USSAAA - S&P Reconsiders Downgrade After White House Challenge

Tyler Durden's picture

McGraw-Hill: meet Chicago-style negotiations. And there, in one sentence, is all that is broken with this country. The reason for the beyond ridiculous horse trade, according to CNN: S&P analysis of U.S. revenue, deficit picture was questioned. Presumably S&P ignored to add the $10 quintillion dollars that were saved by America not declaring war on Tatooine and its most infamous Hutt resident: Larry Summers. Indeed, again according to CNN, S&P acknowledged some errors in its analysis. Isn't it amazing what being threatened with having your NRSRO license can do for motivation to double check your work, eh you pathetic sellouts? Who would have thought that last week's farce debt ceiling would continue and develop into a national pastime. Below, for the sake of S&P's non-existent conscience and incompetence, are their own guidelines for what constitutes an AAA-rated credit. Readers can decide if the US is one. In other news, in USSAAA, government downgrade rating agency.


And from CNN:

The Standard & Poor's rating agency served the Obama administration with notice Friday afternoon that it planned to downgrade the U.S. government's AAA credit rating, an administration official told CNN.


But S&P has yet to make its ruling public, and the source told CNN the agency is reconsidering after the administration challenged S&P's analysis of the government's finances.


The source, a senior official involved in the discussions, said the agency was off by "trillions" in its economic model and was now working to revise its analysis.


S&P did not return repeated calls for comment.


The official described the talks as a "moving target" and said "it's clear some people there still want to go forward" and downgrade U.S. debt.


Rumors swirled for most of the day Friday that S&P was preparing to make its move. But even several hours after the market close, official notice had yet to materialize


Rating agencies - S&P, Moody's and Fitch - analyze risk and give debt a "grade" that reflects the borrower's ability to pay the underlying loans.

The safest bets are stamped AAA. That's where U.S. debt has stood for years. Moody's first assigned the United States a AAA rating in 1917.

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Long-John-Silver's picture

Even the bubbles will have bubbles.

Dr. Porkchop's picture

Bubbles within bubbles.. trippy.

Yen Cross's picture

  Great comments `~   (:

dlmaniac's picture

In short S&P agrees to mark to mirage when rating Uncle Sam's credit-worthiness.

Mentaliusanything's picture

Fabric softner = H.R. 1489.

Use it Bitches or dinosurus R US

wisfool's picture

Tatooine is such a peaceful place!

hamurobby's picture

Its 149 light years away, but I hear the slave trade is booming there.

What if the democracy we thought we were serving no longer exists, and the Republic has become the very evil we've been fighting to destroy?

Long-John-Silver's picture

Unlimited Credit and spending Bitchez!

Duuude's picture

I got a better one


Warren Buffett's Berkshire Hathaway Inc., which is seen as a proxy for the U.S. economy because of the broad reach of its companies, said second-quarter profit rose 74% to $3.42 billion on improved results in its derivatives portfolio.


buzzsaw99's picture

the one time squid thing came from the taxpayers and the derivatives gains just went down the shitter with the s&p. try to think beyond the headlines.

Mr Kurtz's picture

Whadda ya think. A two pronged threat from IRS and Justice? Keep it AAA or else!

Rodent Freikorps's picture

Don't forget to mention this is the most corrupt "Justice" department in the history of the nation.

The MFM won't cover Fast and Furious, but it is getting uglier by the day.

It is almost as if the federal government wanted to make the drug cartels as strong as possible. Why would they want to do that?

Dr. Porkchop's picture

They just busted a worldwide ring of kiddie diddlers.

As for the perverts diddling the economy, well they can't seem to find any evidence on them.

Sir Real's picture

/Tin Hat Time/

Could it be that we are in an undeclared war with Mexico?  Mexico is considering using silver as currency per Hugo Salinas (sp?), which is contrary to US$ reserve status.  Also, Mexican farmers are not happy with GM corn and buying seed from Monsanto.  There are probably other issues which are not inline with current US policy.



Buckaroo Banzai's picture

Um...yeah. Problem with that logic is that "fast & furious" guns were used to kill a US Border Patrol Agent.

The REAL agenda behind "fast & furious" is back-door gun control.

Rodent Freikorps's picture

Not to mention the dead Mexicans, including the brother of their Attorney General.

Galen Slade's picture

Bingo - I have an answer for that one.  (Besides being a false flag operation for tearing up the second amendment and grabbing guns,)  The intention was to have the Zetas drug cartel overthrow the Mexican government.  This has several interesting consequences.

  • It results in tens of millions of illegals flooding into the United States, fleeing, or being driven by the Zetas.
  • Since there wouldn't be a legitimate government in Mexico, illegals couldn't be deported back.
  • The UN could then step in, declare them all as political refugees and demand that the US grant them amnesty (and all the goodies that illegals get here, welfare, food stamps, free medical care.)
  • Of course UN troops would need to be granted the right to enter US soil and set up bases to help police and deal with the refugee problem.
  • They would be registered to vote.  Democratic of course.  And would be located in sufficient numbers to heavily skew red states, like Texas and Utah, over to being blue states.
  • This blanket amnesty would result in lots of new US Citizens and Democratic voters - the 15 or so million illegals already in the country and the 20-25 or so million new political refugees.  Of COURSE there would be amnesty, this is a crisis and these are political refugees - how could we NOT grant them amnesty and we can't let them starve.....

Got the picture as to why the Feds were arming the Zetas yet ?

Rodent Freikorps's picture

That has merit.

OTOH we could send troops south to liberate the mestizos... and their oil.

legal eagle's picture

That has to be one of the dumbest conspiracy theory I have ever read. Thanks for the chuckle Chico

legal eagle's picture

Has to be dumbest conspiracy theory I have ever heard. Thanks for the chuckle Chico

Buck Johnson's picture

Yep, that was the threat.

DeadFred's picture

The 'guests' from Homeland Security who just moved into the homes of S&P's top officials are a big motivator as well. It's good manners to make your guests happy.

grunk's picture

New debt-rating agencies: Craigslist and EBay. 

nonclaim's picture

LOL... Next S&P rating?

"A+++++ will do business again!!!"

Dr. Porkchop's picture

AAA will be changed to "DoublePlusGood".

Chocolate rations to be increased for all who believe.

msamour's picture

Interesting 1984 reference.

Rhodin's picture

New debt-rating agencies: Craigslist and EBay.

And here i thought EBay was helping develop a new multi thread bidding system for congressional votes ;-)

inkarri9's picture

White House challenges analysis?  What did Obama say?  That it'll hurt his re-election chances(if that is possible)?  Or that it'll "cramp his style"  

Racer's picture

S&P your words are yet again proven to be not worthy of oxygen that is used

Piranhanoia's picture

Queen Elizabeth 14 here,  we are overdue to Southampton with a load of parchment for BOE. We have no passengers, the ship has been converted to freight as to haul greenbacks. Pirates from the EU are approaching,  please advise?

Nihilarian's picture

USSA rating intact.

scatterbrains's picture

I like to think of them as a wing of the cia.. it all makes sense that way.


Tracerfan's picture

S&P lost any credibility it had many years ago, as did the other rating agency whores.

louisianagold's picture

Street thuggery - the new Amerikan way.

And the wildebeast dances barefoot on the White House lawn.

digalert's picture


the old 'numbers no good trick'

WH: your numbers are no good

S&P: we know that

WH: well you can't downgrade us with bad numbers

S&P: where do we get these "good" numbers?

WH: we don't know where good numbers come from.

sasebo's picture

to WH - just pull some numbers out of your ass - Don't make a shit - this m-fucker is going down anyway & taking you obnoxious, pompous assholes with it. You've made sure of that.

DeadFred's picture

Look for them amongst the unicorns where you found today's NFP numbers.

flaunt's picture

Epic Friday night fun!

Misean's picture

I for one saved several million dollars on dinner alone, today. Instead of buying a Bughati Veyron to go pick up pizza and beer, I had it delivered.

faustian bargain's picture

Oh yeah? Well I just saved the entire world by deciding not to destroy it with my mind. In lieu of thanks, just send money to my Paypal account.

StychoKiller's picture

Hmm, truly sounds like a "Faustian bargain" to me! :>D

dontshoot's picture

I have no words.    .......................................................................

gwar5's picture



Yes.!  ..... we have no bananas!