U.S. credit downgrade is ‘a very, very puzzling decision’: Paul Krugman
ฝัง
- เผยแพร่เมื่อ 7 ก.ย. 2024
- #credit #uscredit #usdebt #yahoofinance
Fitch's downgrade to U.S. credit rating from AAA to AA+ has economists confused over the timing of the decision. Fitch cited the "erosion of governance" in U.S. political parties and the handling of the federal debt ceiling in its revision. In 2022, Fitch Ratings maintained the United States' AAA credit. "None of this is worse now than it was a year ago when Fitch gave the U.S. a clean bill of health," New York Times Opinion Columnist and Nobel Laureate Paul Krugman told Yahoo Finance Live on ongoing political deadlock that has not been exclusive to the Biden administration. Looking at the July jobs report and the "immaculate disinflation" prints, Krugman believes the economy is showing "no hint of a recession." He states that a new round of fiscal stimulus may not be entirely necessary to boost the economy, but that the government may have "to reconcile what the public wants" in social benefit programs. Krugman also comments on President Biden's popularity tied to his economic policies and the path forward for inflation.
Subscribe to Yahoo Finance: yhoo.it/2fGu5Bb
About Yahoo Finance:
At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.
Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more.
To learn more about Yahoo Finance Plus please visit: yhoo.it/33jXYBp
Connect with Yahoo Finance:
Get the latest news: yhoo.it/2fGu5Bb
Find Yahoo Finance on Facebook: bit.ly/2A9u5Zq
Follow Yahoo Finance on Twitter: bit.ly/2LMgloP
Follow Yahoo Finance on Instagram: bit.ly/2LOpNYz
Follow Yahoo Finance Premium on Twitter: bit.ly/3hhcnmV
![ตีสิบเดย์ [FULL] | นางเอกหมอลำเงินล้าน "อุ๋งอิ๋ง เพชรบ้านแพง" & ไฮโซสาวสุดฮอต "ลิลลี่ เหงียน"](http://i.ytimg.com/vi/jPxQS_EgrJ4/mqdefault.jpg)
My personal economy is in bad shape because interest rates has caused my HELOC payment to close to double from $490 to $870. My home insurance went from $1700 to $3500. And now I’ve heard car insurance rates are on the rise. It’s not sustainable for those of us living check to check.
Commercial real estate, regional banks, $80 🛢, credit card 💳 interest rates ALL TIME HIGH. The $hit is gonna hit the second half the year. Let's not forget the migrant crisis and Ukraine war which is the icing on the cake of the upcoming financial calamity...
Very puzzling indeed. If you downgrade a person who brings in 3 dollars and spends 4 what you do with his credit score. And if they were wrong an year back then why should not correct an incorrect decision …
Food, health care, and housing. All time high! Rich people don't care about the middle class. Sad and ashame. 😎
They have destroyed the middle class foundation. It's an empire in decline.
The US spends trillions on the military every year and this clown Krugman ''I don't know where we could cut spending''.
Paul needs a reality check especially when the cost of goods are skyrocketing!
Why didnt we spend 52 billion to build an American Company for taxes 👎 Already, Taiwan Semiconductor Manufacturing Co. has pushed back the proposed start of production at its Arizona plant, citing a lack of construction workers with the expertise to install highly technical equipment. The firm plans to send staff from its Taiwanese facilities to train local workers, executives said on an earnings call last month.
wonder how many people who went to collage and got a degree found work in the industry the degree fits otherwise known as "Under-employeed".
Excellent interview and questions answered. Good job YF.
interest rates payments have expanded Macroeconomic outlook. But it also creates more cost adding to all goods and services creating more inflation on prices.
14th amendment
Section 4
The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void. the "Debt Ceiling" itself is unconstitutional which mean the only spending that should happen it should focus on the health and well being of its "Non" corp entities. And taxes "DO Not" fund fed gov spending (At All Non)
Most people are negative. Despite all the positive things going in the US economy, they still focus on what missing in their lives.
Like more money in their bank accounts, relative to the cost of living?
Raising bond yields ("interest rates") reduces the price of government bonds.
Thus, the government, to get its required cash, must issue more bonds to be monetized (at a lower price) by the Fed, thus dramatically increasing government debt.
The current government debt of over $33T is unsustainable and will increase exponentially just to issue more bonds to pay the spiraling interest.
A default of government debt is coming and there is no way to prevent it.
Why not now?
If we continue to raise the debt ceiling wouldn't this be the consequence?
Why Puzzling ?
THE ANSWER IS SIMPLE: They need credibility, in order, when they downgrade Russia, China, etc. to stay credible....... Other than that, they might follow the logic raised cost of borrowing = worst credit 🤣
The answer is to stop everything with Korea.. Don't give my assets to thieves anymore.