S&P told White House it would downgrade U.S. – official
August 5th, 2011
06:56 PM ET
3 years ago

S&P told White House it would downgrade U.S. – official

NEW YORK (CNNMoney) - 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.

FULL STORY

Filed under: Debt • Deficit • Economy
soundoff (47 Responses)
  1. Gemini Girl

    Sorry to go off topic, but here goes:
    There is widespread GOP fraud going on in Wisconsin. Which coincidentally intensified around the time Scott Walker became Governor. Even the company hired by the Republican party to circulate recall petitions (recalling Dems) already had a tarnished reputation in Colorado. I hope the Republicans in Wisconsin are dealt KARMA in their next election. Scott Walker is there until 2015, but I hope too that the RECALL for him, for various reasons, succeeds. And you have to wonder why the KOCH BROTHERS and KARL ROVE are spending millions in that state, both to put more Republicans in office, and to re-call the DEMS they have targeted. Not this time! The good people of Wisconsin are much smarter this time around! Lead the way, Wisconsin, and good luck!!

    August 5, 2011 07:07 pm at 7:07 pm |
  2. BostonianTheWoodlandsTX

    I put the blame squarely on the GOP.

    How can people say the President hasn't tried when from the start Republicans have fought tooth and nail against everything and anything he proposes. They block jobs, or filibuster other things. They've held up appointments.

    I mean I see independents are upset with him,but how can you not see the GOP and their constant hamstringing this guy and not that into consideration.

    If you think it's bad now...then I say to my fellow americans go right ahead and give the keys back to Republicans.

    It's like all the spending,wars and tax cuts from 2001-2008 didn't happen. Whats scary,is some of my fellow americans somehow believe that !

    I certainly hope that is not the case.

    August 5, 2011 07:31 pm at 7:31 pm |
  3. Cedar Hill Press

    It's a smack on the back of the head that we deserve and voters need to get geared up to kick the extremists back to their church pews and bully pulpits. We've been had because we dismissed the Tea Partiers and their cousins as harmless buffoons. Not. even a yo-yo can figure out how to game the system.

    August 5, 2011 07:37 pm at 7:37 pm |
  4. Hammerer

    Administration's challenge of S&P's analysis is more than likely a threat if they downgrade the US credit rating. That is the way Washington works.

    August 5, 2011 07:41 pm at 7:41 pm |
  5. Four and The Door

    With debt at 100% of GDP and rising, new spending programs like ObamaCare kicking in and the economy wallowing in the mire, America is not the well oiled financial leader it used to be. The time to cut the federal government down to size is coming. 2012.

    August 5, 2011 07:43 pm at 7:43 pm |
  6. terry,va

    Obummie will send his thugs to S&P if they down grade our financial security. Look what he did to get health care passed. AARP get on board and I'll give you kick backs through supplemental insurance programs. AMA go along with me or I will cut your government reimbursements. (haha...I will anyway but I bluffed you....heehee). Obummie states, remember S&P, I have Eric Holder and all those "missing" guns that went to Mexico.....hint, hint....

    August 5, 2011 07:44 pm at 7:44 pm |
  7. Republicans - The Not Intended To Be Factually Accurate" Party

    We can thank the Republican Party – - and in particular, the so-called "Tea Party" faction of it - for this move.

    It is a direct result of the dust they kicked up over the debt ceiling extension, not the government`s finances, no matter how S&P spins this. If the GOPTP had not taken 8 months to do a routine task, the American Treasury could spend less on interest and more paying down debt.

    August 5, 2011 07:51 pm at 7:51 pm |
  8. Sniffit

    GOP: "Mission Accomplished"

    August 5, 2011 08:46 pm at 8:46 pm |
  9. Squigman

    It was expected. When congress showed that they were not able to reach agreement, without fighting like spoiled brats at the circus, the downgrade was inevitable. There is hope for the future, and that hope comes in the form of elections in 2012. If congress stays in republican control, there will be more downgrades. If your taxes go up, if your mortgage increases because of increased interest rate changes, and the price of essentials increase, you can thank yourself, if you voted republican. If you don't believe it, go ahead and vote for your oppressors. You get what you deserve.

    August 5, 2011 08:49 pm at 8:49 pm |
  10. derekur

    look for the u.s to renig on the payment to china, look for china to go into war mode with u.s look for russia to back china in the coming war.. give it two year.. the 13 colony states which is confederates states has alot of future problem, look for these confederates states to beg us union republican and democrats for help. any question, please refer to the on going war and the debt owe nation wide..

    August 5, 2011 08:52 pm at 8:52 pm |
  11. Rick McDaniel

    Obama needs to take notice.......we have too much debt, and in the past 2 days Obama has announced numerous new spending initiatives.

    Just what else would he expect them to do? He won't STOP spending.

    August 5, 2011 08:52 pm at 8:52 pm |
  12. Myron8160

    Thanks to teabaggers hope yall enjoy your five weeks vacaion

    August 5, 2011 08:58 pm at 8:58 pm |
  13. Cheryle

    Why are we still allowing the financial community to run this country? Didn't we learn that their only purpose is to rape the country? My guess is this is payback for the regulations after they brought this country to it's knees.

    August 5, 2011 09:09 pm at 9:09 pm |
  14. The Day of Financial Reckoning is HERE – The Great Democrat Welfare Society Ends

    Well, there it is, compliments of Obama and the Democrats that have run up the debt like drunken sailors then refused to cut anything meaningful. You now have credit agencies saying what the Tea Party has been warning of, the US debt and spending IS OUT OF CONTROL AND MUST STOP. Obama and the Democrats REFUSED the cut, cap and balance proposal. They REFUSED to come with REAL spending cuts NOW and in the near future. The deficits and debt would continue to grow out of control.

    I have been warning now for several years: The Day of Financial Reckoning is HERE – The Great Democrat Welfare Society Ends and been chided and attacked on this board by leftists. We now must decide if as a country we wnat to return to greatness or follow the liberal/socialist/progressive path and end up like Greece.

    August 5, 2011 09:10 pm at 9:10 pm |
  15. maf

    Nice work you fiscal morons – and by that I mean you Tea Partiers!!! Watching the Dow fluctuate and the TSX tank is a really awesome way to show you have absolutely NO idea how the world economy, let alone the US economy works!!! If you have no revenue stream, money doesn't move. I take it, you all sold your stocks in the last two days??? How is your 401K now???
    When you bankrupt the middle class, look out for civil unrest! Recession, depression, won't matter when there is no value to your dollar! The only thing left will be revolt! If I hear one more of you GOP talking about the debt left to your children and grandchildren, I'm going to hurl!! You should be ashamed of yourselves.

    August 5, 2011 09:10 pm at 9:10 pm |
  16. SecedingfromTexas

    If Grover Norquist and his assinine pledges, and those who signed them, the Tea Party, the Republicans and all those
    who know nothing but how to blow hot air don't feel this slap in the face at their idiotic tactics to "take down the
    President", then nothing will, and we, the American people will have to show them the door ASAP. They do not
    know what they are doing, they do not care about America, they are greedy, self-centered, egotists who worship
    money and nothing else. How much more are we going to take from these freaks of politics?

    August 5, 2011 09:15 pm at 9:15 pm |
  17. Libertarian

    Better late than never, I'd say. In fact, S&P is being too nice by dropping the U.S. credit rating by only one step, because the whole world knows that U.S. debt is junk with this country's unsustainable spending habits from the individual level to the federal level. If they really wanted to send a message to Congress, I'd suggest that they be bold and drop the U.S. credit rating all the way to BB+.

    August 5, 2011 09:17 pm at 9:17 pm |
  18. canadianguy

    Let me guess this is Obamas fault too!! We Canadians should start building a fence soon. I can already see the illegal aliens coming to Canada from the U.S

    August 5, 2011 09:18 pm at 9:18 pm |
  19. rs

    Time to declare war on the Tea Party.

    August 5, 2011 09:20 pm at 9:20 pm |
  20. Peter s

    Those are sad news to the American people especially during this economic uncertainity caused by Republicans and the special interest groups. However, I don't think the S&P or Dow J have the moral intuitions of down grading any Country in the world!.

    August 5, 2011 09:21 pm at 9:21 pm |
  21. Gene from CA

    Thanks Tea Party. You had a 4 trillion dollar bill but wouldn't agree to it because of your mindless loyalty to your wealthy masters! Now you've hurt the US economy more than any tax increase possibly could. Idiots!

    August 5, 2011 09:53 pm at 9:53 pm |
  22. Alex in Wisconsin

    Why would S&P do this? Because they have no faith in Congress's ability to govern responsibility. Maybe when the branch of government that authorizes spending and revenue stops working as hostages and hostage takers, S&P will reconsider. We need a balanced approach to deficit and debt reduction and that means significant spending cuts, revenue increases from all American people and corporations, and trade deals that encourage exports from the USA rather than imports to the USA. Anything less than all 3 is irresponsible and the American People will find the cost of waiting or unbalanced approaches to be much higher than any of us dare imagine. Putting people to work through the unemployment safety net to help upgrade infastructure isn't a bad thing either.

    August 5, 2011 09:56 pm at 9:56 pm |
  23. mark H

    This is not due to whether you are Republican, Democrat, or Tea Party!!! It is our debt!!!!! Time to stop spending and time to cut, cut, cut!!!! Even taxes will not solve this issue!!!

    August 5, 2011 10:24 pm at 10:24 pm |
  24. Jilli

    Nice job tea baggers. Hey McConnell, Cantor, Boehner – what's up for your next act? Seeing as your hostage taking worked out so well for us all this time around.

    August 5, 2011 10:33 pm at 10:33 pm |
  25. Tea Party Mike

    What a fine mess we find ourselves in.
    Obama and Boehner, we are told, were close to a big deal with an agreed on 800 billion in new revenue to be generated throught tax reform. You know tax reform that gets rid of tax breaks and loop holes and lowers tax breaks so that companies like GE who had 14 billion in profits and paid zero taxes would actually have to pay some tax, just like the big bad oil companies do. The Obama Boehner deal was reportedly large enough to make the credit agencies happy and included the Democrats beloved revenue increase. But Obama got greedy and after agreeing to 800 billion, asked for 400 billion more in tax increases. Boehner correctly determined he was wasting his time trying to reach an agreement with Obama.
    So in we get a deal that is too small of a deficit reduction to satisfy the ratings agency and it has no new revenue.
    The Tea Party and Republicans wanted the use the debt ceiling as an opportunity to solve the debt problem that is a very real threat to our nation and all of us. The credit rating agencies agree. Opportunity lost.
    The credit agencies say we must fix Medicare and Social Security. Democrats say do not touch and draw the line. Harry Reid even says they are fine as they are, don't need to be fixed. Time for Reid to shut up and get out of the way.
    Democrats do not want to cut any spending and are furious about the spending that has been already been cut. I don't see them wanting to cut more even though more deficit reduction is needed.
    The credit rating agencies have stated that defict reduction has to be real, a bill that tries to count something that already is going to happen does not really count. So that leaves out any savings from the wars because it is already known they will end over the next 10 years. And that leaves out the Bush tax cuts because they by law are already set to expire in 2012.
    So where do we go from here.
    A large number of Republicans would probably support 800 billion of new revenue from tax reform. But probably not with out reform of Medicare and Social Security. By the way tax reform completly gets rid of the Bush tax cuts by rewirting the tax code and current Bush tax rates. Will Democrats agree to reform of Medicare and Social Security and additional spending cuts. My guess is no.
    The current budget ends in October. No new budget has been passed so government can't spend beyond September with out a 2012 budget or a short term spending allocation like was done for the entire 2011 budget.
    Republicans may have to bring the goverment to the brink of a shut down in October to get kicking and screaming Deomcrats to do what is necessary to avoid a credit rating down grade and save or nation from eventual economic disaster.
    The Tea Party will once again be called terrorists by progressives. History will call them heros.

    August 5, 2011 10:34 pm at 10:34 pm |
1 2