Microsoft has higher credit rating than U.S. government
Summary: Microsoft now has a higher credit rating than the U.S. government, since its downgrading late last week.
For the first time in its history, the United States last week lost its AAA credit rating from Standard and Poor, an internationally recognised credit rating organisation.
The U.S. government's ability to handle the recent threat to default is one of many reasons why the credit agency lowered its rating to AA+, putting the United States below the United Kingdom, Germany, France and sixteen other countries.
Yet, Microsoft is one of four U.S. based companies which still holds onto its AAA rating, with the exception of some financial and government institutions, despite the government's lack of ability in holding onto its own.
In 2008, Standard and Poor gave Microsoft the highest status for credit rating, beating other high profile companies like Apple, Google and Amazon.
On the other hand, last week it was revealed that Apple -- the company behind the Mac and the world famous iPod line -- had more cash and marketable securities in reserve than the U.S. government, as the debt crisis escalated.
Apple was said to have had $76.4 billion, while at the time, the U.S. government had just shy of that, with an operating cash balance of $73.7 billion.
Apple's reserves would have been "enough to buy Goldman Sachs or Facebook", hypothesised The Atlantic.
For now, though Standard and Poor has downgraded the U.S.' credit rating, two other credit rating agencies still classify the economy in AAA status -- at least, for now.
The U.S. House of Representatives and Senate eventually passed the new laws, allowing the government to raise the debt ceiling to pay its bills on time.
Other companies still with AAA rating include Exxon Mobile, Johnson & Johnson, and Automatic Data Processing.
Related content:
- Apple has more cash than U.S. government
- CBS News: Who's to blame for S&P's U.S. credit rating downgrade?
- Video: S&P head details U.S. credit rating downgrade
- Putting U.S. debt downgrade in perspective
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Talkback
"Whoever issueing bond in US$ should be downgraded"
http://www.youtube.com/watch?v=SgNLTb58K_Y&feature=player_embedded#at=479
RE: Microsoft has higher credit rating than U.S. government
Real economists laugh at Mr. Schiff and his constant warnings of economic apocalypse; we're still waiting for his hyperinflation.
http://www.youtube.com/watch?v=fkQsGnrVvRQ&list=FL65HEiElWMe8&index=2
RE: Microsoft has higher credit rating than U.S. government
One hair of Peter Schiff has more Econ IQ than ...
RE: Microsoft has higher credit rating than U.S. government
Bob Pollen doesn't get federal finance. He fails to see that about 29% of US govt debt outstanding matures annually and must get rolled over -- that's $4.2 TRILLION each year, even though current interest due on the debt runs about 22.3% of revenues.
Do the math. Current rev is about $1.7 T/yr. Govt cannot re-fi $4.2T of maturing debt from current rev, forcing debt roller over. Without rollover, it's game over. Cutting spending to $0 still doesn't cover roll over.
Any rise in market rates for US Treasury paper makes the expense of roll over higher.
Bob Pollen is a fringe economist at a two-bit farmer's college, U Mass.
RE: Microsoft has higher credit rating than U.S. government
Of course.
RE: Microsoft has higher credit rating than U.S. government
The United States of America: Of the corporations, by the corporations, for the corporations. The destruction of the middle-class is well under way. The elitist upper echelon has resented for decades having to compete with the lower classes for jobs that were once their private domain.
What amazes me even more is how people vote against their own best interests.
Wrong enemy friend.
RE: Microsoft has higher credit rating than U.S. government
RE: Microsoft has higher credit rating than U.S. government
If Microsoft has to move to another country to benefit themselves and prevent going down with the USA then they will do that (might not be in the next few years but it will happen eventually).
I disagree.
Microsoft would not risk the lucrative US market on saving a few dollars on taxes.
Very troubling
==============
P.S.
See why Andy Upgrove feels strongly about tariffs:
h-t-t-p://www.businessweek.com/magazine/content/10_28/b4186048358596.htm
$3 Billion in hedge fund manager bonuses don't hurt either.
$3 billion dollars = 33.04 tons of $100 dollar bills..
Interesting how someone could know to short the stock market on the day it lost over $800. A coworker came to me in the lunch room and was bragging how he shorted the market and made a killing. <b>It would be interesting to know who paid the bonuses and how much they made for destroying the economy</b>. Causing the financial collapse and shorting the market is no different than what other traitors did throughout history.
The academic community has it pretty well figured out.
http://www.youtube.com/watch?v=qOP2V_np2c0
Thanks Joe. You are always thoughtful.
nt
So you blame this on Microsoft
as usual?
RE: Microsoft has higher credit rating than U.S. government
You're spewing common sense, something alien to our elected officials in Washington. Politicians are interested in one thing and one thing only, getting re-elected. They stopped caring for their constituents a long time ago. Their addicted to corporate money which funds their elections. And to receive that funding, they have appease their corporate puppet masters while pretending to care for the people they represent.
RE: Microsoft has higher credit rating than U.S. government
Whether what you advocate is a good idea or not I can't say because I"m not as into politics and policy as you clearly are but I can say with near absolute certainty that what you advocate will not come to pass. Change is gradual (and usually for the worse). And when radical change happens it's only because one's back is against the wall, and that kind of pressure and lack of forethought is not at all conducive to an intelligent plan/reaction to the crisis. A panicked response is never an intelligent/effective one. The USA is doomed (although it will probably live on in name, though it will be near unrecognizable to the USA of the past 60-70 years).
Common sense has not been heard in Washington
In case you hadn't noticed, our backs *are* up against the wall. Where have you been?
And, we have neglected our own back yard going on 30 years.
This is your morning wake-up call...
RE: Microsoft has higher credit rating than U.S. government