8/2/2011 Bill Gross on Standard Poors Potential Downgrade of U.S. sovereign credit rating

Original Source Video: http://video.cnbc.com/gallery/?video=3000036633

The sovereign credit rating downgrade of the United States from AAA to AA+ by Standard and Poors was expected since the ratings agency was looking for 4 trillion worth of budget cuts and only 2.4 trillion worth of (dubious see http://theeconomiccollapseblog.com/archives/the-debt-ceiling-deal-from-hell) budget "cuts" were presented over a 10 year period. Bill Gross, co-founder and co-CIO of PIMCO tells CNBC back on August 2, 2011 that theoretically the downgrade should occur, but that he did not know if Standard and Poors would have the courage to follow through with the ratings downgrade.

Bill Gross: "It is a close call on whether or not they [Stand and Poors] have the spine to follow through with their 4 trillion dollar number"

Apparently Standard and Poors did follow through with the downgrade even though they made a $2 trillion math error (see http://www.cnbc.com/id/44043459) in their calculations, which was pointed out to them by the U.S. Treasury, whom S&P notified first before the downgrade press release.

Full article here: http://bearishtrader.blogspot.com/2011/08/us-downgraded-to-aa-from-aaa-by.html

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Category:

News & Politics

Tags:

• CNBC
• Bill Gross
• PIMCO
• Standard and Poors
• S&P
• credit rating
• downgrade
• AAA
• AA+
• Melissa Francis
• Bill Griffith

[roxberryz]

The man got a license to kill