The Possible AAA Triple Downgrade--Bang the Gong

[Know Common Cents]

Here's the scoop with Standard & Poors, Moody's and Fitch as I understand it. Feel free to correct me if I've missed the boat.

Standard and Poors
We know that the US has been downgraded from AAA to AA+. That's old news by now. S&P did come out today, however, and downgraded Fannie and Freddie. They also stated that the negative watch has been continued and may be examining the credit rating of the six states that still have a AAA rating. In addition, Berkshire Hathaway has also been placed on negative watch. Warren Buffet should focus more on selling furniture from his Nebraska superstore. I've lost what little respect I had for him. Oh yes. I believe that Warren Buffet is Moody's largest shareholder.

Moody's
Has already placed the US on negative watch (just as S&P did back in April). Someone there has been attributed saying that the US is just hanging on with its AAA credit rating and barely meets the requirements. They may be the next to drop the hammer.

Fitch
Has already instituted a negative watch on the US credit. If Moody's jumps into the S&P camp within the next couple of weeks, can Fitch be far behind?

Treasury Secretary Tim Geithner verbally pounded S&P and basically insulted their integrity. That may be a move by the politicos to make them seem like the aggrieved party, but, in fact, is just an act of desperation. Rumors were flying yesterday that Timmy G would be the sacrificial token by the Obama administration. Today, he supposedly countered that by saying he'd be on board until 2012. Imagine our already-tarnished image to the world if Timmy is cut (might still happen, I believe) and an interim Secretary is appointed to serve through the time of next year's election. Absolutely the perfect time to totally abolish the Federal Reserve.

So, will this downgrade trifecta continue to gather momentum? Yes. In the meantime, Geithner and the Fed Reserve Governors will continue to tap dance in front of the world. Just like those inane TV shows, the gong will be rung and all dragged off the world stage. There are 300+ million viewers plus the world who are sick and tired of these reruns. Send them packing.

It's a sad time for us all.