/15/2013 - 09:00 | Link to Comment stocktivity
stocktivity's picture

It's all Bullshit!!!

Tue, 01/15/2013 - 09:07 | Link to Comment JPM Hater001
JPM Hater001's picture

Careful or I will put your bullshit under review.

Tue, 01/15/2013 - 10:24 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Obama thinks he's Paris Hilton playing with daddy's credit cards.

 

Pay your bills bitchez........cause tomorrows party we have planned is going to be epic.

 

I luvs me a good party.

Tue, 01/15/2013 - 09:29 | Link to Comment Rainman
Rainman's picture

Oblameo will prosecute Fitch for unAmerikanism and all will be well for the $ 22 T debt extravaganza. Forward, komrades !

Tue, 01/15/2013 - 10:16 | Link to Comment FreedomCostsaBu...
FreedomCostsaBuck-o-Five's picture

'Oblameo'
Good one, Rainman

Tue, 01/15/2013 - 09:01 | Link to Comment HoofHearted
HoofHearted's picture

Egan-Jones is the only credit rating agency with any balls...or any credibility.

Tue, 01/15/2013 - 09:06 | Link to Comment Cult_of_Reason
Cult_of_Reason's picture

Fitch: "...very likely prompt a downgrade even as debt obligations continued to be met."

 

"With no legal authorisation for net debt issuance, the Treasury would be forced to immediately eliminate the deficit - a fiscal contraction twice as great as the recently avoided 'fiscal cliff' - by delaying payments on commitments as they fall due. It is not assured that the Treasury would or legally could prioritise debt service over its myriad of other obligations, including social security payments, tax rebates and payments to contractors and employees. Arrears on such obligations would not constitute a default event from a sovereign rating perspective but very likely prompt a downgrade even as debt obligations continued to be met."

 

Tue, 01/15/2013 - 08:53 | Link to Comment kliguy38
kliguy38's picture

TAKE THAT!! you lil beasty boys...............like it mean shit .........but once the Germans realize they have no gold.....then the shit will hit the fan

Tue, 01/15/2013 - 09:27 | Link to Comment TotalCarp
TotalCarp's picture

Bullish!!!

Tue, 01/15/2013 - 08:57 | Link to Comment LongSoupLine
LongSoupLine's picture

Fuck you Fitch...we haven't been AAA in decades.

Fucking corrupt ratings assholes...

Tue, 01/15/2013 - 08:57 | Link to Comment realtick
realtick's picture

The National Debt Is A Millstone Hung Around Our Neck http://chartistfriendfrompittsburgh.blogspot.com/2013/01/the-national-de...

Tue, 01/15/2013 - 09:07 | Link to Comment fonzannoon
fonzannoon's picture

Chartist you need to turn your gold chart upside down. Just a heads up.

Tue, 01/15/2013 - 08:59 | Link to Comment Cookie
Cookie's picture

shaking a little stick furiously...lol

Tue, 01/15/2013 - 09:07 | Link to Comment JPM Hater001
JPM Hater001's picture

It's not a stick.  It's their bread for the day.

Tue, 01/15/2013 - 09:01 | Link to Comment midtowng
midtowng's picture

It's gonna happen. This won't end until we see a repeat of 2011.

Tue, 01/15/2013 - 09:08 | Link to Comment JPM Hater001
JPM Hater001's picture

No repeat.  This miss will be too much for markets.

Tue, 01/15/2013 - 09:09 | Link to Comment 101 years and c...
101 years and counting's picture

ROFL!  The USSA now monetizes 2/3 of its monthly deficit because there is no demand for tbills.  How USSA is still rated above junk is beyond me.  The ratings' agencies are an even bigger joke now than ever.

Tue, 01/15/2013 - 11:49 | Link to Comment pupton
pupton's picture

Couldn't have put it better.  That's the thing that stands out to me - how much of our monthly outlays are paid for with printed money. 

Why would anyone invest in a company that was continuously diluting shareholder value by issuing new shares into the market?  Is it not true that when you offer new shares into the market you dilute the value of existing shares and the price drops to maintain the P/E ratio, etc.  Well, the "share price" of the US is WAAAAAYYYYYYYYYYY overvalued, because they have been diluting and diluting at an accellerating pace.  Which suckers would buy that Monopoly money is beyond me.

 

Rating is "Shit minus" in my book. 

Got silver?

Tue, 01/15/2013 - 09:17 | Link to Comment Monedas
Monedas's picture

What kinda phony rating system .... where the first five or so ratings (?) are all variations of "A and A-" .... known humourist and Israeli shill, Monedas, asks :   Why can't they use a top 10 list like David Letterman and everyone else ?       Monedas      1929      Comedy Jihad For World Metric Conformity And "The 10 Hour Clock" And  "The 10 is a dozen Committee ! "  World Tour

Tue, 01/15/2013 - 10:51 | Link to Comment espirit
espirit's picture

I think you missed the point of...

BANANAAA+

Tue, 01/15/2013 - 09:35 | Link to Comment One of these is...
One of these is not like the others..'s picture

Maybe I just don't understand, but who does America owe this debt to?

Is it not the bankers who were just bailed out by the taxpayers?

Does one hand not wash the other, and cannot the banks now extend the same courtesy to the taxpayers?

If not, then the banks need to go, do they not?

If my thinking is incorrect, would someone please post a correction for me to try and understand..

Tue, 01/15/2013 - 11:10 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

You will find the answer to your question, and many others, in this book...

Tue, 01/15/2013 - 09:37 | Link to Comment Tsar Pointless
Tsar Pointless's picture

Hey, Fitch.

Pull my finger.

Tue, 01/15/2013 - 09:36 | Link to Comment Inthemix96
Inthemix96's picture

The rating agencies including the fuckers at Fitch are part of the problem.

For Gods sake, how any country could be rated AAA at this point in the game is beyond me, and with you lot monetizing 85bln a month????

Whole worlds gone collective bat-shit crazy folks.  And Fitch, fuck you lot as well, sideways, with a baseball bat.

Tue, 01/15/2013 - 10:05 | Link to Comment AnAnonymous
AnAnonymous's picture

'Americans' need to keep the face and keep pretending their order is fair and square.

You know, 'american' justice and all...

Tue, 01/15/2013 - 10:10 | Link to Comment Inthemix96
Inthemix96's picture

Go shit on curb son.

You remind me of something called "Thrush", a symptom women can get during pregnancy.  Because you sure are an "Irritating Cunt", fuck off.

Tue, 01/15/2013 - 11:10 | Link to Comment shovelhead
shovelhead's picture

That's why I invented fruit flavored Vagasil.

No downtime.

Tue, 01/15/2013 - 09:37 | Link to Comment sharky2003
sharky2003's picture

I think it's agreed that we have a spending problem. So when a subset of politicians takes and stand and attempts to reign in the spending, our credit rating is at risk. BUT if everybody agreed to just keep on spending as if there's no tomorrow, everything is A-OK... What a POS fraud.

Tue, 01/15/2013 - 09:39 | Link to Comment AccreditedEYE
AccreditedEYE's picture

Trying h..a..r..d to pretend like this matters.... Not easy.

Tue, 01/15/2013 - 09:46 | Link to Comment azzhatter
azzhatter's picture

AIG was AAA until it wasn't. Only in the surreal world of CB's could the US with 16.5T in debt be considered AAA or even BBB

Tue, 01/15/2013 - 09:50 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

If it worries you we'll just sell you some CDS. That way if anything happens you'll be fine. How much can we put you down for?

Tue, 01/15/2013 - 11:00 | Link to Comment mvsjcl
mvsjcl's picture

Why don't we on the sly purchase Credit Default Swaps for the whole 16T dollar debt, then default on that debt. We could then collect the on the CDS's--instant $16T surplus!

Tue, 01/15/2013 - 09:59 | Link to Comment Monedas
Monedas's picture

What's our Ponzi Compliance rating AAA+ ?     Step and Fitch It, SA .... A French Nigger Rating Agency      Am I a Racist, Zionist Jew with Fascist leanings ?     So USA is A rated .... Belarus and Zimbabwe are rated C ?

Tue, 01/15/2013 - 09:55 | Link to Comment wcvarones
wcvarones's picture

Reuters is spinning this to suggest Fitch just wants the ceiling lifted and doesn't care about deficit reduction.

Here's what Fitch actually said:

"In the absence of an agreed and credible medium-term deficit reduction plan that would be consistent with sustaining the economic recovery and restoring confidence in the long-run sustainability of U.S. public finances, the current negative outlook on the 'AAA' rating is likely to be resolved with a downgrade later this year even if another debt ceiling crisis is averted."

 

Tue, 01/15/2013 - 10:01 | Link to Comment Professor Fate
Professor Fate's picture

As if anyone believes in Moody's, S & P, or Fitch ratings anymore.  The Ponzi will continue until it doesn't.  Simple as that.  Its like a game of musical chairs where the music never stops.  There's not nearly seats but until someone pulls the plug and stops the music, who cares?  The question of the day is, did the Bundesbank just pull the plug?

"Push the Button, Max"

Fate the Magnificent 

Tue, 01/15/2013 - 10:01 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Go ahead, and downgrade us. We will retaliate by calling you "Freedom" Fitch.

Tue, 01/15/2013 - 10:57 | Link to Comment espirit
espirit's picture

Under the new regime, ratings reductions are called either international or domestic terrorism depending on origination location.

Thank You,

The Staff of the Disinformation Ministry. 

Tue, 01/15/2013 - 10:03 | Link to Comment AnAnonymous
AnAnonymous's picture

Fitch give themselves another chance before disclosing their ratings have no influence on the rate the US borrows money.

Longer, but still more accurate.

'Americans' run a business of extorting the weak, farming the poor. Ratings matter when 'americans' want to squeeze the weak and the poor. Beyond that, well,...

Tue, 01/15/2013 - 10:53 | Link to Comment Toolshed
Toolshed's picture

'Americans' run a business of extorting the weak, farming the poor. Ratings matter when 'americans' want to squeeze the weak and the poor. Beyond that, well,...

And the Chinese lie to anyone who will listen and attempt to screw EVERYONE!! They have no reservations about ass raping each other and especially enjoy taking advantage of the elderly, the young, and the defenseless. Also, their favorite hobby is to destroy the environment.

And this is the oldest "civilized" race on the planet? Not a good sign for humanity.

Tue, 01/15/2013 - 12:06 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous started out well when stating:

Fitch give themselves another chance before disclosing their ratings have no influence on the rate the US borrows money.

Very good insightings. Promising. Perhaps a new leaves overturned.

'Americans' run a business of extorting the weak, farming the poor. Ratings matter when 'americans' want to squeeze the weak and the poor. Beyond that, well,...

Ah, ah, now driven into a ditch, leaving brown roadside skidmark, with hokey theorizings of a failed academic.

Problems with Chinese citizenism is that is a faith rooted in a no evidence ground. Such lack of groundings removes any potential Tao philosphic. Pouring of Chinese citizenism utterings thus rendered to failed academics and failed philosphics.

Inability for self indiction removes possibility of learning and improvement. Chinese citizenism stagnates like roadside dung droppings.

Tue, 01/15/2013 - 12:12 | Link to Comment Ralph Spoilsport
Ralph Spoilsport's picture

LOL!

Tue, 01/15/2013 - 10:10 | Link to Comment MyBrothersKeeper
MyBrothersKeeper's picture

I agree with the sentiment here:  that we are living in collective lunacy.  We have 16.5 T in debt, a 1 T budget deficit, and 123 T in unfunded liabilities....so the rating agency warns, "if you don't raise the debt ceiling" (which common sense would tell you means spending more money we don't have) your credit rating may be at risk.  Wouldn't that be like Experian saying they are going to lower my credit score unless I can get an even higher limit on my credit cards?

And Europe?  Wow. Individual countries can't even print money and there has been virtually zero recapitalization of banks and most soveirgn credit ratings over there are still at investment grade.  Even Greece was just upgraded.

Heck why don't we all max our credit out and party like it's 1999 (you know just before the tech bubble recession) and then declare bankruptcy.  Be careful about saying it too loud though, someone might overhear you and then a Nobel Prize type writer will pen a piece about how "good" that would be for the economy.

Tue, 01/15/2013 - 10:23 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

credit ratings are for the lenders, as long as they get the vig, you got good credit no matter how much further into debt you go..credit ratings are for the banks and a weapon of the banks - mankind ruled by global banks like a badly written si fi movie. see they live you may then wake up

Tue, 01/15/2013 - 10:17 | Link to Comment venturen
venturen's picture

What problem?....The US dollar is backed by trees and cotton fiber and ink though I suspect the printing presses might wear out...we could just print million dollar bills....so where is the problem... you will always get a piece of paper back.  

Tue, 01/15/2013 - 10:19 | Link to Comment Caracalla
Caracalla's picture

Wish I had bought the dip yesterday on TZA  :-(

Tue, 01/15/2013 - 12:45 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

TZA down .02 so far as of 11:45 am.  This with the headline S&P down 2.80.  Funny how that works.  

Tue, 01/15/2013 - 10:28 | Link to Comment vote_libertaria...
vote_libertarian_party's picture

Moodys says cut your deficit or we will downgrade

 

Fitch says keep the debt climbing un-interupted or we will downgrade

 

 

I smell a downgrade from somebody around the corner

Tue, 01/15/2013 - 10:34 | Link to Comment AgAu_man
AgAu_man's picture

If you stop borrowing, we'll reduce your Addict status rating amongst us Dealers.

Tue, 01/15/2013 - 11:26 | Link to Comment shovelhead
shovelhead's picture

Obligatory "We fart in your general direction." post.

Better late than never.

Tue, 01/15/2013 - 12:40 | Link to Comment Anasteus
Anasteus's picture

Fitch (Moody, S&P, et al) are all crony agents interested solely in keeping the status quo smoothly going. Yet another ponzi scheme self-preservative layer.

Tue, 01/15/2013 - 16:14 | Link to Comment dadichris
dadichris's picture

inslovency earns a triple-a rating here in bizarro world

Tue, 01/15/2013 - 18:09 | Link to Comment de3de8
de3de8's picture

Yeah, that will fix it!

Do NOT follow this link or you will be banned from the site!