Basil Brush Posted 6 August 2011 Posted 6 August 2011 Breaking news... The USA credit rating has been downgraded...The knock on effect will be cataclysmic for the worlds financial markets. Is this the end of the world as we know it?
SOCCERROO FOX Posted 6 August 2011 Posted 6 August 2011 There will be a massive knock on effect. The US is already in dire straits i've not been but by all reports some places look like ghost towns and third world esq after the banks have forclosed and boarded up 1000's of homes. Wouldn't want to be close to retiring your superannuation funds have just been stripped of thousands.
MC Prussian Posted 6 August 2011 Posted 6 August 2011 Some places in Indiana look more deserted than in Afghanistan. Ghost Country. That's what you get for overspending money you don't have on toys that you don't need and wars you shouldn't wage. Where's the spirit of '76 gone? Allen Iverson must've taken it with him when he left for Turkey.
Jordan Posted 6 August 2011 Posted 6 August 2011 That's what you get for overspending money you don't have on toys that you don't need and wars you shouldn't wage. There should be more blame placed at the hands of those responsible for "deregulation" of securities markets (particularly regarding mortgage derivatives), which IMO is responsible for a massive chain-reaction leading to the housing bubble bursting spectacularly. Note to supply-side economics fans: Wealth does not trickle down, but strife pours down. Where I live, the tough times are more hidden. Homes are being sold (if you can get approved for a mortgage, 30-year fixed rate terms are at remarkably low rates, and 15-year fixeds are at a historic low), but prices are lower than they were 5 years ago. A year and a half ago, my village's Main St and surrounding area had a lot of FOR LEASE signs where business storefronts once were, but that has, for the most part, changed and our little downtown is so much more lively and full of day-trippers on weekends. But the trouble is having a much greater effect in ways that are much less visible on the surface. I volunteer at a community food pantry for our village, and we've noticed a huge spike in families seeking assistance from us. This month's food pantry served the largest number of families we've helped since the organization started. Some of this may be due to better funding, organization, and word-of-mouth as we have become more established. We are not very restrictive in who we can help, also, but I'd be pretty sure nearly everyone we help can use the assitance. Our immigrant neighbors and our home-bound elderly neighbors might be struggling to get by but they don't seem to make the headlines when the Dow Jones Industrial Average drops 500-something points. Also, use of "food stamps" in Westchester County has increased 91% over the past year, if I've read those statistics correctly. Places like Indiana (anywhere in the Rust Belt, really) are also hurting because the U.S. doesn't manufacture nearly as much as we once did. An overwhelming majority of employed Americans work in some sort of service or service-related industry. I mean, we had a GM factory here, too, but that has long since been torn down, and it's strange vacant lot is both a relic of a bygone era and a monument to both pollution and bureaucratic inefficiency as there has been a plan to rebuild it into a new downtown since forever ago. Every bit of good news is offset by something bad as there are echo effects of every collapse. Another worry is that Americans used more credit in June than ever before--presumably for everyday necessities that are most often not purchased with credit, just to "get by." But if those payments aren't met, we could see a mini-credit collapse. Every grand plan to help this country fight back--whether it be economic stimulus or health care reform--has been maimed by backwards forces in Washington and their corporate donors. The current political discourse has been hijacked by the greedy and the insane. Now, we're facing austerity measures without any tax increases, and I can't think of a single example of austerity actually helping a country rebound from recession. I worry that we blew a great chance to recover from the collapse of 2007/8 and the struggles will continue for a long time.
MC Prussian Posted 6 August 2011 Posted 6 August 2011 There should be more blame placed at the hands of those responsible for "deregulation" of securities markets (particularly regarding mortgage derivatives), which IMO is responsible for a massive chain-reaction leading to the housing bubble bursting spectacularly. Note to supply-side economics fans: Wealth does not trickle down, but strife pours down. Where I live, the tough times are more hidden. Homes are being sold (if you can get approved for a mortgage, 30-year fixed rate terms are at remarkably low rates, and 15-year fixeds are at a historic low), but prices are lower than they were 5 years ago. A year and a half ago, my village's Main St and surrounding area had a lot of FOR LEASE signs where business storefronts once were, but that has, for the most part, changed and our little downtown is so much more lively and full of day-trippers on weekends. But the trouble is having a much greater effect in ways that are much less visible on the surface. I volunteer at a community food pantry for our village, and we've noticed a huge spike in families seeking assistance from us. This month's food pantry served the largest number of families we've helped since the organization started. Some of this may be due to better funding, organization, and word-of-mouth as we have become more established. We are not very restrictive in who we can help, also, but I'd be pretty sure nearly everyone we help can use the assitance. Our immigrant neighbors and our home-bound elderly neighbors might be struggling to get by but they don't seem to make the headlines when the Dow Jones Industrial Average drops 500-something points. Also, use of "food stamps" in Westchester County has increased 91% over the past year, if I've read those statistics correctly. Places like Indiana (anywhere in the Rust Belt, really) are also hurting because the U.S. doesn't manufacture nearly as much as we once did. An overwhelming majority of employed Americans work in some sort of service or service-related industry. I mean, we had a GM factory here, too, but that has long since been torn down, and it's strange vacant lot is both a relic of a bygone era and a monument to both pollution and bureaucratic inefficiency as there has been a plan to rebuild it into a new downtown since forever ago. Every bit of good news is offset by something bad as there are echo effects of every collapse. Another worry is that Americans used more credit in June than ever before--presumably for everyday necessities that are most often not purchased with credit, just to "get by." But if those payments aren't met, we could see a mini-credit collapse. Every grand plan to help this country fight back--whether it be economic stimulus or health care reform--has been maimed by backwards forces in Washington and their corporate donors. The current political discourse has been hijacked by the greedy and the insane. Now, we're facing austerity measures without any tax increases, and I can't think of a single example of austerity actually helping a country rebound from recession. I worry that we blew a great chance to recover from the collapse of 2007/8 and the struggles will continue for a long time. On one hand, I really do like America. For what its ideals represent, but these ideals have been deconstructed and torn apart on purpose in the past, say, 40 to 50 years. The mechanics behind waging war or being involved in warfare are a $$ factor and the US military, including the secret services, have discovered their own fountain of gold. Presidents of both colours have to pour in (or had to pour in) massive amounts of your BDP into developing new military technology, buying new "toys", recruiting more and more young (and oftentimes uneducated) Americans. All of it just for the sake of maintaining presence and influence. Meanwhile, one after the other, US states have to declare themselves bankrupt. California a few years ago (anyone remember the tent cities in the outskirts of Sacramento? I never thought it'd come to that), and most recently Minnesota. States can't pay their employees, people in the health care sector, teachers, maintenance workers, police officers, etc. Highways are left to fall apart because they can't afford to pay for tarring, schools have to be closed, the unemployment numbers are growing daily and I dread to think what happens when the rating companies start to strip off the Triple A label. Obama being spouted a "socialist" (which right-wing media, in their constant with-hunting, automatically declare as "marxism" or "communism") for the idea of introducing Universal Health Care. I have seen places in the Midwest that brought a tear to my eye. Places that are left to rot, abandoned, with people solely occupied to make it through the day. No joy, no laughter, only sadness around. I have looked into eyes of despair and sadness and it has me struggling to figure out where and when (and mostly why) it all went so wrong. It speaks for itself when the most trusted source of information can be found on a TV channel called Comedy Central. Jon Stewart and Stephen Colbert are the antidote to the tripe that is aired on most television channels. Programmes that are meant to dumb down a vast majority of the population so they don't speak up and don't ask questions. All of this is a welcome field of study for other nations. The Chinese just recently openly criticised the way in which the US are heading. China has overtaken the U.S.A. in terms of productability and growth. But of course, everyone knows under what conditions this has developed and that they might have to pay their own price in a few years for this rapid growth. The US at the moment are inches away from crumbling under the weight of their debts - 28 trillion? And all the Congress and the Senate and Democrats and Republicans can agree upon, after weeks of constant bickering, is to minimize that debt by a mere 2 trillions (less than 10%)! I don't know if you can call that a democracy - it's more an oligarchy for the few who have the necessary contacts and the necessary means (regardless of how that wealth came about). The US are just such an ambiguous country - and I'm not saying others aren't. It's in the mix. Jordan - America needs a fresh start. Or will the US ever learn from its mistakes? Or will there ever be a true democracy on American grounds, with more than just two (dangerously alike) parties?
Webbo Posted 6 August 2011 Posted 6 August 2011 This is still Gordon Brown's fault right? If we'd followed Labours solution of even more borrowing then we'd probably have our credit rating down rated too.
Daggers Posted 6 August 2011 Posted 6 August 2011 If we'd followed Labours solution of even more borrowing then we'd probably have our credit rating down rated too. I love the way there's only ever a Tory or Labour solution to a problem.
sdb Posted 6 August 2011 Posted 6 August 2011 If we'd followed Labours solution of even more borrowing then we'd probably have our credit rating down rated too. I'd rather 'probably' be in the shit right now than definitely be in it. Actually I'd rather be on holiday...George!!
Webbo Posted 6 August 2011 Posted 6 August 2011 I love the way there's only ever a coalition or Labour solution to a problem. Sorted.
Webbo Posted 6 August 2011 Posted 6 August 2011 I'd rather 'probably' be in the shit right now than definitely be in it. Actually I'd rather be on holiday...George!! Definitely in the shit? Lets get this straight, none of this is Labours fault it's world events, but it's definitely the Tories fault?
MC Prussian Posted 6 August 2011 Posted 6 August 2011 Oh yeah, forgot to mention. AAA rating gone - now "only" a AA+. It could go down even further - a "superpower" in freefall. A Double Dip just waiting around the corner. Where's Superman when you need him? Probably made redundant, just like hundreds of thousands alongside him.
sdb Posted 6 August 2011 Posted 6 August 2011 Definitely in the shit? Lets get this straight, none of this is Labours fault it's world events, but it's definitely the Tories fault? I'm giving the Tory supporters a taste of their own medicine. Last time it was all Gordon Browns fault apparently, so I'll be equally as thick and annoying and same the same to their party.
Webbo Posted 6 August 2011 Posted 6 August 2011 I'm giving the Tory supporters a taste of their own medicine. Last time it was all Gordon Browns fault apparently, so I'll be equally as thick and annoying and same the same to their party. But Britain's credit rating hasn't been down graded? Unemployment is going down. Times are hard and are likely to be for a few years yet but we're moving (all be it very slowly) in the right direction. What's your problem?
SOCCERROO FOX Posted 6 August 2011 Posted 6 August 2011 I read that the US GDP compared to it's debt is in the high 90's where Australias who has a reasonable economy atm is around 26%. High 90's is massive and clearly not sustainable
broughtonblue Posted 6 August 2011 Posted 6 August 2011 This is still Gordon Brown's fault right? Not his solely, but please don't use the name of the person, who as chancellor sold off the countries gold reserve when prices were at an all time low, as being some sort of financial genius!!!
ramboacdc Posted 6 August 2011 Posted 6 August 2011 I love the way there's only ever a Tory or Labour solution to a problem. thats because the third option is now part of the tories and the other solution is "final"
Daggers Posted 6 August 2011 Posted 6 August 2011 thats because the third option is now part of the tories and the other solution is "final" I love the way people refuse to consider the world outside the three main political parties.
heatherfox Posted 6 August 2011 Posted 6 August 2011 At the end of the day nations have borrowed too much and now the day of reckoning has arrived. They simply have to cut back what they are spending to come in line with what they can generate as tax income- harsh as that is. The only only other alternative is to stick two fingers up to the bond markets and take the consequences - i.e. higher interest rates from anyone who is prepared to lend.
Webbo Posted 6 August 2011 Posted 6 August 2011 I love the way people refuse to consider the world outside the three main political parties. UKIP?
Father Ted Posted 6 August 2011 Posted 6 August 2011 If Britain had some sense they would dump America and join forces with Russia and China (thats what I'd do) but Cameron hasn't got the balls. As they say, what comes around goes around and its a slippery slope for the yanks now, and tbh I hope they slide right down it, with all the atrocities they've caused around the world and thinking they own the world.
Daggers Posted 6 August 2011 Posted 6 August 2011 But Britain's credit rating hasn't been down graded? Unemployment is going down. Times are hard and are likely to be for a few years yet but we're moving (all be it very slowly) in the right direction. What's your problem? The only time I refer to this direction as being the right one is when I'm flushing stuff down the shitter.
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