With the S&P downgrade, what next?

jmski52

Is there ANY chance that Congress will actually make any meaningful changes that would support the dollar sufficiently enough to stop it from deteriorating further.

I don't think so. Do you?

CaptHenway

Nope!

PerryHall

<< <i>Is there ANY chance that Congress will actually make any meaningful changes that would support the dollar sufficiently enough to stop it from deteriorating further. >>



Was this a serious question?

57loaded

S&P took some heat from Moody's and (?) for yesterday's decision.

these same co's were rubber stamping anything AAA to sell overseas. contracts were not read, just that AAA rating was all it took for the derivatives to be sold like drugs to an addict.

JCMhouston

I can't believe that anyone even cares what S&P and the other agencies have to say.

And no, I don't think either party will come up with a solution, way too much polarization to do anything reasonable or meaningful. The far right wants to cut essentially all government services, let BP exec's decide environmental policy and the JP Morgue bankers decide fiscal policy, and we'll even let them police themselves. All in the name of some utopian "free market" economy that simply can't exist in todays world. The far left is still wondering why we can't all just get along, and oh by the way the "rich" need to pay for everything for the "less fortunate".

Somewhere in all this there is a relatively simple way out, but I can't see either party careing.

As an example, if you need to fix Social Security and Medicare - prety simple actually, people pay the full tax on all their earned income. Every year in about August I get a pay raise because I've reached the maximum contribution for these, I really don't see why there needs to be a maximum contribution and that appears to be the most painless way to fix the problem. Sure it costs me and others in my income bracket a few extra dollars but so what, do you prefer the option of letting "the market" determine what health insurance you can buy when you are 70 years old? Anyone that thinks that's a workable solution is absolutely living in a dream world.

57loaded

maybe it isn't the big deal?

i like Art Cashin a lot.

cohodk

<< <i>Is there ANY chance that Congress will actually make any meaningful changes that would support the dollar sufficiently enough to stop it from deteriorating further.

I don't think so. Do you? >>



Largely this is a non-event. Talk of US default is barely worth the breather to speak it.

However, hopefully this action by S&P will rile the masses enough to put some pressure on our elected officials. How angry can WE get?

I would also note that the USA was put "on watch" back in 1996 while budget battles waged.