Atlantic: U.S. Is Still Rated ‘AAA’ by Fitch
By Shaun Kenney | Tuesday, August 16th, 2011 | PolicyWhat downgrade?
Today, Fitch Ratings affirmed the nation’s AAA rating saying the country’s fiscal outlook is stable. “The affirmation of the US ‘AAA’ sovereign rating reflects the fact that the key pillars of US’s exceptional creditworthiness remains intact: its pivotal role in the global financial system and the flexible, diversified and wealthy economy that provides its revenue base,” the agency said in its statement.
The article from The Atlantic Wire doesn’t get into too many other details, but you’ll notice not only that this news story is completely being ignored by the media, but that U.S. markets — anticipating a downgrade and a flurry of sales — reacted negatively to the news.
Speculators, folks.
Tags:
Contribute for Conservatism!
Share this post
About the author
Shaun Kenney is the Chairman of the Fluvanna County Board of Supervisors, former Communications Director for the Republican Party of Virginia, and an active blogger since 2002. Shaun lives in Thomas Jefferson's backyard with his wife, six children, and a modest attempt at a farm in Kents Store, Virginia.
Comments
7 Responses to "Atlantic: U.S. Is Still Rated ‘AAA’ by Fitch"
Yes, I think Fitch hit it on the head. In fact, the contrasts with 2008 are astounding. Liquidity is back, the commercial paper market, which had seized up, in fully functioning, loans are being made albeit with additional safeguards, highly leveraged investment banks have converted to banks with adequate capital and reserves, none of which existed in the last stages of the Bush administration. Yet S&P knew this as well, so why the downgrade? One need only to read the report to realize they were commenting on the political situation, not the economic one. The republican party, the majority in the House, and with enough members in the Senate to stop action, refuse to consider the need for additional revenue that is essential to cutting the $4 trillion in debt that universally is accepted as putting our fiscal house in order. So it is clear, the republican led debt crisis was totally a self inflicted wound, and frankly, it is still bleeding. Time for Congress to get back to work, agree on cuts, tax increases, tax code reform, and modifications of entitlements. Just read Bowles-Simpson; it really is not that hard.
Shaun: Yep, that’s what I wanted to point out. The market fell on this news. Falls on a downgrade, falls on a failure to downgrade. These people should get out of the market and go to Vegas and play craps for a living. It’s a more honest way to make a buck.
Could gold be the ultimate link between humans and aliens? New episode of Ancient Aliens on history channel tonight at 10 PM. Have heard that the aliens are going long on gold and shorting stocks.
bp: We need to see some green cards before those aliens invest in anything here.
Hyperinflation Vs Hyperdeflation: Take Your Pick
http://www.zerohedge.com/news/hyperinflation-vs-hyperdeflation-take-your-pick
The market is now at a very simple crossroads: bonds are pricing in the hyperdeflation that the resumption of the global depression brings in, while gold is pricing in the central planning policy response to that hyperdeflation, which is nothing but print, print, print.
Trying to invest in this current market is a bit of an intellectual exercise. Maybe an I Ching reading might help.
Totally agreed on the Vegas trip… heck, folks with 401k’s might do better in Vegas. At least there, when you win you win, and when you lose you lose. I doubt anyone has seen their 401k’s go up with the same rapidity as they have nosedived (unless they are maxing out and contributing 10% of their salaries).
The only folks winning on the market are the brokers… Sell, Buy, Sell and buy again results in a broker fee and commission everytime! What a scam…
Leave your response
The comments section is for meaningful discussion. Readers are reminded to post comments that are germane to the article and write in a common language that steers clear of personal attacks and/or vulgarities.
Please take a moment to review our comment policy.