Item #1 of 2
DID TIM GEITHNER REALLY SAY THERE WAS ‘NO RISK’ OF A DOWNGRADE? LET’S GO…TO THE VIDEO…
Peter Barnes “Is there a risk that the United States could lose its AAA credit rating? Yes or no?”
Geithner’s response: “No risk of that.”
“No risk?” Barnes asked.
“No risk,” Geithner said.
Item #2 of 2
STANDARD & POOR’S DOWNGRADES U.S. CREDIT RATING FOR FIRST TIME IN HISTORY
Sadly, the fears have been confirmed. Standard & Poor‘s has downgraded the United States’ credit rating for the first time in the history of the ratings.
According to AP, the credit rating agency says that it is cutting the country’s top AAA rating by one notch to AA+. On Friday evening S&P said that the debt bill recently passed by Congress was not enough to stabilize the nation’s debt crisis.
AP also reports that a source familiar with the situation said that the Obama administration believes S&P’s analysis contained “deep and fundamental flaws.”
But the worst might be yet to come. The Wall Street Journal published the following press release from S&P that claims the rating agency could be downgrading the U.S. yet again to AA. The reason? S&P’s statement says the downgrade reflects “our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011:”