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Treasury officials discover a $2T error in S&P's future deficit projections, throwing into...

  • Friday, August 5, 2011, 8:24 PM ET
    Treasury officials discover a $2T error in S&P's future deficit projections, throwing into limbo the agency's plan to downgrade the U.S. credit rating. S&P notified Treasury this afternoon of its intent to downgrade, and presented its report to the WH. Following 2 hours of analysis, government officials discovered the error, and notified S&P, who agreed it had made a mistake.
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This news story has 21 comments:

  •  
    Gotta love those "financial experts" at the world's credit rating agency. If I didn't know better, I'd swear they were incompetent.
    5 Aug 2011, 08:28 PM Reply Like
  •  
    Ah, it was off by only two trillions...that's not too much in these days of global money printing....
    5 Aug 2011, 08:32 PM Reply Like
  •  
    Is that the best story they could come up with? It's obvious that someone at S&P found a horse's head in his bed.
    5 Aug 2011, 08:43 PM Reply Like
  •  
    Perhaps a "negotiated adjustment"?
    6 Aug 2011, 04:40 AM Reply Like
  •  
    Gee, $2T in "hush money"...? Wonder how much of it went under the table.......
    5 Aug 2011, 08:47 PM Reply Like
  •  
    Someone at a rating agency made a mistake? GTFOH!
    5 Aug 2011, 09:05 PM Reply Like
  •  
    Did anyone think that the US Guv would allow them to downgrade? Yes, they found an error... Sure.... <wink, wink>
    5 Aug 2011, 09:14 PM Reply Like
  •  
    S&P must have assumed Obama will be reelected (accounting for the $2 trillion) whereas white house officials likely argued with his track record he may not be nominated or if is he will be defeated.
    5 Aug 2011, 09:18 PM Reply Like
  •  
    Next S&P offices to be raided if they don't 'comply'.
    5 Aug 2011, 09:59 PM Reply Like
  •  
    They pointed it out to S&P and S&P said " well yeah but that two trillion still leaves you a hundred and 10 trillion in the hole in the 50 year forecast, so we're still downgrading your ass!"

    The budget numbers are so ridiculous its not even funny anymore. Who the heck thinks you can run a country on 41% borrowed money?
    5 Aug 2011, 10:49 PM Reply Like
  •  
    Do you even know how the debt is distributed?
    5 Aug 2011, 11:09 PM Reply Like
  •  
    After two hours of analysis, Treasury officials discovered that S&P officials had miscalculated future deficit projections by close to $2 trillion.
    It immediately notified the company of the mistakes.

    S&P officials later called administration officials to say they agreed with the administration’s critique
    ======================...
    Agree to what . $2T more or $2T less
    5 Aug 2011, 10:57 PM Reply Like
  •  
    They agreed to 2 trillion more or less. C'mon. Your actually gonna believe a rating agency that rated MBS's AAA? They couldn't rate a movie properly. Rate a XXX as a PG. Watch all the kids eyes bulge out when things start heating up. LMAO
    5 Aug 2011, 11:11 PM Reply Like
  •  
    S&P already told the US during the budget negotiations that there would be a downgrade unless at least $4 trillion in spending cuts were made.

    The rating agency is merely following-thru with what they said they would do...
    5 Aug 2011, 11:59 PM Reply Like
  •  
    The fact they didn't retract their downgrade is telling that the downgrade was inevitable even with the "calculation mistake." Expect Moody and Fitch to follow suit within the next few years.
    6 Aug 2011, 12:40 AM Reply Like
  •  
    3 more rating agencies coming right UP! I see Geico starting a rating agency with the blessing of wall street.
    6 Aug 2011, 12:47 AM Reply Like
  •  
    LOL at this point I would trust a gekko more than the analysts!
    6 Aug 2011, 09:39 AM Reply Like
  •  
    The White House found two trillion more in deficits..wow....Michelle is going to have cut back on some of her vacations....lol....2t here 2t there..whats a trillion now....Where did they find it????? How was it calculated? savings because we are not going to start a war with Mars.....????
    6 Aug 2011, 10:15 AM Reply Like
  •  
    LOL a two trillion dollar error?
    6 Aug 2011, 12:04 PM Reply Like
  •  
    Treasury says S&P made a 2T mistake and people think Treasury is right? Treasury always underestimates deficit. I think S&P made no mistake.
    Everyone suddenly attacks S&P instead of Treasury and useless and incompetnet US government. What is up with that?
    As for me, I think S&P , Treasury and the US government all luck credibility. so who cares that they squabble?
    6 Aug 2011, 05:59 PM Reply Like
  •  
    It turns out the S&P only uses 3-5 years...not the 10 years the CBO does...so those so called savings in the back years is where the 2t comes from...but we know they will never happen...look back 10 years and see what the CBO said we would have for this year....lol...they are so wrong..
    7 Aug 2011, 12:43 PM Reply Like
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