below the other two ratings agencies, moody's and s&p. it really indicates a mixture of strengths and weaknesses with the city's credit. the strengths are diversity of our economy, the fact our local economy has outperformed most of the stake, part property-tax base remains strong, and as a city and county combined, we have diversity that others did not have. generally speaking, the fiscal management within the confines of the fiscal year has remained very strong. we have demonstrated that time and again with revenue compared with the budget, the mayor and the board quickly responded for many years with solutions to keep the budget in balance. those are the strengths. the weakness which are driving to downgrade or a mixture of things. ithe city has drawn very heavily through its reserves and fund balances. we have drawn down over $100

and again there's another aspect to why do analysts give these studios a rating of aaa why does moody's s. and p. fitch give what is obviously garbage a aaa rating isn't it clear they're high on cocaine well it clear the people of moody's executives of moody's pichon and s. and p. are need to be in rehab immediately because they're taking massive quantities of cocaine to support their delusion yes max what it suggests that now that walker has not been put in trouble nobody's there's no criminal sentence there's nothing but a tiny tiny tiny tiny minute little fine like pocket change they're saying it's aaa rated now because class a drugs are once again backing up the collateral that were often assets were selling i guess this is again why the federal reserve doesn't want an audit because if you open up the vaults there at the fed whether it's the fed in new york of the one in washington you're going to find pablo escobar sniffing twenty tons of blow yet you personally figure around the federal reserve is like so close to the federal reserve. you know charlie sheen type nostromo. that's rul

customers and the taxpayer they're committing massive fraud moody's s. and p. fitch their financial terrorists but again you know aaa rating and appa time. it was backed by dexia the french economy minister is saying that dexia was two days away from bankruptcy they were bailed out rescued by the french from belgium and luxembourg governments but they had a aaa rating and were therefore able to borrow at zero percent and then lend to these municipalities across america which are now bankrupt they're being they have austerity measures forced upon them all of them are having their pensions their wealth their property seized via the currency of these credit default swaps that were created in order to defraud them of their property and wealth go to youtube and watch the show rewind the last twenty seconds and watch it about two or three times to slowly embrace what we're talking about this continued well dexie isn't the headline that i saw this week and i'm going to press a little google translate here to read the headline for you ok. i was a bankrupt and du

moody's last fall downgraded the city. with fitch, we are now on par with both the city and county of los angeles, whereas we have historically been higher, and we remain higher with s&p and moody's. but things could happen at any moment, a reserve the outlook. supervisor chu: how does the rating agency's credit score impact us overall? >> generally speaking, a better rating is a sign of lower borrowing costs. it is one piece of information an investor uses when they're deciding whether to buy san francisco bonds. the more potential buyers we have, the lower the interest rate because of competition. it is an important indicator. it is not the only indicator. i cannot tell you if this will cost this many basis points or debt service costs, but it is an important piece of information that investors use, and a lower rating generally means higher borrowing costs. supervisor chu: if we go out to purchase general obligation bonds, those will be investors looking at these reports? >> mm-hmm, and where the revenue stream is restrained, as were it largely is with these, higher borrowing costs mean that we get less for our money upfront. supervisor chu: so if we are looking b

s. and p. and fitch and moody's and it was the credit default swap the c.d.'s that was that the indicator to the global markets that the debt of these countries was being attacked well zero hedge tweeted something very interesting about the gold price soaring gold is the new us c.d.'s it has been for ten years and gold started to make its move in two thousand when the internet bubble burst and the fed came in with lower interest rates to see the housing bubble this is when the gold and silver vigilantes understood that ben bernanke and greenspan were not operating in the interest of the greater economic good but only in the very narrow interest of the top one tenth of one percent in the united states who by the way they just got another huge tax cut they just got another huge wealth increase and the divide between the top one tenth of one percent in the bottom ninety nine percent has got an even wider well if gold is the new u.s. c.d.s. insurance against the u.s.

and both moody's and s&p downgraded nasdaq's credit outlook from stable to negative today. analyst rafay khalid says nasdaq had to take the gamble. >> i believe that they threw their hat into the ring not to be left behind. but it's almost a bid of desperation, what they're trying to do. >> reporter: a deal between the nyse and the nasdaq would face significant obstacles, not the least of which is antitrust scrutiny. the two exchanges are direct competitors. so a merger would create a monopoly in the market for stock listings in the u.s. but the nyse's deal with deutsche borse also has anti- trust concerns, because the new company would have a lock on european exchange traded derivatives. experts say the key to approval of either deal will be how regulators define markets: >> in the u.s., if the nasdaq can acquire the nyse, then regulator are going to be asking is the cash equities business a global business or a u.s. based business. same thing in europe-- is the derivatives a global business or a pan-european business. >> reporter: it also boils down to which option regula

some have said that s&p could be followed by moody's. the international monetary fund, which is the institution that normally jumps in to try to help troubled economies, they reported just a couple of months ago that since the u.s. deficit is likely to hit a 11% of our total gross national product, that this was a real warning signal. s&p is a lagging indicator. all of the serious economic observers are looking at this and saying we're in real trouble. s&p is late to the game. host: let's go to our first phone call for john fund. ruth is a democrat in memph, >> caller: i am so profoundly disappointed in c-span this morning to introduce this man as a journalist. >> host: i said he's a columnist. >> caller: well, okay, a -- no,: the headline said journalist, and it was washington -- he's being called a journalist, he'se been a spokesperson for theican republican party for years.

some have said that s&p could be followed by moody's.ernational monetary fund, which is the institution that normally jumps in to try to help troubled economies, they reported just a couple of months ago that since the u.s. deficit is likely to hit a 11% of our total gross national product, that this was a real warning signal. s&p is a lagging indicator. all of the serious economic observers are looking at this and saying we're in real trouble. s&p is late to the game. host: let's go to our first phone call for john fund. ruth is a democrat in memphis, tenn.. go ahead. caller: i'm so profoundly disappointed in c-span for introducing this man as a journalist. host: columnist. caller: the headline said journalist. he has been called a journalist. he's been a spokesperson for the republican party's for years. i'm seeing strategy -- this whole thing is exactly what the star of the beast -- starve the beast strategy wanted to accomplish. it is just crazy. everybody remembers -- deficits do not matter. host: let's get a response to that, john

s. and p. downgrading the moody's didn't do it didn't do it but still the stock markets really drop very very quickly to this day that's kind of a short term reaction yes i mean we will have to see what actually happens but many people that i have you know that it covering this today and analysts and writers believe that the timing is very collectable that it in essence this negative outlook is to influence the debate in washington to get leaders to enact some kind of program for the deficit which is a highly partisan issue that we've seen divide the parties and we haven't seen a lot of movement i mean even with the near government shutdown we saw such minimal cuts and minimal real action to tackle any of those kind of cutting issues so many see this as a political what if they actually went for it and really did downgrade our credit rating or something you can say that really this is kind of minimal grading the outlook i says in an official rate but would that be catastrophic many would say without the kind of strong that we did people that i interview economists financial analysts they say yeah tha

percent and you credit downgrade of portugal by moody's rating agency was further dampening sentiment all eyes now on thursdays anticipated rate hike from b. . and s. like correction in russia after two days of growth we are tears in my six were down slightly the close stocks were falling oil price movements throughout choose paste special let's take a look at some of the individual movers oil stocks managed some kind of recover. by the end of the session they were losing by as much as one hundred percent that's four was never managed to actually get point three the n d t v one of the biggest losers correcting one point six percent the news called gaining one point four on a record high level of gold prices is mike same question cough that would also capital. or with the going through some profit taking in the morning. i think you know russian stocks and done very well this courtroom and sitting on hill superfoods names and the gossiper more names and tuna sensually any good war economists that is true sometimes i use as a pretext to the proof it's russia's top telecoms group ross telegram has finalized the process of taking over eight regional co

s. and p. downgrade for the united states look banks are suffering a double whammy as ratings agency moody's downgrades irish banks to junk status and moody's says it remains concerned about dublin's ability to push through a restructuring of its own back here in russia the markets took a beating reality is my sending more for around four percent in monday's session second some individual shares energy companies were down in the freezing while prices the u.s. data was three point seven percent the tb and burbank financial stocks were the main news as they were down three point two and five point two percent respectively peter weston adds on capital explains why russia is not as reacted so negatively. we have a negative event russia tends to react here more than other markets even sometimes when it's not justified. nevertheless this is something which is going to resonate in the market probably for a couple of days until we see what the u.s. political response is going to be in terms of the impact given that russia russia's exposure to trade with the u.s. is really quick where we are exposed to these th

there will be rating agencies, s&p, moody's, these determine how much you're allowed to bo borrow. they will suggest you shouldn't invest in u.s. debt if you're chinese. the chinese buy it, middle east, that's who buys it. they will be saying, why should we do this. why don't we buy the debt of the germans, the french. >> we lose our ability to borrow money. >> that's what's going to happen. >> we lose our ability to pay our bills. what is the affect on the overall economy at a rather fragile time for recovery? >> it would become much more expensive to borrow. anything that's gone through the financial crisis, mortgage rates go up, credit card rates go up. that's what happens to us as a country. we are a very wealthy country. if you look at our assets we could pay down the debt tomorrow. we choose to borrow because we borrow at incredibly low interest rates. our country because we are the safest country in the world has the ability to borrow and pay down later. others don't have that -- >> it can go away. >> that's a risk we have now. >> are we most likely to see a major compromise

s. and p. has not ever given any outlook for the u.s. in the time that is in rating the united states moody's did once the other major credit rating rating agency back in one thousand nine hundred six so we have heard some warnings even in january from the credit ratings agencies about the same issue of the u.s. debt and what this is doing to its you know what the what this means about the fundamentals of the u.s. economy they they put it at risk for a credit rating but as far as actually lowering their credit rating. and that's what would be the big huge weigh on me and no one's talking about that but i mean this is certainly significant and we saw stocks definitely take a hit today on the news of the debt and the deficit seems to be central to the conversation here in washington over the last few weeks you know as they've been wrangling over the budget democrats and republicans all these proposals for how to save money how to cut the debt and kind of get back on track what's the outlook in terms of these proposals the democrats you know the ryan budget obama's proposals will either of these

some have said that s&p could be followed by moody's. the international monetary fund, which is the institution that normally jumps in to try to help troubled economies, they reported just a couple of months ago that since the u.s. deficit is likely to hit a 11% of our total gross national product, that this was a real warning signal. s&p is a lagging indicator. all of the serious economic observers are looking at this and saying we're in real trouble. s&p is late to the game. host: let's go to our first phone call for john fund. ruth is a democrat in memphis, tenn.. go ahead. caller: i'm so profoundly disappointed in c-span for introducing this man as a journalist. host: columnist. caller: the headline said journalist. he has been called a journalist. he's been a spokesperson for the republican party's for years. i'm seeing strategy -- this whole thing is exactly what the star of the beast -- starve the beast strategy wanted to accomplish. it is just crazy. everybody remembers -- deficits do not matter. host: let's get a response to tha

because of the way these markets -- and in some ways of dictating market perception in jan both s&p and moody'srejected dodd-frank and nevertheless these provisions that they're going to continue to give enhanced ratings on the large banks on the assumption that the government will bail them out. that was something historic. before the crisis there was never an explicit added ratings after the government bailout factor. after dodd-frank this year they indicated that's exactly what they will do. spu's more muted language. moody's was more blunt and basically said that they did not believe the dodd-frank provisions and the way it's being executed is going to solve that problem. so for wall street, yes, t.a.r.p. was a success. it saved them and it's put them in a position, frankly, for the big banks to make more profits than ever. what about main street? well, it's more of a mixed bag. i don't want to underestimate in any means of how important preventing a financial collapse was to main street. we were on the edge of the abyss. and while it's difficult to say, okay, the $700 billion of t.a.r.p. i

moody's rating agency is further dampening sentiment in europe all eyes now on thursday's anticipated rate hike from the european central bank tellers like correction in russia after two days of growth r t s m i six with the answer like the other close sort of falling oil price movement throughout tuesday's session secular individual shares while stocks managed some kind of recovery by the end of the session last year putting up point three percent while it was actually losing one after sending a session the to be one of the biggest losers correcting one point six percent pollies gold was up one point four percent on record high prices for the precious metal here's my seamstress and caught up to us at capital. who are always so on the going through some profit taking in the morning. when you know russian stocks have done very well this courtroom and we're sitting on the hill superfoods names and against are more names and tuna centrally any good will become an expertise thing sometimes i use as a pretext to be proof of. russia's top telecoms group ross telecom has by my eyes the process of taking over eight regional companies under its brand now the company which is worth an estimated six

some have said that s&p could be followed by moody's. the international monetary fund, which is the institution that normally jumps in to try to help troubled economies, they reported just a couple of months ago that since the u.s. deficit is likely to hit a 11% of our total gross national product, that this was a real warning signal. s&p is a lagging indicator. all of the serious economic observers are looking at this and saying we're in real trouble. s&p is late to the game. host: let's go to our first phone call for john fund. ruth is a democrat in memphis, tenn.. go ahead. caller: i'm so profoundly disappointed in c-span for introducing this man as a journalist. host: columnist. caller: the headline said journalist. he has been called a journalist. he's been a spokesperson for the republican party's for years. i'm seeing strategy -- this whole thing is exactly what the star of the beast -- starve the beast strategy wanted to accomplish. it is just crazy. everybody remembers -- deficits do not matter. host: let's get a response to tha