2 votes

US Credit Rating Cut by Egan-Jones ... Again

US Credit Rating Cut by Egan-Jones ... Again

Published: Friday, 14 Sep 2012 | 3:43 PM ET
By: CNBC.com With Reuters

Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality.

The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market. (Read more: Fed's 'QE Infinity' — Four Things That Could Go Wrong)

In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar.

Read more: http://www.cnbc.com/id/49037337

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Added to Wikipedia

In light of the continuing downgrades, I just now renamed the Wikipedia page "United States federal government credit-rating downgrade, 2011" to remove the "2011" and created a new section within that page "Downgrades after 2011".


Also added WSJ reference regarding SEC retaliatory action against Egan-Jones following their April, 2012 downgrade from AA+ to AA.

AA- is still way too high.

Uncle Sam is $16,000,000,000,000 in debt. Words cannot describe the depth of naivete in assuming that all of this will be paid back.

A 30-yr bond is a donation, not a loan.


A 30-yr bond is a donation, not a loan. Do you mind if I put that in the bottom of my chat box for a while?

“When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” – Dresden James

Go for it.

No need to attribute or anything either, I'm anti-IP :)