S&P downgrades U.S. {honor} rating - CNN.com

Few governments detach the budget process from the debt-authorization process as the United States does, he famous.

The agency acknowledged the error, but said it was sticking with its decision. The administration official called it "a facts-be-damned decision ... Their analysis was access off replica Oakleys, but they wouldn't budge."
Editor's note: What do you think of the current rating? What does it mean for the hereafter of the U.S. economic? Share your thoughts on video by CNN iReport.
He pointed to the decision by Congress about if to extend the 2001 and 2003 tariff cuts for 1 pivotal area. "If you let them lapse for the high-income earners, that could give you variant $950 billion," he said.
U.S. Treasury officials received S&P's inquiry Friday p.m. and alerted the agency to one misdeed that inflated U.S. shortages by $2 trillion Oakley Sunglasses Cheap, said an administration lawful, who was not licensed to speak for attribution.
In London, the FTSE 100 closed off 146 points, or 2.7%, to close the week down almost 10%. Germany's DAX fell 2.78% to finish the week down almost 13%. And the French CAC 40 declined 1.26% to finish the week off 10.73%.
The G7 members are Britain, Canada, France, Germany, Italy, Japan and the United States.

(CNN) -- The Standard & Poor's rating agency announced Friday that it has downgraded the U.S. credit rating to AA+ from its top position of AAA.
"The downgrade reflects our opinion namely the fiscal coalition intend that Congress and the government recently agreed to falls short of what, in our outlook, would be essential to stabilize the government's medium-term debt dynamics," the agent said approximately the migrate, which was announced afterward the markets had closed.

Concerns about debt issues in Europe arose to battle with optimism that a positive U.S. jobs report denoted the American economy is not headed into a new recession -- the panicked "double-dip."





And, though the allowance deal that finally was approached will deliver at fewest $2.1 trillion in savings over the next decade, that will no suffice, he said. "It's going to be difficult to obtain further that -- at fewest in the approximate term -- and you do absence to get beyond that to get to a point where the debt-to-GDP ratio namely going to stabilize."


Congress should elbow some of the blame, he said. "The first thing it could have done is to have heaved the debt celining in a timely means so that much of this argue had been averted to begin with, as it had done 60 or 70 times since 1960 without that much debate."
The safest bets are stamped AAA. That's where U.S. debt has stood for years. Moody's first assigned the United States a AAA rating in 1917.


Rating agencies -- S&P, Moody's and Fitch -- diagnose risk and give debt a grade that is assumed to reflect the borrower's competence to refund its loans.

The Dow Jones index spiked 170 points in early trading on a better-than-expected jobs report, yet then dropped by 200 points in mid-morning trading. It closed Friday up 60.93 points (0.54%). The Nasdaq closed down 23.98 points (0.94%).

But Chambers defended his agency's move. "It doesn't make a matter distinction," he said. "It doesn't change the truth that your debt-to-GDP percentage, below most plausible assumptions, ambition persist to ascend over the next decade."


John Chambers, the pate of sovereign ratings at S&P, told CNN that the political brinkmanship over the debt ceiling testified to be a opener issue, with "the U.S. government getting to the final day before they had cash-management problems."
"We are going to get through this," Obama said prior to the downgrade at the Washington Navy Yard, where he announced a jobs agenda for veterans. "Things will get better. And we're going to get there attach."

Fitch and Moody's, the additional two chief honor ratings agencies, maintained the AAA rating as the United States after this week's debt handle, though Moody's lowered its perspective ashore U.S. debt to "negative."
"The emergency in Europe is fast becoming on par with the fiscal crisis of 2008 Cheap Oakleys," David Levy Replica Oakley Sunglasses, portfolio director at Kenjol Capital Management, told CNN Money. "The jobs report shows that entities aren't getting many aggravate in the U.S., but the converge is apparently on Europe at this point."

Rumors of a feasible downgrade surfaced presently after Italian Prime Minister Silvio Berlusconi announced in Rome that finance ministers of the Group of Seven industrialized nations may meet "in a few days" to discuss the drooping world economy.
Chambers joined that his agency's decision is presumable to have a long-term shock. "Once you lose your AAA, it doesn't ordinarily gambol behind," he said.

The proclamation came on a daytime while financial misgiving grasped the world. Stock markets worldwide saw intense volatility amid anxieties of a widening debt crisis in Europe and a stalled economic retrieval in the United States.

Asked who was to reprove, Chambers said, "This is a problem that's been a long period in the making -- well over this administration, the prior administration."

A negative outlook fordicates the possibility that Moody's could downgrade the country's sovereign credit rating within a year or two.

Obama, who spoke Friday afternoon with France's Sarkozy and German Chancellor Angela Merkel about the crisis, noted that July marked the 17th consecutive month of private-sector job growth in the U.S., but said much more go needs to be done.

CNN's Ben Brumfield, Laura Smith-Spark, Mariano Castillo, Mike Pearson and Kendra Petersen endowed to this report.


Stock market merits fell across Asia and Europe on Friday. American markets were dramatically up and down a day after having their worst day since the 2008 financial crisis.