Think this week was bad for stocks? Next week is going to be…very bad.
Due to the unwillingness of our government to spend within our means, and no projected end in sight to trillion dollar deficits, S&P has lowered our nations credit rating for the first time in history.
Urgent: Credit rating agency Standard & Poor’s on Friday downgraded the United States’ credit rating for the first time in the history of the ratings.
The credit rating agency said that it is cutting America’s top AAA rating by one notch to AA-plus. The credit agency said that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country’s debt situation.
While the GOP certainly does NOT have a good record on spending from 2000 to 2006, at the worst point, their deficit was around $400 billion. This years deficit is four times that amount. No wonder S&P believes our debt to be riskier these days. I can’t say that I blame them.
A picture tells a thousand words. This picture clearly explains why S&P decided what it did.
This would be a perfect time to point out another recent government credit rating change made by S&P.
Standard & Poor’s Ratings Services upgraded Ohio’s debt rating just one day after it put the United States on “creditwatch negative” on what it calls a rising risk of policy stalemate in the debt limit negotiations.
For Ohio, the rating was revised from “negative” to “stable” after Gov. John Kasich signed a new budget the ratings agency says will essentially balance the state’s finances for the next two years. S&P also said Ohio is experiencing a modest economic recovery which has stabilized revenue.
So, while Obama has been destroying our nation’s credit rating, John Kasich has actually improved Ohio’s outlook. I wonder how Ohio Democrats will spin this one.
