Reports are filing in that a downgrade on America’s long-term credit rating (or the “AAA” status we just reaffirmed with the other two agencies, Moody’s and Fitch) is on the way from Standard & Poor’s, the agency whose credit rating the part of the country that pays attention to this kind of news has been waiting for.
Unfortunately, this was not the exact stripe of news they were waiting for. This is what you get for tempting fate. Or for never paying Columbia House.
For ABC, Jake “The Octagon” Tapper reports:
A government official tells ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value. Officials reasons given will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. The official was unsure if the bond rating would be AA+ or AA.
Elsewhere, on CNBC.com, from April: “What Downgrade? Pros Shrug Off Warning From S&P.”
And via Zero Hedge, Treasury Secretary Tim Geithner telling Americans that our credit is fine.
History lesson: Canada lost one of their AAA ratings (on debt-denominated foreign currencies) from S & P in 1992; they got it back in 2002. Australia lost their AAA in 1986, and didn’t get it back until 2003. Some, however, are not as easily excited with feverish Friday apocalyptic terror as others, however:
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