US Credit Rating Cut by Egan-Jones ... Again

[BRU]

but but...lefty was jumping for joy last night ...bring on the quantitative easing!

duh

Ratings firm
Egan-Jones cut its credit rating on the U.S. government
to "AA-" from "AA," citing its opinion that quantitative easing from the Federal
Reserve would hurt the U.S. economy and the country's credit quality.


The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market. (Read more: Fed's 'QE Infinity' — Four Things That Could Go Wrong)In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar.
In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.
In April, Egan-Jones cuts the U.S. credit rating to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt.
Moody's Investors Service [MCO Loading... () ] currently rates the United States Aaa, Fitch rates the country AAA, and Standard & Poor's rates the country AA-plus. All three of those ratings have a negative outlook.

http://www.cnbc.com/id/49037337

 

[888888]

Can you explain to us poor people what this cut is going to cost us? Since were being asked to either go without or pay more of the cost of govt already, do you really think an AA or an AA- is really going to make my tomorrow any better or worse?

HEY BRU, I have yet get an answer from anyone, where is all the tax money that we used to collect, 2 trillion, 24 billion and some odd dollars that went to those in the top 1% of the most wealthy people in our country. You know the money that we were told by the republicans under Bush that if we allowed these people to keep more of their income they would in return create jobs and make the economy grow. Why are we still doing this when it's a prov-en fact that it didn't work, and why would we want to increase that amount to them like Romney wants to do.

Do you know who is picking up the cost of all the things that the fed govt no longer has the money to help the states and local govts with. Why of course, it's the middle class who has to pick up all the cost, or do without.

right now today 600,000 new business corp's set up each year, the same as 11 years ago. Out of those 600,000 400,000 are non employee corp's(set up for tax perpose). the average cash influx for these corp as out of pocket money by the owner is around 90,000. Now we have been giving the top 1%(2.3 million tax payers) a gift of 80,000 each and every year. Yet they haven't started any more new corps than we did before we gave them gift of lower taxes.

The wealth of the top 1% has increased greatly over the last 11 years, but the average citizen has shown a decrease, WHY IS THAT BRU?

 

[colfax]

Can you explain to us poor people what this cut is going to cost us? Since were being asked to either go without or pay more of the cost of govt already, do you really think an AA or an AA- is really going to make my tomorrow any better or worse?

The interest rate on your credit card and mortgage will reflect it.

That's how.

Also the cost of imported goods at your local Wal-Mart will be higher.

Everything imported will cost more, but I am no economist, so the full ramifications aren't known by me.

 

[BitterPill]

but but...lefty was jumping for joy last night ...bring on the quantitative easing!

With Congress doing nothing, the Fed stepped in. Still, I don't think the credit downgrade will cost us any extra money, so your happiness is a bit short-lived.