Showing posts with label ratings agencies. Show all posts
Showing posts with label ratings agencies. Show all posts

Saturday, August 5, 2023

This week's lucky number is 2

There's only one Speaker of the House who ever spent more than 300% of current tax revenues twice.
And there's only one Speaker of the House who has ever spent more than 300% of current tax revenues twice after both of which events the ratings agencies downgraded the U.S. debt.
 


 

Friday, August 4, 2023

The US debt downgrades of 2011 and 2023 have one thing in common: Nancy Pelosi's record of the four most fiscally irresponsible years in the post-war

Nancy Pelosi owns the record for the four most fiscally irresponsible years in the post-war, spending 316% of tax receipts in 2020, 276% in 2021, 310% in 2009, and 296% in 2010.

Her four years as Speaker 2007-2010 averaged current expenditures as a percent of current tax receipts of 251%, highest for any Speaker ever.

S&P downgraded the debt in August 2011.

The Boehner/Ryan interregnum averaged 219%.

Pelosi's next four years as Speaker 2019-2022 averaged 252% in overspending.

Fitch has now downgraded the debt in August 2023.

Taken all together, Pelosi's Speakership produced the worst overspending in the post-war at 251% of revenues. The excess has to be borrowed, ballooning the debt.

The ratings agencies sound the alarm bells no one else will ring, but they are mocked by all the experts, whose livelihoods depend on the scam continuing. 

 All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.     

-- US Constitution, Article One, Section Seven





 


Wednesday, January 2, 2013

OK, How Long Before The Ratings Agencies Downgrade Us Again?

I'd take bets, but that's illegal, so I'll just wager a hearty pat on the back that the next debt downgrade takes three months, tops.

Monday, December 31, 2012

Democrats Want To Kick The Sequestration Can To 2015

So reports Business Insider here:


On the spending side, the Democrats' offer would delay the "sequester" (automatic spending cuts) until 2015. This would cost an estimated $200 billion. But it would avoid the cuts to the military budget that the Republicans are so desperate to avoid.

If I were in charge of the ratings agencies if that passes, I would answer it with a swift rebuke and lower the credit rating again.

Tuesday, December 11, 2012

Rules For Radical Republicans: Bush Tax Cuts Edition

Rule 1: Power is not only what you have, but what the enemy thinks you have.

The enemy knows the Congress is a coequal branch of the government. The problem is the Republicans and the Speaker of the House do not. You actually have more power even than that. You have 30 Republican governors. Start using them.

Rule 2: Never go outside the experience of your people.

"New revenues from the rich" is the enemy's idea, not Republicans'.

Rule 3: Whenever possible, go outside the experience of the enemy.

Bush is ancient history. Time to make your own and repudiate the past. Pass something in the House which goes farther than Bush ever dreamed, and send it to the Senate to enrage the enemy.

Rule 4: Make the enemy live up to its own book of rules.

The enemy is funding gold-plated union jobs and pensions for federal and state workers at the expense of middle class Americans in the private sector who enjoy neither. It's time you reminded the middle class about that.

Rule 5: Ridicule is man's most potent weapon.

Use surrogates saying: Moochelle. Crony capitalist. Ideologue. Bolshevik. Dictator. Muslim sympathizer. Race baiter. Panetta flies cross country too much at taxpayer expense. The vice president thinks FDR talked to a television camera.

Rule 6: A good tactic is one your people enjoy.

Republicans can campaign, too. Go frequently to friendly territory and bring 2016 hopefuls with you.

Rule 7: A tactic that drags on for too long becomes a drag.

The idea of compromise became a drag a long time ago. Stop waiting for it. Go on the offensive instead.

Rule 8: Use different tactics and actions and use all events of the period.

The enemy is trying to combine everything into one event, "the fiscal cliff", which tells you they perceive they are at a disadvantage. They are. You need to keep the events separate and do things piecemeal. Raising the debt ceiling should come later, crossing the tax rates fiscal cliff should come first. Fight for spending cuts later with the debt ceiling, not now. Sequestration already gave you some spending cuts, which you should embrace.

Rule 9: The threat is more terrifying than the thing itself.

The greatest fear of the Democrats is a debt ceiling fueled government shutdown over spending cuts, but it wasn't the end of the world under Bill Clinton, and it won't be the end of the world if it happens in 2013. You actually won that in 2011. Do it again, except bigger, to satisfy the ratings agencies. Besides, it's red meat for the base.

Rule 10: Maintain a constant pressure upon the opposition.

No more appearances with the enemy, especially on the golf course. You are third in line for the presidency. Start acting like it. Visit Afghanistan to encourage the troops.

Rule 11: If you push a negative hard and deep enough, it will break through into its counterside.

The place you need to get to is the same place you were at two times when the president extended the Bush tax rates, so you should know the way. An uncompromising new insistence on tax reform and much lower tax rates might get you there. It changes the subject and focuses the argument on relieving the taxpayers. The president upped the ante. You need to see him and raise him. Aim for the moon, and you might get into orbit.

Rule 12: The price of a successful attack is a constructive alternative.

You might not get the radical tax reform, about which you must be deadly serious, but settling for making the Bush tax cuts permanent is a constructive alternative.

Rule 13: Pick the target, freeze it, personalize it, polarize it.

Focus your attention on answering the partisanship of individuals in the pundit class. Don't fire Tea Party men. Enlist them in attacking the enemy. They are good at it, and they will repay you with support later.

Wednesday, December 7, 2011

The Market is Not a Leading Indicator

It is a market that has followed . . . the ratings agencies, the Congress, the Fed, the EU appendage du jour. Anyone with any sense knows this and doesn't need an analyst to explain it to him. The smart money remains out of the market.

Herds keep following, and mostly in fear.

Today we're basically back to August 2 and the debt ceiling fiasco, falling then from the 1260 level and rising to it now.

This is a market longing for the days of QE II in late 2010 and early 2011, but it isn't happening, probably because Ben Bernanke doesn't want to be accused of getting Barack Obama reelected.

But all that QE really could do was reproduce a high level around 1360, last seen in June 2008 before all hell broke loose. 1560 might as well be Mt. Everest.

One false move and it's . . . say . . . 575.

Weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee!

Splat.

Tuesday, August 2, 2011

Standards are Inimical to the Left, That's Why Ratings Agencies are the Enemy

As here at Slate.com:

"If everyone hates the credit rating agencies, why won't anyone enforce the Dodd-Frank provision to dethrone them?"