More Downgrades Coming?

[tsptalk]

Merrill Lynch Warns of Another U.S. Debt Downgrade

"In a research note, the Bank of America unit predicts that either Moody’s or Fitch will move to downgrade the U.S. AAA rating. Standard & Poor’s cut the nation’s bond rating in August, causing the stock and bond markets to swoon, after months of bickering by Congress on how to best reduce spending and cut the deficit. The United States spends about 40 percent more annually than it collects in taxes."

http://abcnews.go.com/blogs/business/2011/10/merrill-lynch-warns-of-another-u-s-debt-downgrade/

 

[nasa1974]

Merrill Lynch Warns of Another U.S. Debt Downgrade

"In a research note, the Bank of America unit predicts that either Moody’s or Fitch will move to downgrade the U.S. AAA rating. Standard & Poor’s cut the nation’s bond rating in August, causing the stock and bond markets to swoon, after months of bickering by Congress on how to best reduce spending and cut the deficit. The United States spends about 40 percent more annually than it collects in taxes."

http://abcnews.go.com/blogs/business/2011/10/merrill-lynch-warns-of-another-u-s-debt-downgrade/

It's amazing how our leaders in Washington do not understand basic economics. You can only lower your spending by so much, but there comes a point in time that you have to raise your income to get out of debt.

 

[tsptalk]

I didn't mean for this topic to get political. It was meant as a possible warning for the market.

 

[nasa1974]

I didn't mean for this topic to get political. It was meant as a possible warning for the market.

Sorry! Didn't think that my comment would start up a political storm. Maybe I should have left out the Washington part. But it is basic economics 101. I will delete my statement if you would like?

 

[jkenjohnson]

Merrill Lynch Warns of Another U.S. Debt Downgrade

"In a research note, the Bank of America unit predicts that either Moody’s or Fitch will move to downgrade the U.S. AAA rating. Standard & Poor’s cut the nation’s bond rating in August, causing the stock and bond markets to swoon, after months of bickering by Congress on how to best reduce spending and cut the deficit. The United States spends about 40 percent more annually than it collects in taxes."

http://abcnews.go.com/blogs/business/2011/10/merrill-lynch-warns-of-another-u-s-debt-downgrade/

That would make things very interesting. It seem like even mentioning it, would spook the market, but it just keeps going up.

 

[Scout333]

http://thehill.com/homenews/house/189497-fear-of-another-downgrade-sparks-worry-on-wall-street

Wall Street fears more debt downgrades.