S&P Slashes US Growth Forecast, Says Current Crisis Is Worse Than 2008 As US At "Risk Of Default", Ridicules "Transitory"

Tyler Durden's picture

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legal eagle's picture

Not surprised if our government, who endorses hit-men style executions for people they do not like (scientists in Iran) and uses outright public assassination attempts on leaders we dont like, starts using such methods in the United States.  Watch out S&P officers, I would lock my doors at night, make sure you are out when your hotel maid arrives, get rid of personal computers lest they be found to have child pornography on them (downloaded remotely by NSA), and start driving the speed limit (lest an errant shot hit you from a highway patrolman).  Watch "enemy of the state" and get informed.  You might think about relocating to an island nation and changing your name.

thetruth's picture

Okay, S&P didn't just grow a pair out of nowhere.  I would like to hear some intelligent ideas about what is really going on here.

legal eagle's picture

They are simply stating what everyone knows to be true.  I guess that is why it is so shocking.

This is not the America I grew up with, nor the America one can love.  What "special" characteristics can we claim anymore?  Nothing admirable, only most trash reality television shows with ho's like Kardasians.

thetruth's picture

They have known this for years.  The question is why did they grow a pair now.  I'm talking about a power shift way at the top.

NotApplicable's picture

Somebody has to be the bad guy, otherwise the facade appears obvious, even to the herd.

RockyRacoon's picture

I've explained this until I'm sick of my own words:   S&P drew the ratings agency short straw.   Simple.

Oh regional Indian's picture

It's just the next weapon being set-off in the scheme truth. No sudden shift here. Heck, Obama was being prepped for this role since....childhood maybe? All part of a scheme. The rating agencies, so thoroughly discredited during the past scandals, suddenly become relevant as they rate national debt?

That might be the real joke/tell.

ORI

 

RockyRacoon's picture

Good one.  I think this is the only comment that didn't carry the link!

tip e. canoe's picture


Feud with Hulk Hogan; WWF Championship (1987–1988)

André agreed to turn heel in early 1987 to be the counter to the biggest "babyface" in professional wrestling at that time, Hulk Hogan

http://en.wikipedia.org/wiki/André_the_Giant

classic match, with no other than Jesse the Body providing color commentary:

http://www.youtube.com/watch?v=R9UDmjtU6LM

 

JW n FL's picture

+++++++++++++++++++++++++++++++++++++++++

I watched that match as a Kid! Loved it then and still Love it NOW!

tip e. canoe's picture

JDub, saw it live.    to feel the energy of 90K+ people erupt in unison was an amazing high.   to know that energy was created from a 'script' was quite educational, but did nothing to diminish the fond memories of the event itself.   fun day it was.

JW n FL's picture

wrestling is real! fuck you man! its real!!!

slewie the pi-rat's picture

after they take away santa and the easter bunny, we're left with a shitty tooth fairy account, which, when drained, leaves us with professional wrestling! 

OT (L0L) jay-dub, how about this for a marquee headline?

S&P Seeks "Plausible" Explanation For SLEW of Bad Fuking News, BiCheZ!

RUSirius's picture

Easy.S&P is trying to curry favor with their customers: Wall Street banks and HEdge funds, who are their only paying customers. Their paying customers have bet HUGE sums on a rise in US debt interest rates. John Paulson alone has already lost, on paper, hundreds of millions of $$ on the bet that US debt rates would rise. But. US Debt rates don't rise as long as the US is considered the "flight to safety" destination, and as long as Bernanke keeps buying our own debt via QE1,2,3.

It's an extortion attempt, nothing more.

S&P is a useless, discredited, obsolete organization, filled with some severely highly paid lackeys WHO ARE PAID BY WALL STREET. They would cease to exist if the plutocrats on Wall St didn't continue to authorize payments to them. Which they do. Every month. Even though they (Wall St) is now ALSO  paying THEIR OWN ANALYSTS to do the EXACT SAME THING S&P CLAIMS TO DO using THE SAME INFORMATION in addition to CDS spread info.

 The S&P "ratings" became pointless once Credit Default Swaps were created which accurately reflect REAL MARKET SENTIMENT about the actual risk underlying any issue. In 2008, the CDS for Lehman debt, for example, were trading through the roof all while S&P maintained a triple AAA rating on Lehman up to the actual minute of their collapse.

  Everyone knows this, including the people who are payed exhorbitant sums to "run" S&P. These guys are fighting for their financial lives. They're willing to do anything to hang on just a little longer.

EscapeKey's picture

A bought and paid for MSM? That's very American, these days. Even the British media occasionally tells the story, but in the states... nah.

Tellingly, this article isn't on the front page of Marketwatch, and no doubt, wasn't even mentioned on CNBC.

spiral_eyes's picture

the powers that be have realised that the "kissinger/nixon solution" ( free oil from the arabs, free goods from china, all for worthless paper) is sucking the life out of america. this is why rick perry the "establishment candidate" is sounding more and more and more like ron paul. the billionaires (other than steve jobs, warren buffett and maurice strong and a few other mao admirers) don't want to live under chinese vassalage.

koch brothers 2012 — putting manufacturing, job creation, and anti-communism first.

thetruth's picture

I'm not sure.  TPTB have known this sucks the life out of america and have been doing it on purpose.  There is no real risk of living under Chinese vassalage.  The reason the establishment sounds more like Ron Paul is so that they can trick people into voting for them and then not actually doing any of the things Ron Paul would do. 

Something is still missing.

spiral_eyes's picture

I think the reason the status quo has continued is because it's a free lunch. And nobody loves free lunches more than big, fat, powerful oligarchs. And the dumb consumerist superficial middle classes love their slave goods free lunch at Wal Mart almost as much.

And, as anyone who has read the history of Ancient Rome knows, bread and circuses is a killer. 

In that analogy, Ron Paul is Cato. Let's hope first a trickle, then a torrent, then a stream of TPTB listen to Cato this time. We don't want another thousand years of barbarian rule.

By the way, read this to understand the very real risk of America falling under Chinese vassalage in the next 50 years, especially the comments from FO SHO and joebob:

http://azizonomics.com/2011/08/15/why-qe-didnt-cause-hyperinflation-2/ 

thetruth's picture

Thanks for that link - there is a lot of good info there.  We do have to be careful because if the Chinese dump our debt we'll be in trouble.  However, I think China is also in an awkward situation because of our military power.  I don't think they want to mess with us any more than we want to mess with them.  A vassal dependency?

spiral_eyes's picture

What can America do in a war against China beyond MAD? I guess they would stand a pretty good shot fighting a conventional war over the pacific, but given that both sides would be nuclear-armed, there would be massive tension and potential for a nuclear overspill from day one. Indeed, even in a conventional war, America would could end up outmanned and outmanoeuvred. But there are bigger potential problems:

The American economy would experience a massive crash if China banned all exports and diverted a sizeable amount of domestic production to military hardware (they're communists, remember, they can do that — and i'm sure Steve Jobs would be happy to lend his beloved CPC a hand). If America wants to avert a massive economic slump, and avert MAD, they have one choice: hand over what China wants. 

And as so many of us on this forum have put it over the years, that is Gold, Bitchez.  

Global Hunter's picture

military establishment who can read the tea leaves and realize if they don't get the troops home soon, they'll lose their jobs and power to some buffoon in the UN or NATO?  Trying to force DC's hand...maybe a bit out there.

edit: I have no idea but I think some powerful interests must have given the green light to S&P, I don't think they have death wishes.

thetruth's picture

I think this could be close.  You would need a huge power, like the military, trying to take back control in order for S&P to make this call.  If it was the military though, couldn't they just choose to come home and stop this nonsense?  That seems to be the easier solution, so I'm not sure it's the military.  Who else could it be?

SMG's picture

Could be the Oligarchs feel they are prepared enough for the coming chaos and are ready to create their new order.  This could be they have decided it's time to press the "detonate" button, collapse the US and everyone else, and are ready to roll out the one world government.  The only real way to know is to wait for the dust to settle and see what emerges.

If we get see the end of globalization, rebuilding of the US industrial base, and a new commodity backed US Dollar.  Then what I consider to be the good guys did it and won.

If we see a North American Union with a new constitution, a global currency, and a new global central governement.  Then the bad guys won and God help us all.

thetruth's picture

It's interesting in itself that the only way to know is by the outcome, when it's too late.  I guess that just shows you the dire situation we're in.

PaperBugsBurn's picture

You're right about different bankster faction. Dr Webster G Tarpley (www.tarpley.net Twitter.com/webstergtarpley ) says it's a hit job from England (the City where Rothscum and Co hang out). He says that Indian guy from S&P is a Brahmin (the banksters grew their opium in India more than 100 years ago). He also says that other dude from S&P is a London School of Economics snob.

Besides, who else but the most powerful banksters would dare do this? I think it's the HSBC crowd -as opposed to the Goldman Scum crowd- who is not interested in risking their investments in Asia and who would lose their juden fetzen power (a major blow) if gold nukes were deployed.

thetruth's picture

Yes, this is the type of info I was looking for.  Do you suppose the hit was  part of the "plan" or was it a result of some bickering amongst factions?  It's hard to know how tight-knit these groups are in reality. 

PaperBugsBurn's picture

I think there is dissent within their ranks for the simple reason that their interests are not monolithic. Remember when Stanley Fisher was proposed for head of IMF? Then they turned him down? To say nothing about that farce with DSK. In that instance I think it was the Americanized banksters who were defending their dollar -against the SDR. No, I really think there is tension within and this S&P hit job is to show the pols in DC (who would lose their parasitic existence if they cut the bread part of bread and circus) who really runs the show.

The basic problem is that printing money shoots up inflation in other powerful countries and destabilizes these regimes. The City banksters have major interests over there (bigger than in the hulk of the us economy) and those regimes will pull the golden trigger before losing their own cushy existence.

What do you think?

thetruth's picture

We would have to assume that the powers at the top (in London or anywhere else) were okay with putting Bernanke in place.  Bernanke could choose to stop exporting inflation.  Since this actually has nothing to do with US politicians, I'm not sure this message was directed at them necessarily. 

Everything was going so smoothly for so long with TPTB that it's hard to imagine they hit a stumbling block in their plan.  That's why I'm not 100% sure why this is happening.

 

 

Kali's picture

I always said when the sharks start eating each other, thats the beginning of the end.  Allstate suing GS, S&P sniping at the master's hand.  Fractures in the factions.

oogs66's picture

one of their analysts accidentally stumbled across zerohedge while searching for "hedging zero bonuses"  and liked what he read?

Koffieshop's picture

Maybe this is to manufacture another crisis to allow the government to ignore even more laws?
Or maybe the command-and-control structure is collapsing because everyone in the know is bailing out.

Maybe a combination of both.

thetruth's picture

Yeah, I think this might be the best idea I've seen so far.  Either a little manufactured chaos or a little real chaos due to end game fighting at the top.

Hobbleknee's picture

Or it could be major false flag on the way.  Like Rumsfeld admitting they "lost" 3 trillion the day before 9-11.

karzai_luver's picture

this criminal cabal you call a gvt has never needed an excuse to ignore law.

 

When they feel like it they pay a lawyer to draft an opinion which then gets signed in secret. What law?   BWHAAAAAAAAAAAAAAAAAA!!!!!!!!!!!!!!

 

 

 

mendigo's picture

it's something tyler said

isn't it the current trend - big corpoarations are realizing that they don't really need the us; they are scraping us off thier boots

trav7777's picture

I reckon they know they are going to be prosecuted

vast-dom's picture

timing impeccable: mini-crash for US economy = perfect QE3 justification.....

 

How's that for a conspiracy theory?

 

Dow dips under 10K right before Aug26.

 

DirtMcDirtDog!

zorba THE GREEK's picture

@ thetruth  Maybe the S&P sees the writing on the wall (that the Obama Administration is a total failure

and soon to be powerless bunch of losers ) and has decided to align itself with the incoming tide of Pro-growth,

Limited Government, balanced budget, Tea Party leaning candidates.

24KGOLD FOIL HAT's picture

@thetruth 12:56

Agree. 

Tactically:They know they cant hold off an equities plunge any longer...so blame CONgress, S&P and Obama.

Strategically: They know Obama will therfore lose in 2012...so no more QE...which might help their new wonderboy Ricky Perry take over at Prez.

Coincidence?...Dallas Fed boss is against QE3...which causes market fall, which causes Perry win in 2012

They being TPTB ie shadow govt eg money center banks

gunsmoke011's picture

Tou got that right. I guess S&P decided to go for the fences here before the Senate Banking Committee comes back into session and decides to shut them down.

Vergeltung's picture

man, your hat is on pretty tight there.

thetruth's picture

We've been in the same crappy situation since 2008.  S&P didn't come up with brand new analysis one day and see the numbers were suddenly poor.  That means there is another piece of the puzzle.

mholzman's picture

Hey Eagle, the hotel maid was so obvious a set-up I cannot even believe that it's gone unnoticed. Even if it's just one other person, that makes me feel more optimistic.

 

Don't forget the arrests for drugs on person trick either.