Standard & Poor's Drops U.S. Credit Rating From AAA To AA+. What Does It Mean For You? [Video]
Video After The Jump
Credit rating agency Standard & Poor's downgraded the U.S. credit rating for the first time ever from AAA to AA+.
John Chambers, the head of sovereign ratings for S&P, told CNN much of the blame falls on the hands of Congress and it's inability to stabilize the country's debt situation with the deficit reduction plan that was passed on Tuesday.
"Our political view of the United States have been altered," Chambers said. "We've taken the rating down a notch. The political brinkmanship over raising the debt ceiling was something that was really beyond our expectations. The U.S. getting to the last day before they had cash management problems. There are very few governments that separate the budget process from the debt authorization. And we also think more broadly that this debate -- although we do have an agreement that will deliver $2.1 trillion dollars in savings over the next decade, it's gonna be difficult to get beyond that, at least in the near term. And you do need to get beyond that before the debt to GDP ration is going to stabilize."
So what exactly does all this mean?
The New York Daily News reports that it hit will hit Americans directly in their pocketbooks by raising borrowing costs.
With the country's trust factor dented by political haggling in Washington, the fallout has the potential to affect mortgage rates, credit card bills and boost borrowing costs for American consumers and companies.
The downgrade could further weaken an already-fragile economy by undermining investors' faith in U.S. bonds, increasing borrowing costs and further slowing whatever chance there was of a recovery.
It could also increase the cost of home mortgages, auto loans and other types of lending tied to interest rates paid on U.S. Treasuries.
JPMorgan Chase estimated that a cut would raise the nation's borrowing costs by $100 billion a year, Bloomberg News reported.
Republicans and Democrats are already pointing their fingers at each other, which is what helped to get us here in the first place. Our political parties have to find a common ground and be able to work together if things are going to get better.
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Comment
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Comment by miniman01 on August 12, 2011 at 8:48pm
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f****** americans you don't have money to buy chrome wheels and luxury you live above your income broke b******
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Comment by AlwayzFly on August 11, 2011 at 5:42am -
Vote for freedom Ron Paul 2012!
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Comment by AlwayzFly on August 11, 2011 at 2:14am
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Hahaha I'm delusional... Look at you your talking like you support Obama, must be your hero right? yet you hate the bankers for what they did with your credit. Sorry to break the bad news buddy but like I said STUDY THE FACTS. The top bankers in America are on big boy Obama's team. He 100 percent supports them. YOU need to study and learn more..... When I say bankers I mean... his choice for the head of the Treasury Department is Jon Corzine, chairman and CEO of Golden Sachs; also an affiliate of the Bilderberg Group. His choice to run the federal reserve; Paul Volcker; CFR member, Bilderberg, and Trilateral Commission. They are apart of the top bankers of America, they control the 'fiat' money, the basically created paper money , which put you in debt. They own the oil industry. The banks. They support the war.... Obama's so called 'mentor' , ex global adviser; Zbigniew Brzezinski, who was Senior Bush's global adviser. Also writer of psycho book The Grand Chessboard. Which Is all about strategical war. This man helped and trained with Bin Laden..... Thats just a small piece of the corruption , and you f***** support that haha.. Obama supports the War, which has cost America ; not millions, not billions, but TRILLIONS in debt. You f***** serious? You support that! Yes S&P f***** America with terrible credit choices, yet he backs the OWNERS of S&P. STUDY AND DO THE MATH, Your nothing but another statistic. Your talking about white devils and s***, this isnt the land of f***** voodo. Grow Up . Study. Get your mind out of the trap.
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Comment by BusanMan on August 10, 2011 at 12:33am -
Bunch of GREEDY OLD WHITE MAN!
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Comment by Aothachos on August 9, 2011 at 1:57pm -
fu*k ron paul? Why would he be holding the future back. He is against increasing the debt cap for united states. Since the debt is increasing in the united states we are going to be in a crisis where gas is so expensive, the cost of living is too expensive and no one is getting paid enough. Where the middle class would be the new low poor class and the rich get by no problem. Millions lose their jobs across the country, unemployment isn't changing just getting worse. Only thing obama did for me was get me health coverage until I'm 27 thats it. Otherwise he has done sh*t for me. You guys want weed legal, vote ron paul, he wants the legalize freedom of choice to do what you want. He explains the benefits from hemp, how we send all our jobs to canada to create products from hemp and sell it back to USA....those jobs could be here. Medical use of hemp is great and so on. Drinking is much worse than smoking weed. Drinking doesn't benefit anyone anything medically, maybe a glass of red wine but thats it. We put so many people in jail for carrying illegal drugs and they come out more fuked up than before, they should be put into rehab if they have a bad addiction, no in jail, they will not be helped in jail only made worse and all our tax money is going to that. Our tax money is going to wars overseas that are senseless, we should close out all the bases and send all our troops home. Majority of the military support ron paul than anyone else running, even more than obama. You want to go back to the way things were, where americans were prosperous and happy, vote ron paul otherwise 12/21/2012 will most likely happen as predicted....
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Comment by alexander on August 9, 2011 at 8:04am
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And F*** the S&P too! You think America is stupid? That organization was giving high ratings to Enron during thier whole drama went down and they also gave high marks to mortage lenders during the housing crisis. Lets stop pretending! S&P gave America this "so called" blemish becuase we have a black president, and the f****** tea baggers in congress should be held responsible for being shitheads who use politcs to stop America from moving forward. People need to stop beiong afraid to support Democrats; and rooting for losers like Ron Paul isnt helping! It just shows how you have no spine and refuse to chooser an actual side.
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Comment by alexander on August 9, 2011 at 7:49am
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Man you are a delusional shithead...Im just glad the rest of the country knows better...Ron Paul is just another weak a** politician who caters to the ideology of unrealistic dumb f**** like YOU, NeverFly... Stop trying to support 3rd whell nobodies that will NEVER win becuase thats not how the game is played, little b**** a** n****... There's 2 teams, Dems and Repubs...so if you arent on the blue squad YOU ARE PART OF THE PROBLEM! Grow the f*** up! .
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Comment by AlwayzFly on August 9, 2011 at 4:23am
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@alexander The wars is putting the states in f***** debt..... And f*** you ignorant punks who can't realize what the truth is. Ron Paul is the future. If you like being lied to, and believe a race makes any difference with politics, Wake up! your only helping that racist s***. Google Ron Paul, study the facts, before you talk s***.
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Comment by Bijou BAKSON on August 8, 2011 at 9:36am
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How come all the states in the worlds are in debt? Who owes who? Somebody's gotta be the creditor!
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Comment by alexander on August 7, 2011 at 11:30pm
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f*** all tea baggers and ron paul supporters.... people like this really are holding the future back! f****** white devils and cowards..DIE ALREADY!!!
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