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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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Fri, 08/05/2011 - 19:06 | 1528446 faustian bargain
faustian bargain's picture

Fiat ratings.

Fri, 08/05/2011 - 19:09 | 1528451 Long-John-Silver
Long-John-Silver's picture

Even the bubbles will have bubbles.

Fri, 08/05/2011 - 19:49 | 1528560 Dr. Porkchop
Dr. Porkchop's picture

Bubbles within bubbles.. trippy.

Fri, 08/05/2011 - 19:56 | 1528576 Yen Cross
Yen Cross's picture

  Great comments `~   (:

Fri, 08/05/2011 - 20:09 | 1528608 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Psychodelic

Fri, 08/05/2011 - 20:03 | 1528591 dlmaniac
dlmaniac's picture

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

Fri, 08/05/2011 - 20:28 | 1528652 10044
10044's picture

bubble party

Sat, 08/06/2011 - 04:00 | 1529871 Mentaliusanything
Mentaliusanything's picture

Fabric softner = H.R. 1489.

Use it Bitches or dinosurus R US

Fri, 08/05/2011 - 20:19 | 1528627 wisfool
wisfool's picture

Tatooine is such a peaceful place!

Sat, 08/06/2011 - 10:12 | 1530223 hamurobby
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?

Fri, 08/05/2011 - 19:07 | 1528447 Long-John-Silver
Long-John-Silver's picture

Unlimited Credit and spending Bitchez!

Fri, 08/05/2011 - 19:11 | 1528457 Duuude
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.

 

Fri, 08/05/2011 - 20:19 | 1528628 buzzsaw99
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.

Fri, 08/05/2011 - 19:11 | 1528454 Mr Kurtz
Mr Kurtz's picture

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

Fri, 08/05/2011 - 19:18 | 1528482 Rodent Freikorps
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?

Fri, 08/05/2011 - 19:52 | 1528568 Dr. Porkchop
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.

Fri, 08/05/2011 - 20:01 | 1528587 Sir Real
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.

 

 

Fri, 08/05/2011 - 20:25 | 1528643 Buckaroo Banzai
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.

Fri, 08/05/2011 - 21:11 | 1528912 Rodent Freikorps
Rodent Freikorps's picture

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

Fri, 08/05/2011 - 20:28 | 1528654 Galen Slade
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 ?

Fri, 08/05/2011 - 21:10 | 1528878 Rodent Freikorps
Rodent Freikorps's picture

That has merit.

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

Fri, 08/05/2011 - 22:38 | 1529223 legal eagle
legal eagle's picture

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

Sat, 08/06/2011 - 01:03 | 1529679 legal eagle
legal eagle's picture

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

Fri, 08/05/2011 - 19:40 | 1528535 Buck Johnson
Buck Johnson's picture

Yep, that was the threat.

Fri, 08/05/2011 - 20:15 | 1528623 DeadFred
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.

Fri, 08/05/2011 - 19:11 | 1528455 grunk
grunk's picture

New debt-rating agencies: Craigslist and EBay. 

Fri, 08/05/2011 - 19:43 | 1528536 nonclaim
nonclaim's picture

LOL... Next S&P rating?

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

Fri, 08/05/2011 - 19:56 | 1528578 Dr. Porkchop
Dr. Porkchop's picture

AAA will be changed to "DoublePlusGood".

Chocolate rations to be increased for all who believe.

Fri, 08/05/2011 - 20:42 | 1528731 msamour
msamour's picture

Interesting 1984 reference.

Fri, 08/05/2011 - 22:03 | 1529139 Rhodin
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 ;-)

Fri, 08/05/2011 - 19:11 | 1528456 inkarri9
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"  

Fri, 08/05/2011 - 19:11 | 1528459 Racer
Racer's picture

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

Fri, 08/05/2011 - 19:14 | 1528463 Piranhanoia
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?

Fri, 08/05/2011 - 19:18 | 1528466 caerus
caerus's picture

boom?

Fri, 08/05/2011 - 19:47 | 1528554 Long-John-Silver
Long-John-Silver's picture

KA-POW!

Fri, 08/05/2011 - 19:15 | 1528467 Nihilarian
Nihilarian's picture

USSA rating intact.

Fri, 08/05/2011 - 19:43 | 1528543 scatterbrains
scatterbrains's picture

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

 

Fri, 08/05/2011 - 19:14 | 1528468 Tracerfan
Tracerfan's picture

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

Fri, 08/05/2011 - 19:19 | 1528476 louisianagold
louisianagold's picture

Street thuggery - the new Amerikan way.

And the wildebeast dances barefoot on the White House lawn.

Fri, 08/05/2011 - 19:19 | 1528477 digalert
digalert's picture

Aha,

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.

Fri, 08/05/2011 - 19:19 | 1528485 caerus
caerus's picture

lol

Fri, 08/05/2011 - 19:38 | 1528516 sasebo
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.

Fri, 08/05/2011 - 20:19 | 1528631 DeadFred
DeadFred's picture

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

Fri, 08/05/2011 - 19:20 | 1528478 flaunt
flaunt's picture

Epic Friday night fun!

Fri, 08/05/2011 - 19:21 | 1528479 Misean
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.

Fri, 08/05/2011 - 19:56 | 1528579 faustian bargain
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.

Sat, 08/06/2011 - 00:32 | 1529619 StychoKiller
StychoKiller's picture

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

Fri, 08/05/2011 - 19:23 | 1528488 dontshoot
dontshoot's picture

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

Fri, 08/05/2011 - 19:26 | 1528493 gwar5
gwar5's picture

.

 

Yes.!  ..... we have no bananas!

Fri, 08/05/2011 - 19:25 | 1528495 sysin3
sysin3's picture

Nah, just fuck me with a broomstick. The oligarchs have won. Game over.

Fri, 08/05/2011 - 20:21 | 1528638 Rodent Freikorps
Rodent Freikorps's picture

You might want to keep fighting. The oligarchs prefer to use a 4x4 with a pineapple duct taped to the end.

Fri, 08/05/2011 - 20:27 | 1528649 CompassionateFascist
CompassionateFascist's picture

They won Nothing. Ratings do not change underlying reality. An AAA Ponzi will collapse at about the same time as a downgraded Ponzi. Maybe sooner. By the way, that 2.4 trillion debtbux figure isn't going to get the Pols/banksters thru the next election....they miscalculated, over-estimated revenues. Around about July-August 2012, they'll have to (try to) raise the ceiling again. In a context of an economy in Freefall.   

Sat, 08/06/2011 - 00:34 | 1529622 StychoKiller
StychoKiller's picture

Yeah, strange thing about unemployment, folks with no job don't pay taxes very well! :>(

Fri, 08/05/2011 - 19:26 | 1528497 Stoploss
Stoploss's picture

The funniest thing of all is, S&P can't do a damned thing to stop what's happening. They are as useless as tits on a boar hog.. If AAA means that much in this failing ponzi, then so be it.

The frequency of the crashes is accelerating, i expect that frequency to increase as time goes on.

Fri, 08/05/2011 - 19:25 | 1528499 Blagio
Blagio's picture

Why have ratings? They are meaningless.

Fri, 08/05/2011 - 19:25 | 1528501 zorba THE GREEK
zorba THE GREEK's picture

I hate to toot my own horn here but I'm going to do it anyhow....

TOOT  TOOT       TOOT  TOOT

Boy that felt good, Thank you, that's all for now.

Fri, 08/05/2011 - 19:26 | 1528505 inkarri9
inkarri9's picture

I guess you really can make people an offer they can't refuse.  

Fri, 08/05/2011 - 20:23 | 1528637 DeadFred
DeadFred's picture

Extortion 101 is a required course in the School of Chicago Thuggery.

Fri, 08/05/2011 - 20:38 | 1528706 Yen Cross
Yen Cross's picture

You caught that clip, with The two lovers on stage?  Rahm and Wookie ( SR.) had a " KODAK" moment.

 

         Ref: otools 50 TH  / Flash/ Crash...

Fri, 08/05/2011 - 19:29 | 1528506 Gibu The Great
Gibu The Great's picture

To be honest, who really thought the rating agencies had the balls to even try to downgrade the US government?  With all of the market manipulation we talk about here at ZH it's pretty obvious that the WH would threaten to make business for S&P absolute hell if they went ahead and downgraded.  We're all slaves.  

Fri, 08/05/2011 - 19:48 | 1528556 tom a taxpayer
tom a taxpayer's picture

 

One reason S&P has the balls to downgrade the U.S. govt is that the U.S. govt did not have the balls to prosecute S&P for its role in the greatest financial crimes in U.S. history. 

Now, by downgrading the U.S., the S&P can simultaneously 1) distinguish itself from Moody's as a marketing tactic, and 2) avoid any chance of prosecution for alleged past RICO crimes by claiming that prosecution is retribution for the downgrade. 

 

Fri, 08/05/2011 - 19:27 | 1528507 DarkStarDog
DarkStarDog's picture

Credit ratings, FICO, who gives a crap.  Don't pay and party today and everyday.  The FED will print mo money.  Nuttin to it the way we do it.

Fri, 08/05/2011 - 19:30 | 1528509 flaunt
flaunt's picture

Stability and legitimacy of politicial institution - hahaha

Popular participation in politcal process - LOL a majority of eligible voters did not vote in 2010

Orderliness of leadership succession - Check - I can see why this would matter to a bootlicking institution like S&P

Transparency in economic policy decisions and objectives - if you call lying transparency

Public security - sure, if security means getting beat up by police thugs and raped by tsa agents

Geopolticial Risk - fighting at least 3 wars, pissing off terrorists all over the place, exporting inflation... nah we're good.

What.

A.

Farce.

 

Fri, 08/05/2011 - 19:30 | 1528511 infinity8
infinity8's picture

hooray! more drama fuel for next week! off to the county fair, old-fashioned fun, demolition derby and funnel cakes - cheers, y'all!

Fri, 08/05/2011 - 20:31 | 1528671 CompassionateFascist
CompassionateFascist's picture

Watch out for the Black flash-mobs, attacking whites and then each other; the one in Wisconsin didn't go too well.

Fri, 08/05/2011 - 19:31 | 1528512 MsCreant
MsCreant's picture

Zig-heil, MFs.

Fri, 08/05/2011 - 19:28 | 1528513 Overpowered By Funk
Overpowered By Funk's picture

Un-fuckingbelievable!!!

Fri, 08/05/2011 - 19:30 | 1528521 Overpowered By Funk
Overpowered By Funk's picture

...and the lapdogs on CNBS report this bullshit with a straight face. Too much!

Fri, 08/05/2011 - 19:50 | 1528563 Long-John-Silver
Long-John-Silver's picture

Botox will do that.

Fri, 08/05/2011 - 20:33 | 1528680 Cabreado
Cabreado's picture

Expected.

Narcissists, Sociopaths, Weak-Willed Sycophants all...

The fly in the ointment that, intentionally or otherwise, wreaks havoc on cohesive society.

Fri, 08/05/2011 - 19:32 | 1528520 DarkStarDog
DarkStarDog's picture

Does anyone remember John Snow ???   LOL

Fri, 08/05/2011 - 19:34 | 1528522 Gibu The Great
Gibu The Great's picture

The sad thing is that IF we got a downgrade, that might be enough to get some of the sheeple to pay attention to what's going on... maaaaybe.  Now, of course, that won't happen.  And will never happen.  As long as Barry is in office, anyways.  The sheeple will continue on and in 2012 reward the Teleprompter for it's AAA-credit ratings saved or created.  

Fri, 08/05/2011 - 19:35 | 1528526 Sophist Economicus
Sophist Economicus's picture

Well, let's not be hasty. S&P will have alot of powerful folks gunning for it. They may just be taking all comments into consideration and crafting the strongest argument possible before they downgrade. Any cracks in their analysis and you know the gubbermint folks will use the MSM to discredit them

An optimistic view of what is going on I know, but I for one am going to wait and see....

Fri, 08/05/2011 - 19:46 | 1528552 caerus
caerus's picture

agreed, upon further consideration...this "objection" is probably worse than an outright downgrade...it is the desperate act of a desperate sovereign...what debtor in default would not "object"

Fri, 08/05/2011 - 20:27 | 1528657 DeadFred
DeadFred's picture

Maybe they come out with 'We were going to drop you one notch but because of the attempted extortion we drop you two". I must be asleep, I seem to be dreaming.

Fri, 08/05/2011 - 19:36 | 1528527 RobotTrader
RobotTrader's picture

 

 

Obviously, somebody decided to look at where bond yields were trading and determined that only the highest-rated, gilt-edged Fiatsco Paper can command such paltry interest rates.

3-Month 11/03/2011 0.01%    6-Month 02/02/2012 0.04% 12-Month 07/26/2012 0.11% 2-Year 07/31/2013 0.29% 3-Year 07/15/2014 0.49% 5-Year 07/31/2016 1.25% 7-Year 07/31/2018 1.91% 10-Year 05/15/2021 2.56% 30-Year 05/15/2041 3.85%
Fri, 08/05/2011 - 20:25 | 1528650 EvlTheCat
EvlTheCat's picture

How much do they charge for massive transfusions of blood these days Robo?

Fri, 08/05/2011 - 19:38 | 1528528 IMA5U
IMA5U's picture

expect all sorts of kommunist headlines and rumors on monday in an effort to lure buyers back and shorts to cover

Fri, 08/05/2011 - 19:38 | 1528529 inkarri9
inkarri9's picture

CNBC Headline - S&P calculations in possible US downgrade were off by Trillions.

A few trillion here, a few trillion there...$100Trillion+ in money to be owed.  How far off could they have been?  Oh yeah...$1.5T

 

Rallly On!!! 


  • S&P Calculations in Possible US Downgrade Were Off by 'Trillions': So

Fri, 08/05/2011 - 20:23 | 1528534 iNull
iNull's picture

Butoh Theatre: http://www.youtube.com/watch?v=Lva8L-J8x04&NR=1

BTW, does anyone know who this performance artist is? I think they are from NYC but I can't find them on Google.

Fri, 08/05/2011 - 19:40 | 1528537 gwar5
gwar5's picture

.

 

Bang Dai Ho: Me helped! Obama say officials S&P downgrade. But Bang think he say for officials, S&M and degrade. Me take care of it, work out OK! Barrack so happy!

 

Fri, 08/05/2011 - 19:40 | 1528539 lolmao500
lolmao500's picture

More like ``do this and your families are gonna have an accident``...

Fri, 08/05/2011 - 20:29 | 1528673 Rodent Freikorps
Rodent Freikorps's picture

Heh.

"That's a nice company/family you have there. Be a shame if something were to happen to it."

Sat, 08/06/2011 - 00:40 | 1529634 StychoKiller
StychoKiller's picture

Good(?) news everyone, the downgrade is a done deal!

Fri, 08/05/2011 - 19:40 | 1528542 Yen Cross
Yen Cross's picture

  Where in the HELL is Warren, and his Reading Railroad?

Fri, 08/05/2011 - 19:48 | 1528549 iNull
iNull's picture

This is fucking huge. I mean people just don't get how huge this is.

When I said six threads ago that Monday was going to be a bloodbath, I didn't even know about this story. But now that I do, it makes me even more convinced that Monday will be bridle deep in blood.

Fri, 08/05/2011 - 20:33 | 1528679 DeadFred
DeadFred's picture

I hope you took advantage of the upswing this morning to recharge your positions.

Fri, 08/05/2011 - 19:47 | 1528550 Use of Weapons
Use of Weapons's picture

'off by trillions'

Note to all sane viewers left: trillions is an invention of the 1990's. The IRS will come after you for an error in the realms of 'tens' or 'hundreds'. A 'thousand' is a monthly wage. A few 'hundred' of those might get you noticed as a GOP sponsor, and result in 'millions' of savings to your industry. A 'billion' is the GDP of entire nations of people ('millions' of them).

'Trillions' is basically declaring war on accountants and maths in general.1

 

 

Basic math. (This is so not going to parse- ug, it didn't, so robbing a quick visual aid - http://en.wikipedia.org/wiki/Exponentiation)

aN = a x ... x a / n

  • 1. His name was Arthur Anderson. His name was Arthur Andersen. HIS NAME WAS ARTHUR ANDERSEN
Fri, 08/05/2011 - 20:53 | 1528780 MsCreant
MsCreant's picture

Arthur Anderseninfinity

Fri, 08/05/2011 - 19:44 | 1528553 inkarri9
inkarri9's picture

Now, let's just assume that the S&P analysts are marginally-competent[on a sunny day and it is sunny here in LA], who in the White House would challenge the numbers?  Jay?  These are the folks with access to the "launch" button.    

Fri, 08/05/2011 - 19:48 | 1528557 docj
docj's picture

Meh - S&P (and the rest of them) like to think of themselves as the "referees" of this market, but they are just as captured as the rest of the system (Fraud Street, DC, Fed, ECB, etc.)

Forget it, Jake. It's Obama-town.

http://www.youtube.com/watch?v=1v_BVNGAfYM

Fri, 08/05/2011 - 19:48 | 1528565 iNull
iNull's picture

Meh yourself. I'm not trying to start a flame war, but, this is significant because it comes from the inner circle. Once the elite acknowledge that the system is about to implode, it indicates that implosion is nigh.

Fri, 08/05/2011 - 19:57 | 1528581 docj
docj's picture

Relax. man. I've been ducked-and-covered for the implosion for the better part of a year now. Every day these bastards kick the can is a gift for those of us who know what's coming - The Grande Suck.

As to whether it's "nigh", well, we'll find out on Monday.

Fri, 08/05/2011 - 20:00 | 1528586 Sathington Willougby
Sathington Willougby's picture

 

We'll give that can the kicking of a lifetime.

That should be good for a day or two.

 

Fri, 08/05/2011 - 20:01 | 1528589 iNull
iNull's picture

If I'm right I will change my name to 8-ball, cause we'll both be wasted.

Fri, 08/05/2011 - 20:04 | 1528593 docj
docj's picture

Indeed, we all shall be.

It's only a matter of time, really.

BTW, nice catch on the FMJ reference. Not sure how many know what you (and I) are talking about, though - might be "before their time".

Fri, 08/05/2011 - 20:07 | 1528607 iNull
iNull's picture

Heh. Hat tip.

Fri, 08/05/2011 - 19:49 | 1528558 beatus12
beatus12's picture

explaination on Kudlow,

jh tried to make it believable,

 

Fri, 08/05/2011 - 19:49 | 1528559 treasurefish
treasurefish's picture

I'll tell you what - if this little snippet of news (that didn't make the mainstream news or even ZeroHedge that I've seen) doesn't make you want to pull down your pants, and take a nice, big, smelly Barack all over Ben Bernanke's hood parked in front of the Federal Reserve building, then you must be a bankster:

 

FED IN SECRET $16 TRILLION BAILOUT OF US AND EUROPEAN BANKS

 

http://www.digitaljournal.com/article/309485

 

Fri, 08/05/2011 - 20:19 | 1528630 Pain Train
Pain Train's picture

Paraphrasing, but the article says that to date, NONE OF THE 16 TRILLION HAS BEEN PAID BACK. Whaaaat????? So if I have this right, the Fed created 16 trillion out of thin air, and gave it away????

Fri, 08/05/2011 - 19:50 | 1528562 inkarri9
inkarri9's picture

CNBC - "Apparently the error was in the calculation of the U.S. debt-to-GDP ratio over time and was based on a misreading of what the correct congressional baseline was."

Fri, 08/05/2011 - 19:50 | 1528564 Seasmoke
Seasmoke's picture

im sure they were told they will be held accountable for their part in the housing bubble

Fri, 08/05/2011 - 19:56 | 1528577 Long-John-Silver
Long-John-Silver's picture

The Everything is a Bubble, Bubble is inflating.

Fri, 08/05/2011 - 20:00 | 1528585 Yen Cross
Yen Cross's picture

  The bubble is filled with" Laughing Gas" and I'm having my { WISDOM TEETH} pulled for the 3rd time in as many years!!!

Fri, 08/05/2011 - 20:08 | 1528604 iNull
iNull's picture

Thanks for the context. Now at least I understand the constant state of inebreiation.

Why do you prolong it? I had all six done at once. Better to get it over with.

Fri, 08/05/2011 - 20:20 | 1528633 Yen Cross
Yen Cross's picture

   6 ?   i WAS THINKING 4X3= 12?   gOOD COMMENT THOUGH...

Sat, 08/06/2011 - 12:37 | 1530679 citta vritti
citta vritti's picture

12? Whoa, just make sure they’re not the #1 or #2 molars. Usually only one wisdom tooth per side, so 4 in all, but Wikipedia tells me sometimes there are more. Who knew. http://en.wikipedia.org/wiki/Wisdom_tooth

Fri, 08/05/2011 - 19:52 | 1528567 Jena
Jena's picture

Maybe Eric Holder got photos and he's a better AG than I thought.

Fri, 08/05/2011 - 19:52 | 1528569 Misean
Misean's picture

It's quite simple what constitutes a AAA rating for USeless Lootery debt.

When people are hoarding $100 bills for the cotton content, the agency will downgrade the USeless to AA with a positive outlook.

Fri, 08/05/2011 - 19:54 | 1528571 EvlTheCat
EvlTheCat's picture

One wonders if The Bureaucracy believes they have discovered the secret of perpetual can kicking.

Jack boot "TSA Thug"s, and behind closed door threats, conscriptz!

Fri, 08/05/2011 - 19:53 | 1528573 Anonymouse
Anonymouse's picture

I've mentioned this before, but thought it worthwhile to repeat.

Back in the days when I used to speak to rating agencies on a regular basis, I often heard them discuss AAA ratings.

Repeatedly, they said that negative watch (or outlook) on a AAA credit made no sense.  AAA credits are supposed to be iron-clad.  If there is any question of whether a credit deserved a AAA rating, then by definition, it no longer was worthy of AAA.

It seems that ratings criteria are just as malleable as are GAAP standards

Fri, 08/05/2011 - 19:55 | 1528575 Fíréan
Fíréan's picture

That the whole system is rigged is now obvious. Firstly the ratings agencies complied to the requests on the banks, which paid them, to give bonds  fake  ratings while knowing they contained crap, now this. Any confidence that previous fraudulent activities were finally in check is now completely negated.

Fri, 08/05/2011 - 19:57 | 1528582 Sathington Willougby
Sathington Willougby's picture

 

You think this can is gonna kick itself?

 

Fri, 08/05/2011 - 20:10 | 1528609 Yen Cross
Yen Cross's picture

  Brazilian Jumping beans, are good can kickers, without FX 'Tariffs..."   Now we need to move to the Horn of Africa & Scandenavia?

 

    Why is The eur a better buy than aud?  As I said 3 days ago, I'll stay long aud for 10 big figures @ 4.75%, over the euro any day.   My posistion pays me 1% per day win or lose...

Fri, 08/05/2011 - 19:59 | 1528584 Buck Johnson
Buck Johnson's picture

They essentially mad dogged them to dare to downgrade our toxic sludge, and they somewhat backed down.  It's becoming a big joke about the western world economy. 

Fri, 08/05/2011 - 20:02 | 1528590 Translational Lift
Translational Lift's picture

Welcome to "Change YOU can believe in"!!

Fri, 08/05/2011 - 20:55 | 1528787 Rodent Freikorps
Rodent Freikorps's picture

People always get that wrong. What he really said was hope for change.

What the microphone didn't catch was when he said, "Hope in one hand and shit in the other. Let me know which one fills faster."

Fri, 08/05/2011 - 20:00 | 1528592 Sathington Willougby
Sathington Willougby's picture

 

Either BTD or go outside and clean the crap out of your shorts.

 

Fri, 08/05/2011 - 20:04 | 1528594 Sathington Willougby
Sathington Willougby's picture

Yes we kick can!

Fri, 08/05/2011 - 20:30 | 1528666 iNull
iNull's picture

Heh. I got it. But you should put kick in parens.

Fri, 08/05/2011 - 20:05 | 1528597 caerus
caerus's picture

upon further further consideration i am glad i didn't cover this afternoon...and now...to the tavern

Fri, 08/05/2011 - 20:05 | 1528598 Bunga Bunga
Bunga Bunga's picture

They want to stop the inflow into treasuries and stop the bleeding on the stock markets, at least to buy some time.

Fri, 08/05/2011 - 20:06 | 1528600 chinaboy
chinaboy's picture

Exact the same way we do it in China! Government downgrades rating agency before they even snoop around.

 

Fri, 08/05/2011 - 20:49 | 1528756 Yen Cross
Yen Cross's picture

  You made my " Q3"...   The Gooberment downgrades before they snoop around...   That was a plus 10/  Golf Clap!..

Fri, 08/05/2011 - 20:06 | 1528601 Archimedes
Archimedes's picture

So the rumours were true. Shocked they had the balls to even think about it. But why does a rating agency tell a country they are going to downgrade? Why is there even a conversation.

Anyway, come September when Timmy has to borrow from Pension funds again we should be getting downgraded.

The great unraveling has begun.

Fri, 08/05/2011 - 20:06 | 1528602 chinaboy
chinaboy's picture

Exact the same way we do it in China! Government downgrades rating agency before they even snoop around.

 

Fri, 08/05/2011 - 20:09 | 1528605 YC2
YC2's picture

If monetization isnt default, the US is AAA.

Fri, 08/05/2011 - 20:13 | 1528618 Yen Cross
Yen Cross's picture

  That was good!  AAA+ to AAA with a " Gold Star" From Timmah...

Fri, 08/05/2011 - 20:11 | 1528613 hunglow
hunglow's picture

Happy Birthday WTF

Fri, 08/05/2011 - 20:09 | 1528614 booboo
booboo's picture

Triple A my AAASS, the last person to see United States Triple A was some Japenese Kamikaze on his dive on a Carrier Group in the Pacific.

Fri, 08/05/2011 - 20:09 | 1528615 Clycntct
Clycntct's picture

W-hell it's BFF and I just thought I'd add my rating to the nobummer progRamm.

Fucking Bullshit.

Fri, 08/05/2011 - 20:11 | 1528617 Everybodys All ...
Everybodys All American's picture

The most corrupt administration in my lifetime. Now how can anyone believe that these guys don't "fix" the world markets.

Fri, 08/05/2011 - 20:15 | 1528621 iNull
iNull's picture

Well, see, there's the rub. Isn't it.

They don't fix the markets. They only think they do.

Fri, 08/05/2011 - 20:11 | 1528619 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Currencie wars, rating wars, real wars:  So many wars, so little time.

Fri, 08/05/2011 - 20:15 | 1528625 mayhem_korner
mayhem_korner's picture

Presumably S&P ignored to add the $10 quintillion dollars that were saved by America not declaring war on Tatooine

That is the funny!  As Brooks would say, "near soiled m'self."

Fri, 08/05/2011 - 20:24 | 1528640 Hulk
Hulk's picture

Yep, its official. Wonder if the other two follow . 6pm Sunday is going to be interesting.

Fri, 08/05/2011 - 20:27 | 1528647 Nate H
Nate H's picture

so is the 'retract' alluded to in Tylers post here now passe/incorrect?

 

this is going to have HUGE impact in collateral markets. I for one am scared (as Ive been working on related supply chain/currency disruption scenarios -didn't really think this one would happen)

Fri, 08/05/2011 - 20:32 | 1528662 Yen Cross
Yen Cross's picture

hULK i'LL SEND SOME iNTERBANK NUMBERS OVER  STARTING @ 11:30 A.M. wEST COAST uSA TIME...  On SuNDAY... ( G.M.T 19:30)...

 

   yen/

Fri, 08/05/2011 - 20:25 | 1528645 Gibu The Great
Gibu The Great's picture

Interesting.  So they did it after all. 

Fri, 08/05/2011 - 20:22 | 1528635 QEsucks
QEsucks's picture

Tyler I love you. :"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." This is cogent fucking analysis.

Fri, 08/05/2011 - 20:26 | 1528646 Downtoolong
Downtoolong's picture

It's just like "Dancing With The Stars". Everyone gets varying levels of super kudos. Even if you fall on your ass in the middle of a performance, you still score an 8.7 out of 10 (Right Kirstie Alley?). The best part for me is trying to imagine what one would have to do to score a 2.5.

Fri, 08/05/2011 - 20:30 | 1528664 booboo
booboo's picture

Get swallowed by Kristie's ass, BOOM, instant 2.5

Fri, 08/05/2011 - 20:32 | 1528676 EvlTheCat
EvlTheCat's picture

To many wiffs, and not enough Simon Cowells.

Fri, 08/05/2011 - 20:29 | 1528653 buzzsaw99
buzzsaw99's picture

This might trouble me if I valued S&P's opinion. As it stands I say: "assume the position".

Fri, 08/05/2011 - 20:28 | 1528667 RobotTrader
RobotTrader's picture

 

 

If U.S. Treasuries were downgraded to AA+ on Monday, stocks will be down another 350 points and investors will instantly "flee" right back into Uncle Gorilla Notes, regardless of their rating.

So far, Treasuries and German Bunds have proved to be absolutely bulletproof.

Fri, 08/05/2011 - 20:38 | 1528708 EvlTheCat
EvlTheCat's picture

Bang Head Here - http://youtu.be/C5rJ4g9EMUk

Fri, 08/05/2011 - 20:43 | 1528736 CompassionateFascist
CompassionateFascist's picture

Robo is right on target: US TBs will be the last bastion to fall; and the Crash will echo thru the Ages.

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