S&P and the credit rating.....

[MYBAD79]

And we wonder why S&P cut the US credit rating.



2011 Federal Budget: $3,820,000,000,000 (3.82 Trillion)

2011 Income: $2,170,000,000,000 (2.17 Trillion)

New Debt: $1,650,000,000,000 (1.65 Trillion)

Amount Cut: $38,500,000,000 (38.5 Billion) – about 1% of the total budget.



Harry Reid is calling this a “historic amount“. The President said it is a “historic deal”. John Boehner simply said, “We’ve come to an agreement”.

Let’s Put This In Perspective. It helps me to think about these numbers in terms that I can relate to.

Let’s remove nine zeroes from each of those numbers and pretend this is a monthly household budget for the fictitious “Jones” family.

Amount of money the “Jones” family spent this month: $3,820

Total income for the “Jones” family this month: $2,170

Amount of new debt added to the credit card this month: $1,650

Outstanding balance on the credit card: $14,271 (This represents our national debt).

So last week, the “Jones” family sat down at the kitchen table and agreed to cut $38 from their monthly budget.

 

[big2bird]

Tax them Jones people now.:smash::smash::smash:

 

[redvetracr]

So last week, the “Jones” family sat down at the kitchen table and agreed to cut $38 from their monthly budget.

eventually China (oops I mean their bank) will stop lending the Jones family money, then they get to file for bankruptcy protection.....the USA won`t be that lucky.

 

[BBShark]

So last week, the “Jones” family sat down at the kitchen table and agreed to cut $38 from their monthly budget.

The Jones family agreed to cut $38 from their YEARLY budget (if the bank raised their credit limit by $2500.00)!

I'll bet the "Jones" family uses those cash advance checks to make the credit card payment.

 

[mrvette]

So last week, the “Jones” family sat down at the kitchen table and agreed to cut $38 from their monthly budget.

eventually China (oops I mean their bank) will stop lending the Jones family money, then they get to file for bankruptcy protection.....the USA won`t be that lucky.

WHY NOT?? just repudiate the debt, while we have the overwhelming .mil power to enforce it....

20 years from now, I see it as being a disASSter for the USA, so let's just ease the pain and strike NOW....

:thumbs::harhar:

 

[BBShark]

This is cool. Solve the deficit problem:

http://www.nytimes.com/interactive/2010/11/13/weekinreview/deficits-graphic.html

 

[DeeVeeEight]

So last week, the “Jones” family sat down at the kitchen table and agreed to cut $38 from their monthly budget.

The Jones family agreed to cut $38 from their YEARLY budget (if the bank raised their credit limit by $2500.00)!

I'll bet the "Jones" family uses those cash advance checks to make the credit card payment.

Is that what they're for? The bank keeps sending them to me but I don't know what to do with them. You mean you can really spend them? I mean how? I have no money in my account to back them up with. You mean I can still use them? Isn't there something fundamentally WRONG with that? No? You say just go ahead? I can just make minimum monthly payments?

It's a shame - all of these banking issues, credit issues, mortgage crisis issues (remember that one? it was not so long ago and housing and banking is still all fucked up) that are created by corporate mobsters still go unchecked and the mentality in washington remains so stubbornly entrenched with it's head up it's ass and it's hands groping for the tax payers few remaining crumbs.... You know we are going to pay for this. The black hole like vacuum of politics and corporate greed is sucking us all in.
There needs to be a friggin' revolution. Wipe these assholes clean out and start over again. What is gonna' happen if we don't pay China? Are they going to send Guido over to persuade us to make good?
I have a bad feeling that we are going to end up in another frigging war - it seems to be the only way our governments know of cleaning house and distracting the publics attention away from the real issues.

 

[DC3]

Assuming there are about 300 Million people in the US and assuming about half are children and assuming only half of the rest actually pay taxes, the rest of us are looking at owing $22,000 each in new debt.

Wow! I could've had a V8 (LS9 specifically).

DC

 

[mike76c3]

Can't remember where I got this from, but it was online yesterday:

Having Standard & Poor's downgrade the creditworthiness of the U.S., and warn the country about further downgrades, is a little like having the Catholic Church lecture Scout leaders on the proper behavior toward boys. The moral authority seems to be wanting. S&P, you may recall, is one of the ratings agencies (the others being Moody's and Fitch) that greased the skids of the financial crisis by awarding AAA ratings to tranche after tranche of mortgage bonds called collaterized debt obligations, or CDOs. Recall that, unlike U.S. Treasuries, backed by the full faith and credit of the U.S., CDOs were underwritten by garbage mortgages — that is, backed by no-documentation “liar loans” and other Alt-A subprime pond scum handed to borrowers who otherwise couldn't get a nickel's worth of credit at their local dry cleaner. S&P stamped CDOs with the same grade it previously awarded to a precious few companies, including Exxon and Microsoft. More than 30,000 CDOs got the AAA blessing from the agencies.

Also, I can't find the quote at the moment, but I remember that companies pay S & P to get the ratings.

And, all it takes is an increase of 1% to the interest rate that the government pays to wipe out the savings from the budget cut.

Mike

 

[DeeVeeEight]

Bohica ! ! ! ! !

 

[Kid Vette]

This is cool. Solve the deficit problem:

http://www.nytimes.com/interactive/2010/11/13/weekinreview/deficits-graphic.html

I did it in 5 minutes. So why does it take so long in Washington!!! :smash:

 

[Ralphy]

I saw this today. Aired on of all stations msnbc. You have to listen to the whole thing, it gets lively halfway through. Dylan Ratigan is the man.

http://www.msnbc.msn.com/id/21134540/vp/44079837#44079837

 

[BBShark]

This is cool. Solve the deficit problem:

http://www.nytimes.com/interactive/2010/11/13/weekinreview/deficits-graphic.html

I did it in 5 minutes. So why does it take so long in Washington!!! :smash:

Hell, I did it in five minutes with a surplus!

 

[Belgian1979vette]

5 minutes and i kept the trouble away for all you ordinary folks...

Anyway, we all now how they are going to solve this problem : printing dollars and inflating their way out of it. Same problem all over the globe. Not a bit better over here either.

 

[Ralphy]

This is wild. Watch the lower uncut version.
http://www.glennbeck.com/2011/08/11/epic-viral-video-rant-against-obama-language-warning/