"Will A be the new AA+? Perhaps, if the S&P follows through with its
latest threat. Bloomberg reports that, "the U.S., lacking a plan to contain $1
trillion deficits, faces the prospect of another rating cut in six to 24
months depending on the outcome of November elections, according to
John Chambers of Standard & Poor’s. America has had an AA+ rating with a
negative outlook since Aug. 5 when the New York-based unit of McGraw-Hill Cos.
stripped the nation of its AAA ranking for the first time, citing the
government’s failure to agree on a path to reduce deficits. The U.S. has a
one-in-three chance of another downgrade, Chamber said today during an S&P
sponsored Webcast. “What the U.S. needs is not so much a short-term
fiscal tightening, but it has to have a credible medium-term fiscal
plan,” said Chambers, managing director of sovereign ratings." Too bad
the US doesn't even have a fiscal plan what it will do tomorrow, let alone in
the "medium-term" courtesy of the most deadlocked political system ever. As for
"credible" - forget it. And as was shown, if the first US downgrade from August
5, 2011 broke the US stock market, we can't wait to find out how the
Citadel-controlled, FRBNY-blessed stock market will deal with this particular
event. In other news, we are still waiting to hear from Moody's on both the US
and France..."
at http://www.zerohedge.com/news/sp-threatens-us-another-downgrade-little-6-months
at http://www.zerohedge.com/news/sp-threatens-us-another-downgrade-little-6-months