August 08, 2011

S&P Now Downgrades Fannie Mae and Freddie Mac

The hits just keep coming:

Standard & Poor's Ratings Services on Monday downgraded the credit ratings of Fannie Mae and Freddie Mac and other agencies linked to long-term U.S. debt.

The agency also lowered the ratings for: farm lenders; long-term U.S. government-backed debt issued by 32 banks and credit unions; and three major clearinghouses, which are used to execute trades of stocks, bonds and options.

All the downgrades were from AAA to AA+. S&P says the agencies and banks all have debt that is exposed to economic volatility and a further downgrade of long-term U.S. debt. Their creditworthiness hinges on the U.S. government's ability to pay its own creditors.

Expect the Obama Administration and their Democrat allies in Congress and the Media to now do the very best they can to utterly destroy Standard and Poor's.

They don't know how to solve problems nor do they care to learn how to avoid making the same mistakes over and over again.

They just intend to shoot the messenger (again), while reassuring Turbo Tax Timmy he's doing a great job on the way to default.

Posted by Confederate Yankee at August 8, 2011 10:30 AM

My only question on the Fannie and Freddie downgrades: what the hell took so long?

Because the Only Good Progressive is a Failed Progressive

Posted by: LibertyAtStake at August 8, 2011 10:40 AM

We now need to ask Congress to begin an investigation of Barney Frank. That would be icing on the cake.

Posted by: david7134 at August 8, 2011 12:10 PM

Destroy S%P - OR - blame everything on the Tea Party.

Posted by: Kevin at August 8, 2011 12:13 PM

All cheer the parade of the talking points: tea party, Bush, failure to compromise, Bush, tea party, racists, gun clingers, inherited mess, jobs created & saved, tea party, Bush. Repeat as often as needed.

Posted by: Parker at August 8, 2011 02:01 PM

Completely agree with LibertyAtStake - Fannie and Freddie should've been downgraded a LONG time ago! As for investigating Barney . . . I'm not holding my breath.

Posted by: Nina at August 9, 2011 09:39 AM