For those of you who don't know: S&P, Moody's and Fitch are equivalent to the consumer credit reporting rating companies Transunion, Experian and Equifax. S&P has already downgraded our credit rating to AA+ from AAA. Which would be like our FICO score being reduced. Now Moody's is confirming the grim path our economy is on.
President Obama said, "We're a AAA+ country, always have been, always will be." lol that would be like a person with a 600 FICO score claiming to be an 800 FICO score and demanding businesses treat them as such, even though their credit report proves otherwise!
The media has been falsely reporting that the U.S. is a AAA rating again. Let me explain why that is very misleading. We are still a AA+ rating with S&P, Moody's lowered our economic growth expectation and Fitch has kept our credit rating at AAA. It's like having 3 different FICO scores on your credit report. When applying for credit anywhere, the average or middle score is usually chosen to determine your credit worthiness. So when we look at the U.S. economy credit report, look at Moody's low economic growth expectation. Meaning we are on our way to be downgraded... no improvement on the horizon is visible! :/
And to all of you in the media who I keep hearing decry President Obama is not to blame for our current economic condition. He knew what he was "inheriting" when he applied for the position of President of the United States of America. So all I have to say to you loyal Obama supporters is that I wouldn't want him standing next to me if I were to suddenly suffer a heart attack or found myself choking to death. Why? Because he would just be standing there dumbstruck watching me die instead of reacting immediately to save my life.
No, dumbstruck is not the correct word to describe him because he has not been rendered speechless. That's all he's done is given speeches. The correct word to describe President Obama is CONFOUNDED.
And to all of you in the media who I keep hearing decry President Obama is not to blame for our current economic condition. He knew what he was "inheriting" when he applied for the position of President of the United States of America. So all I have to say to you loyal Obama supporters is that I wouldn't want him standing next to me if I were to suddenly suffer a heart attack or found myself choking to death. Why? Because he would just be standing there dumbstruck watching me die instead of reacting immediately to save my life.
No, dumbstruck is not the correct word to describe him because he has not been rendered speechless. That's all he's done is given speeches. The correct word to describe President Obama is CONFOUNDED.
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Wall Street Journal
written by Tess Stynes
Monday August 15, 2011
Moody’s Analytics said its near-term outlook for the U.S. economy has fallen significantly in the past month wake of the debate over the U.S. debt ceiling and the downgrade of the nation’s credit ratings by Standard & Poor’s .
Moody’s Analytics, a sister company to credit-ratings company Moody’s Investors Service, now expects real gross domestic product to increase at an annualized rate of about 2% in the second half of this year and just over 3% next year, compared with its estimate a month ago for growth of 3.5% for the second half of this year and through 2012.
The firm attributes most of the expected decline to a loss of business, investor and consumer confidence, noting the economy’s improving fundamentals such as the strengthening of business’s balance sheets and consumers’ strides in cutting household debt.
The credit-rating company also said it thinks the odds of a renewed recession over the next 12 months — now at 1 in 3 — will increase if stock prices continue to fall. Moody’s maintains that the odds of a renewed recession rise with each 100-point drop in the Dow Jones Industrial Average. While Moody’s expects the economic recovery will continue, prospects for economic growth and job creation have “diminished substantially.”
Though the U.S. economic recovery looked healthy at the beginning of the year, a series of events have hurt business, consumer and investor confidence, Moody’s said. These include surging prices for food and gasoline, natural disasters in Japan, Europe’s debt crisis and, most recently, the U.S. debt woes.
The economy needs to grow 2.5% to 3% a year to create jobs fast enough to keep the unemployment rate stable, Moody’s said. However, Moody’s said it doesn’t think this will happen soon.
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