Fitch downgrades U.S. after debt limit stalemate

[mystery-ak]

Fitch downgrades U.S. after debt limit stalemate

The downgrade marks the second time in the U.S.’ history that a major credit agency has downgraded its debt. | Miguel Medina/Getty Images

Fitch Ratings on Tuesday downgraded the U.S. government’s credit rating, after a partisan clash over its borrowing authority threatened default earlier this year.

Fitch lowered the U.S. debt rating to AA+ from AAA. The firm cited repeated debt-limit political standoffs, an inadequate fiscal framework and a complex budgeting process.

The announcement, which Fitch had warned might come for months, triggered an immediate rebuke from Biden administration officials including Treasury Secretary Janet Yellen.

“The change by Fitch Ratings announced today is arbitrary and based on outdated data,” Yellen said.

more
https://www.politico.com/news/2023/08/01/fitch-downgrades-u-s-debt-00109288

[libertybele]

Joy!  Yellen needs to go as well as most of the members of our Congress!!

[DefiantMassRINO]

Government Spending needs to decrease and US GDP needs to increase:

[catfish1957]

“The change by Fitch Ratings announced today is arbitrary and based on outdated data,” Yellen said.

more
https://www.politico.com/news/2023/08/01/fitch-downgrades-u-s-debt-00109288

Stupid Bitch.... quit lying to us.   

Hey Jan was the S & P downgrade 12 years ago arbitrary and outdated too?

[LMAO]

This is why fiscal conservatism is so important. How many of these downgrades are we gonna get in the coming years?

[Kamaji]

This is why fiscal conservatism is so important. How many of these downgrades are we gonna get in the coming years?

This one is survivable - it's happened before - but another downgrade or two, and U.S. debt suddenly becomes a lot more expensive to service - higher interest rates and etc.

[catfish1957]

This one is survivable - it's happened before - but another downgrade or two, and U.S. debt suddenly becomes a lot more expensive to service - higher interest rates and etc.

The fact the silly Bite-Me Admin is lashing out and shifting blame instead of formulating corrective measures is all you need to know about these amatuers running this country's economy.  Considering some of the gruff is coming off this shell game leads me to believe that this particular slap at our credit rating isn't as servicable as we think.

Even as bad as the S & P rating slap was 11 years ago, the Debt to GDP ratio then was 86%, now it is north of 130%. Hate to be a doom and gloomer, we have pretty wore that credit card out, and the rest of the world is tired of having to foot the bill for our own country's fiscal mismanagment.

Watch for a few foreign soverign moves, then corporate moves  yanking debt from US bonds....   and then watch out.

[LMAO]

The fact the silly Bite-Me Admin is lashing out and shifting blame instead of formulating corrective measures is all you need to know about these amatuers running this country's economy.  Considering some of the gruff is coming off this shell game leads me to believe that this particular slap at our credit rating isn't as servicable as we think.

Even as bad as the S & P rating slap was 11 years ago, the Debt to GDP ratio then was 86%, now it is north of 130%. Hate to be a doom and gloomer, we have pretty wore that credit card out, and the rest of the world is tired of having to foot the bill for our own country's fiscal mismanagment.

Watch for a few foreign soverign moves, then corporate moves  yanking debt from US bonds....   and then watch out.

And the only thing the two party front runners are offering is even more debt and spending

[Free Vulcan]

The forceful table pounding of Yellen and the Biden admin just reeks of weakness. Keep mud daubin' the cracks in that dam there Janet.

[Elderberry]

Legal Insurrection by  Leslie Eastman Wednesday, August 2, 2023

How much lower can it go? With Biden, the Mariana Trench of depths is possible.

The timing of the indictment of former President Donald Trump could not be more suspicious.

Not only is the event taking the media heat off the Biden news related to alleged foreign influence peddling, but it is also providing a distraction from a historic credit downgrade for this nation.

    Fitch Ratings downgraded the United States’ long-term foreign currency issuer default rating to AA+ from AAA on Tuesday, pointing to “expected fiscal deterioration over the next three years,” an erosion of governance and a growing general debt burden.

“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” said Fitch.

In May, the agency placed the nation’s AAA rating on negative watch, blaming the debt ceiling fight. At the time, lawmakers in Washington butted heads over an agreement that would keep the federal government from running out of money. President Joe Biden signed the debt ceiling bill on June 2, just days away from the “X-date” on June 5.

The country’s recent debt limit feud was mentioned again in Tuesday’s downgrade.

“In Fitch’s view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025,” the ratings agency said.

Stocks fell on the news.

    The Dow closed 348 points, or 1%, lower in Wednesday trading. The S&P 500 fell 1.4% and the Nasdaq dropped 2.2%, marking its worst performance since February.

    The 10-year Treasury yield hit its highest level since November. Bond prices and yields move in opposite directions, so falling Treasuries boost yields.

    Tech megacap stocks like Amazon, Meta, Microsoft, Tesla, Nvidia and Apple led market declines. Because the tech sector is so forward-facing, it’s particularly sensitive to interest rate changes.

More: https://legalinsurrection.com/2023/08/stock-market-sinks-after-u-s-credit-rating-is-downgraded-from-aaa-to-aa/

[DB]

Drip, Drip...

[Free Vulcan]

When are these stupid, naïve, Pollyanna leftists going to realize that Biden doesn't care if the country burns and they die, or the whole world for that matter, as long as he gets his payoff?

The market was churning and weak for a selloff, so I'm not distracted with the immediate dramatics, but from here forth is going to accelerate the slide till it blows up at the bottom that much faster.