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News Link • Government Debt & Financing

Coming Monday: Domino Ratings Downgrades

"The downgrade of U.S. federal debt could result in de facto credit downgrades of some state-level…debt, which has been priced and rated as if the federal government were the backer of last resort," Jason Schenker, president of Prestige Economics LLC, wrote in a note to clients Saturday. Mr. Schenker said the cost of refinancing debt is likely to become more expensive, which "could result in a further bleeding of state and local government jobs."... The downgrade poses another risk. "It's an extreme concern to any state if their ratings were to decline in any way," Scott Pattison, executive director for the National Association of State Budget Officers said in a interview before S&P made its decision public. "That could have significant impacts," such as higher borrowing costs over the long term, he said.

1 Comments in Response to

Comment by David Jackson
Entered on:

   I'll say it again: Standar & Poor's...Who?

   Now that these pathetic social and financial parasites have exposed themselves for the worthless, sel-involved pretenders that they have always been, the entire world should cease this opportunity to simply ignore them and marginalize them into oblivion!

   Has anyone noticed that the only downgrading that has taken place has been in the form of the gaggle of "something-for-nothings" who gamble in the stock market, and whine so loudly that it "thunders" every time they loose a "paper farthing". I checked, by looking out my window: The world, generally, hasn't come to an end. However, giving any credence to anything said or done by the freak show at S&P ought to.

   Hell, send you investment capital to Greece, Italy, or Spain. I'm sure they'll very much appreciate it and piss it away in the same judicious manner as they have all their prior wealth and investments. One really has to wonder, even as bad as things often seem and as totally corrupt and incompetent as the elitist politicos and money changers are, why everyone hasn't run the banks, cashed in their stocks and bonds, and moved every penny to some Turd World off-shore account. Though the U.S. is constantly being fleeced by national and international politically-connected thieves, the facts are that we still have some similance of property rights, considerable production and distrbution capability, a viable workforce, a willing consumer base, and more money to waste on failed foreign policies than just about anyone. We remain the fatted calf of international welfare and largese.

   I suppose that the telling tale of U.S. viability is probably a simple comparison of the vast numbers of people from nations around the world who want to live here, as opposed to the piddling numbers who "think" they want to leave. (I suggest that we create a fund that helps those who want to leave to do so - today!)

   No, the loosers in Congress won't go...They know a good thing when they manage to pervert it. There isn't anywhere else in the world where they would be able to find any type of employment. Con artists - foreign "diplomats", czars, and other social  thugs and parasites - are usually wise to their fellow-travellers and avoid them. Most of the rest of humanity would simply exile them from the "village".