Standard & Poor's made a tiny $2 trillion mistake when rating the US economy

[Troll_Whisperer]

irstupid said:

Troll_Whisperer said:

irstupid said:

HappySqurriel said:
The United States federal government is like a household that earns $60,000 per year, while spending $90,000 per year, and has a net debt of $300,000 ...

Regardless of the projections of where they will be a decade from now, the United States federal government's bonds are not a AAA investment; and I would argue AA+ is an optimistically high rating.

this, i still don't get how the government thinks that kind of thinking will work

 

and yea today was first i heard of this AAA, AA+ ect ratings.  What the hell are these?  why the soo many A's?  is this where the stupid ass video games got tehir AAA ratings from?  copying this?

Also I like how this company who rates us said flately "If you don't cut 4 trillion dollars you will drop" we cut only 2 trillion, and the democrats are wondering why the hell we dropped.  I mean i'm not econ expert and don't know how all this is figured out, but if someone tells me that something will happen cause an effect, i'm not confused on when that happens. 

Basically, the lower your rating is, the more risky your bonds are considered, and the more interest you have to pay to those who buy your debt.

I KNOW What the ratings mean, i was just wondering why the hell they thought the need to be AAA, AA+, ect and not A, B, C, ect.  why the soo many A's.

That I don't know. They have many different rates (over 20), I guess it's easier to realise how high a bond is rated using this system.