U.S. rating likely to be downgraded again: Merrill - Polidicks

[release] [B](Reuters) - The United States will likely suffer the loss of its triple-A credit rating from another major rating agency by the end of this year due to concerns over the deficit, Bank of America Merrill Lynch forecasts. [/B] The trigger would be a likely failure by Congress to agree on a credible long-term plan to cut the U.S. deficit, the bank said in a research note published on Friday. A second downgrade -- either from Moody's or Fitch -- would follow Standard & Poor's downgrade in August on concerns about the government's budget deficit and rising debt burden. A second loss of the country's top credit rating would be an additional blow to the sluggish U.S. economy, Merrill said. "The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan" to cut the deficit, Merrill's North American economist, Ethan Harris, wrote in the report. "Hence, we expect at least one credit downgrade in late November or early December when the super committee crashes," he added. The bipartisan congressional committee formed to address the deficit -- known as the "super committee" -- needs to break an impasse between Republicans and Democrats in order to reach a deal to reduce the U.S. deficit by at least $1.2 trillion by November 23. If a majority of the 12-member committee fails to agree on a plan, $1.2 trillion in automatic spending cuts will be triggered, beginning in 2013. Those automatic cuts, mostly in discretionary spending, would weigh further on a fragile U.S. economy, Merrill said. In the same report, the bank reduced its 2012 and 2013 growth forecasts for the United States to 1.8 percent and 1.4 percent, respectively. If there were a downgrade, it was not clear which ratings agency would move first. Moody's Investors Service, which has a negative outlook on the United States's Aaa rating, said it is looking at several other factors, including the results of presidential elections and the expiration of the Bush-era tax cuts late in 2012, to decide on the rating. "It's not that we're waiting just for this committee to decide on the rating," Steven Hess, Moody's lead analyst for the United States, told Reuters in an interview last week. Failure by the committee to come up with an agreement, he said, "would be negative information but it is not decisive in our view about the rating." To be sure, Hess did not rule out the possibility of an early move on U.S. ratings if the country's economy slips into recession. So far, however, the economic performance "is certainly not super positive but not a disaster either," he said. Fitch Ratings, on the other hand, still has a stable outlook on its AAA rating on the United States, meaning it is more likely to revise that outlook to negative before actually downgrading the rating. In its latest report on the United States, Fitch says a "negative rating action," which could be only an outlook revision, could result from a weaker-than-expected economic recovery or by failure by the bipartisan committee to reach agreement on at least $1.2 billion in deficit-reduction measures. [url]http://www.reuters.com/article/2011/10/23/us-usa-rating-merrill-idUSTRE79M2J120111023[/url][/release] Bring it on.

Well what did you expect?

If congress stopped playing the "destroy the other political party" game then maybe we could get something done.

[QUOTE=plappy03;32925997]If congress stopped playing the "destroy the other political party" game then maybe we could get something done.[/QUOTE] But working together means sharing responsibilities and that sounds like [b]COMMUNISM[/b]

[QUOTE=markg06;32926078]But working together means sharing responsibilities and that sounds like [b]COMMUNISM[/b][/QUOTE] To be honest, compromise between two opposing parties has always been the cornerstone of how American democracy has worked: very slowly. The problem is that we're not compromising. And one of the parties has appeared to have gone manic while the other doesn't represent the people either.

Economic terrorism, as defined by the Geneva Centre for Security Policy: [quote]Contrary to "economic warfare" which is undertaken by states against other states, "economic terrorism" would be undertaken by transnational or [b]non-state actors[/b]. This could entail varied, coordinated and sophisticated or massive destabilizing actions in order to [b]disrupt the economic and financial stability of a state, a group of states or a society (such as market oriented western societies) for ideological or religious motives[/b]. These actions, if undertaken, may be violent or not. They could have either immediate effects or carry psychological effects which in turn have economic consequences.[/quote] Considering banks like Goldman literally bet against themselves and the United States, and reap a profit from crashing markets -- not to mention they are in cahoots with credit agencies, think they are doing God's work (Google it if you don't believe me) -- I suggest you dig out the dusty guillotines and have at them chaps.

I honestly believe these credit agencies are being [U]extremely[/U] lenient with us over this. We trashed the world's economy, and nearly avoided major damage to our nation multiple times, and they downgrade us by one point. If we were a restaurant, I can say we wouldn't keep our AAA rating, or even a AA.

[QUOTE=Mr. Someguy;32926258]I honestly believe these credit agencies are being [U]extremely[/U] lenient with us over this. We trashed the world's economy, and nearly avoided major damage to our nation multiple times, and they downgrade us by one point. If we were a restaurant, I can say we wouldn't keep our AAA rating, or even a AA.[/QUOTE] If we were a restaurant, we would have probably burned down half the neighborhood because the 2 16 year olds in the back couldn't come to a compromise on how long to put the fries in the frier for, and started a grease fire.

[QUOTE=Mr. Someguy;32926258]I honestly believe these credit agencies are being [U]extremely[/U] lenient with us over this. We trashed the world's economy, and nearly avoided major damage to our nation multiple times, and they downgrade us by one point. If we were a restaurant, I can say we wouldn't keep our AAA rating, or even a AA.[/QUOTE] I read that the reason most credit raters keep US in the high is because while the economy is poor there is still a lot of potential for recovery such as a big taxpayer base. A tax increase of a few percent has the potential to yield massive income. Not sure how this makes sense though.

[QUOTE=Mr. Someguy;32926258]I honestly believe these credit agencies are being [U]extremely[/U] lenient with us over this. We trashed the world's economy, and nearly avoided major damage to our nation multiple times, and they downgrade us by one point. If we were a restaurant, I can say we wouldn't keep our AAA rating, or even a AA.[/QUOTE] I wouldn't eat at that restaurant, personally.

Welp, I'm gonna go find an Occupy movement to be a part of, who's coming?

Just nuke the planet already.

[QUOTE=Fort83;32927143]I hope those troublesome republicans are happy with themselves. Look at the mess they made[/QUOTE]Sadly I think they are, Oama's reputation is in the crapper and they have a good shot at taking at least the white house in 2012 if they play their cards right.

[QUOTE=Political Gamer;32927290]Sadly I think they are, Oama's reputation is in the crapper and they have a good shot at taking at least the white house in 2012 if they play their cards right.[/QUOTE] They won't even try and clean the mess they made up either I expect. Just let it fester a bit, get another Democrat in next term, then blame it on them (again).

[QUOTE=Political Gamer;32927290]Sadly I think they are, Oama's reputation is in the crapper and they have a good shot at taking at least the white house in 2012 if they play their cards right.[/QUOTE] With the amount of people that are protesting right now, I doubt the republicans have that big of a shot. All of their "Front runners" and "Top tiers" are religious nut jobs, or idiots who failed economics class, and ron paul. I don't think they have a very good shot.

Who didn't see this one coming. Thanks American politicians, great leaders you've been.

A 5000 dollar limit on donations to politicians and making it illegal for corporations (the guys who got us into this mess to begin with) and unions to donate would help hinder corruption in the US system if it was possible to incorporate. Sadly there has to be at least one trillion loopholes with that plan and a lot of people opposing it.

Such is life in AA+merrica

Somehow, I think the Republicans will blame the President for this, and for not having a jobs bill passed, and for starting a random fire the Republicans started.

[QUOTE=Mr. Someguy;32926258]I honestly believe these credit agencies are being [U]extremely[/U] lenient with us over this. We trashed the world's economy, and nearly avoided major damage to our nation multiple times, and they downgrade us by one point. If we were a restaurant, I can say we wouldn't keep our AAA rating, or even a AA.[/QUOTE] you would have to run a [i]really[/i] shitty restaurant to destroy the entire world's economy

[QUOTE=ForcedDj;32928286]Somehow, I think the Republicans will blame the President for this, and for not having a jobs bill passed, and for starting a random fire the Republicans started.[/QUOTE] Honestly, you're acting no better then the republicans right now, blame blame.

[QUOTE=glitchvid;32928880]Honestly, you're acting no better then the republicans right now, blame blame.[/QUOTE] Obama's made a good fistful of his own mistakes, but the Republicans have been [I]astronomically[/I] worse.

how is this news exactly? wasn't it like common sense that raising the debt ceiling was a ridiculously short-term solution?

The worst part is this is gonna spill into my country too, thanks to America's "bipartisan" politics. LOL.

[QUOTE=Virtanen;32929262]how is this news exactly? wasn't it like common sense that raising the debt ceiling was a ridiculously short-term solution?[/QUOTE] It was meant to buy them time but they keep wasting that time by pissing around and not getting shit done.

[QUOTE=chunkymonkey;32929322]It was meant to buy them time but they keep wasting that time by pissing around and not getting shit done.[/QUOTE] Which they figured was a significant possibility, and why they instituted an automatic cuts mandate.

I'm glad I live in Canada... for now. Harper is a dumbass, and so are the people who voted him in. Hope the USA pulls it together, because we're all gonna feel the hurt.

Oh god, we might go from AA+ to... to... [I]AA.[/I]

[QUOTE=Fort83;32927143]I hope those troublesome republicans are happy with themselves. Look at the mess they made[/QUOTE] As bad as the Republicans are, your buddy Obama has done a great job of helping the Fed and private banks destroy the country A fun reference guide for those who think the destruction of the economy is an accident/caused entirely by Republicans [video=youtube;N_XtXhiekQk]http://www.youtube.com/watch?v=N_XtXhiekQk[/video] Love this vid because Gerald Celente can be seen in the background :D [editline]23rd October 2011[/editline] [QUOTE=Megafanx13;32929245]Obama's made a good fistful of his own mistakes, but the Republicans have been [I]astronomically[/I] worse.[/QUOTE] Nobody holds Obama accountable, you all just act like Obama is still a shining knight of freedom and fairness Republicans are fucking horrific, democrats are just as bad when it comes to the deals and payoffs that have huge effects on not only America, but the entire world. People always act like everything Obama does that is disagreeable is a mistake, but everything the Republicans do is a deliberate fuckup Obama makes his choices and acts on them just like the Republicans, his fuckups shouldn't be taken lighter just because people are unwilling to accept the fact that [b]he's shit[/b] Infinitely better than McCain would have EVER been, but he, like any politician, is SHIT

This isn't really 'another' downgrade, just another agency agreeing with S&P.