S&P Downgrades Fannie And Freddie, Others

The hit parade keeps coming. Liberal Talking Point by end of day: it’s the TEA Parties fault

Standard & Poor’s ratings service today announced it was downgrading the credit of Fannie Mae, Freddie Mac and 10 of 12 Federal Home Loan Banks that were propped up by the federal government after the financial crisis of 2008. S&P reduced their ratings one notch, to AA+ from AAA, its very highest rating.

The announcement was no surprise in light of S&P’s downgrade of the government’s debt on Friday evening, but the U.S. stock market — already spooked by Friday’s news — reacted negatively anyhow. The Dow Jones Industrial Average dropped nearly 375 points after the announcement before recovering somewhat. And the price of gold, considered a safe haven in uncertain times, topped $1,700 per ounce for the first time ever.

“The downgrades of Fannie Mae and Freddie Mac reflect their direct reliance on the U.S. government,” said Standard & Poor’s in a statement shortly after the markets opened today.

Wait, it’s the fault of The Government, including the bailouts? Who woulda thunk it? But, wait, it gets better!

“The states and locality ratings will be next because of the interest rates benchmarked against U.S. treasuries so there is a linkage between that debt,” he said. “In an environment of budget austerity this is not good for states and localities. This will trigger another closer look at state and local finances. Some states that were in trouble already and some in the bubble.”

Obama is scheduled to speak at 1pm Eastern time, so, turn on your TV or radio around, say, 115 when he deigns to show up, the better to hear him blame those evil rich with their corporate jets who just are being forced to pay their fair share, same old boilerplate, “I won’t let this happen”, “jobs are all I think about (between fund raisers)”, raise taxes (on job creators)….you know the script. Heck, you could build it yourself.

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3 Responses to “S&P Downgrades Fannie And Freddie, Others”

  1. Only 14 minutes away from another chance to worship the World’s Greatest Speechifier! This could be the one where he finally declares martial law to save the sinking economy!

    d(^_^)b
    http://libertyatstake.blogspot.com/
    “Because the Only Good Progressive is a Failed Progressive”

  2. PatriotUSA says:

    Of course it is all the Tea Party’s fault and then the first muslim potus can blame it on Bush. Oh those bad and nasty Conservatives! Shame,shame, shame.

    The left and those who worship bho will never cast the blame where it must be laid: on every administration that has been in power since FDR. It long past the time to be casting blame and pointing the finger(s) at the right, or at the left as both sides are EQUALLY at fault here. But the policies of stimulus infusion dollars has done nothing for this country except to push closer to the edge of the abyss.

    The world economy will quake and crack even deeper and wider now with the downgrading of the USA by S&P. Look at the markets today around the globe!

    What second recession are they talking about?? The first one has NEVER really ended except by those who spin numbers and facts which we all know are NOT an accurate picture of what is really going on with our economy and the global economic.

    The real continuing recession can be seen at the gas pumps and in the grocery aisles across our ravaged and flogged nation. Just look at the worn out and haggered faces of those you know and run across when out ‘shopping.’

    I suppose one advantage not having little in savings or investments is there is little for me and the Mrs. to lose. WE have somehow managed to hang onto our house which is amazing to the both of us as we are not quite sure how we have done so.

    One thing is for sure; we have hung on WITHOUT ANY assistance from the gov’t. We are so used to living from one check to the next I am not sure I would be able to do this any other way. Looks like any other ‘way’ might not come along in my lifetime anyhow. We fall down again and we just pick ourselves up and stagger onward, not necessarily upwards.

  3. Looks like Obama was something like 40 minutes late, and said the same old same old crap. Not only is he completely incompetent, but, everyone around him is incompetent.

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