S&P threatens another downgrade

By Ken Feltman

On Friday, Standard and Poor’s downgraded the U.S. government’s triple-A credit rating. On Saturday, S&P threatened another downgrade.

In fact, considering the way S&P gives advance notice before downgrading, if the U.S. fails to make the cuts outlined in the debt ceiling agreement, another downgrade is likely.

Less than 24 hours after slashing the U.S. rating, S&P Managing Director John Chambers told reporters on a conference call that the moribund economy and the inability of the political system to deal with the debt crisis could lead to another slash in America’s rating.
“Compared to some other highly rated governments, the U.S. government does not have the proactive ability to put public finances on a firm footing,” Chambers said.

His colleague David Beers said the partisan bickering increases the risk that Washington will not achieve effective policy remedies. “For that reason, there’s a lot of uncertainty about the future debt burden,” Beers said.

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About Radnor Reports

Ken Feltman is past-president of the International Association of Political Consultants and the American League of Lobbyists. He is retired chairman of Radnor Inc., an international political consulting and government relations firm in Washington, D.C. Feltman founded the U.S. and European Conflict Indexes in 1988. The indexes have predicted the winner of every U.S. presidential election beginning in 1988, plus the outcome of several European elections. In May of 2010, the Conflict Index was used by university students in Egypt. The Index predicted the fall of the Mubarak government within the next year.
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10 Responses to S&P threatens another downgrade

  1. Skeptic in NYC says:

    I am going to need to see confirmation from S&P before I believe this. That’s not how they work. They don’t downgrade and then predict the next one.

  2. Bob W. says:

    Yes they do. Check a variety of sources that said the same thing. S&P officials said it on the television shows this morning.

  3. Y.B.I. says:

    Skeptic, you blew it. Why didn’t you just google? Radnor Rept got it right.

  4. Bay Area Bill says:

    Stop it! Stop arguing about the next downgrade and do something to prevent it!!!!!

    • Hector says:

      Although I agree with many of your points, Karen, I do think there is a midlde ground between grading the process and simply not grading at all. In my experience especially at the freshman level you will not get any meaningful discussions going if it is simply voluntary. If it doesn’t count, why should they bother doing it? (We know better, of course, but I think it’s unrealistic to expect a college freshman to do things that are good for them unless it counts toward the class grade somehow). If they have no skin in the game, they are unlikely to ever fully engage in the discussions (again, at least at the introductory level you might have much more success with juniors and seniors). The midlde ground I have found, and which is working well for me, is to make their discussion-type assignments worth credit, but at low stakes. So, for example, with my English 175 journals (which is basically a private discussion between the student and myself), the students earn 5 points for doing the assignment. I might respond with some feedback, but I do not grade their writing, their thought-process, etc. If they meet the minimum word count and are writing on topic, they get full credit. Similar with the blogs, which are meant to be conversations among the students themselves They get 5 points for writing their blog, and 1 point for each comment they make on the blogs of others students (they are required to make at least 2 comments per week). I put myself in the background for this assignment, allowing the students to interact with each other my involvement, and the results have been very good. They know they earn points for doing the work, but they also know I’m not going to jump in and criticize them. These are low-stakes assignments that keep students on track and help them think about what they’re reading, without putting an undue burden on them. Furthermore, it makes grading fairly simple for me, because I am mostly checking to make certain students are on track and on task. I browse their submissions, keep an eye out for plagiarism and disrespect, and give them full credit if they’ve done what was asked. I am also very careful to not make critical comments when I am interacting with the students online. I think of my role in that arena as more as a guide than an authority, and I never tell the students what they should think or how they should interpret things. If I feel a student is missing the point, I will guide them where they need to be by giving them some questions, such as Why do you think the oiler was the only character that Crane gave a name to?’ or Why do you think the American and Jig never mention the specific type of operation’ they’re discussing? Perhaps my viewpoint is skewed by the fact that I wasn’t always the most dedicated student when I was an undergraduate. Given a choice between doing an assignment that was not worth credit, versus studying for my five or six other classes or doing something fun with my buddies, the no-credit assignment would have always been my last priority.

  5. Daily says:

    Bookmarked. Thanks!

  6. Palm Beach Dog Lover says:

    Thanks for the insight!

  7. Flipper says:

    interesting that I have started to see more articles on this but you were the first

  8. Melvin Jervey says:

    I really like your wordpress web template, wherever did you obtain it?

  9. Cornell says:

    Thumbs up

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