Fitch Ratings on Tuesday downgraded America's long-term foreign currency rating, citing the country's deteriorating fiscal position — and the frequently chaotic process driving governance decisions.
State of play: Fitch cut the country's default rating from a pristine AAA to the next level down, AA+. The ratings agency said rising debt levels and a polarized political culture is making the U.S. a less dependable payor of its debts.
The agency had previously put the country on downgrade watch.
Why it matters: Although largely symbolic, Fitch's decision signals Washington's "steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters."
“Life is a shipwreck, but we must not forget to sing in the lifeboats.”
― Voltaire
This slogan is turning into a magnificent self-own. Whomever thought it up handed Trump the 2024 election.
Larry Summers - Obama's NEC director - just last week said that "Bidenomics" is going to cause the economy to crater within the next 16 months. Just days after he said that, the U.S. gets its second sovereign debt downgrade in 230 years.
Pack Rat wrote:if it quacks like a duck and walk like a duck, it's still fascism
And have no doubt, things are really bad for Fitch to actually take the risk of a downgrade.
When S&P downgraded 12 years ago it was immediately raided by the FBI and then sued for $5 billion by the U.S. government over "unrelated" issues that - coincidentally - all came to light within weeks of the downgrade.
Nobody downgrades the U.S. and keeps their legs unbroken.
Pack Rat wrote:if it quacks like a duck and walk like a duck, it's still fascism
----------In this area Southwest Detroit...50 small businesses , 3 banks, YES...3 BANKS have closed , boarded up...YEAH!!! Bidenomics ...Soon from AA to single A... AMERICA doing great... ... ...... ConfederateSS.out!(The Blue and Silver Rebellion)...
LOL!
So Saxi and other Confederates are actually praising an Obama economic advisor who appeared on CNN.
Obama? CNN?
Oh, that's right, anyone and anything that criticizes Biden is good in their unprincipled brains.
Meanwhile, after twelve months of predicting a recession banks and Wall Street say Bidenomics must have worked - it is his sunglasses.
Biden’s investments in infrastructure, clean energy, and semiconductors “are not just creating new factories and jobs, they are making our economy more resilient.”
Wall Street reversal: More and more economists are changing their minds and declaring US recession fears dead
And of course, Fitch downgraded the US debt because of Republican actions.
If they are willing to shut down the government and say they won't pay the debt, we have to downgrade it.
fwiw you can make a pretty nice bank inverse trading stories like this when they gain momentum. 9-12 months ago when everyone was screaming recession, it was actually generational lows you should have bought because we bounced hard from. Now the pundits are screaming 'recession isn't happening' probably means it's time to liquidate and find a nice cozy savings account paying 4-5% and sit in it for the next 6++months while we watch the world come apart at the seams
Confed mentioned 3 small regional banks closing, more of this is basically a guarenteed for the next 2-3 years as I highlighted in the spring. The feds basically made a list of top 15 US banks they will support at any cost, and left all small regional banks out to dry. This is the start of that wave, and frankly kind of mirrors high inflation in the 70s followed by savings and loan crisis under Reagen (at the micro level the details are all very different from then, at the macro level this is incredibly predictable and basically programed).
WILLIAMS5232 wrote:
as far as dukasaur goes, i had no idea you were so goofy. i mean, you hate your parents so much you'd wish they'd been shot? just move out bro.
GaryDenton wrote:And of course, Fitch downgraded the US debt because of Republican actions.
If they are willing to shut down the government and say they won't pay the debt, we have to downgrade it.
Quite a few people have pointed out that "poor governance for the last two decades" is a major contributor to the downgrade. Neither party owns this.
Also, here's a perspective (from perspectives. com lol):
THIS POLARIZATION WAS SUMMED UP by Richard Francis, a senior director at Fitch. “Clearly, if you look at polarization with both parties … the Democrats have gone further left and Republicans further right, so the middle is kind of falling apart basically.” More credit rating downgrades seem inevitable.
Dukasaur wrote:
Quite a few people have pointed out that "poor governance for the last two decades" is a major contributor to the downgrade.
+1
Senator Feinstein's daughter, Katherine, yesterday filed two lawsuits in San Francisco Superior Court on behalf of the senator acting as her power of attorney related to a very small real estate matter. The court has accepted Katherine to act as Senator Feinstein's power of attorney, determining that Feinstein is mentally incompetent to act in her own affairs.
One of the 100 votes in the Senate is being cast by a woman who was just judicially determined to be mentally incompetent and unable to care for herself.
Meanwhile, the spiritual leader of the Democratic Party in California, Meghan Markle -- whose claim to fame is topping Prince Harry with a strap-on -- has been lobbying Governor Newsom to be appointed to the Senate just as soon as Feinstein finally dies.
Is Gavin Newsom the latest big name to snub Meghan Markle and Prince Harry? Royal author and socialite Lady Colin Campbell claimed that the California governor has blocked Markle’s phone number in an attempt to distance himself, as her political demands continue to fall on deaf ears.
GaryDenton wrote:And of course, Fitch downgraded the US debt because of Republican actions.
If they are willing to shut down the government and say they won't pay the debt, we have to downgrade it.
Quite a few people have pointed out that "poor governance for the last two decades" is a major contributor to the downgrade. Neither party owns this.
Also, here's a perspective (from perspectives. com lol):
THIS POLARIZATION WAS SUMMED UP by Richard Francis, a senior director at Fitch. “Clearly, if you look at polarization with both parties … the Democrats have gone further left and Republicans further right, so the middle is kind of falling apart basically.” More credit rating downgrades seem inevitable.
ConfederateSS.out!(The Blue and Silver Rebellion)... 
