The credit agency said that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country's debt situation.While we are no longer "Prime", we are still "High Grade". The list of ratings can be found here.
And why would S&P be in trouble? "The Chicago Way". Quoting from the AP article:
The government fought the downgrade. Administration sources familiar with the discussions contended that the S&P analysis was fundamentally flawed. They spoke on condition of anonymity because they weren't authorized to discuss the matter publicly. S&P had sent the administration a draft document in the early afternoon Friday and the administration, after examining the numbers, challenged the analysis.And, one might ask, if they were not authorized to speak publicly, why were they speaking at all. Should not the People of these United States get the the unvarnished truth from official spokespeople rather than behind-the-scenes spin?
In a statement, Treasury said, "A judgment flawed by a $2 trillion error speaks for itself."
Hat tip to the Instapundit.
Regards — Cliff
The problem is that "the truth" is in precious short supply when it comes to the US Federal government. And it is almost intuitive that given the unbounded narcissism of Obama, the push back on S&P was and will continue to be of nuclear proportions. Be prepared for Sunday talk shows to be infused of massively discrediting statements to be made about S&P by the dogs and ponies trotted out to the various forums. Monday, the game will escalate.
ReplyDeleteObama has a dream and it doesn't include being the first President in the history of the US to preside over a downgrade. Of course, he is the one who has spent astronomic sums to our money to fundamentally transform America....of course...he's never really said what the transformation is from or to...and why after over 2 centuries of relative success as a Republic....it needs to now be fundamentally transformed.
And, while Obama is going to take a well deserved hit on this, the real culprits are the American people, at least, those who demand that government take care of their every need and make the world a perfect place for them to "live." And currently, that group of Americans far exceeds in numbers the other group, the domestic terrorists who want a minimal Federal government, a balanced budget, more reliance on states to govern, and an insistence that the individual is ultimately responsible for him or herself.
S&P isn't in trouble. We are.
And to those who will dismiss the downgrade as minimal damage and "not so bad"....it IS bad, if not technically....philosophically. The strongest, most successful Republic on earth....and we're downgraded as an investment risk.
No surprise though.....we are a society that demands instant gratification and the credit card is that means to that end.....and if we can't pay the balance due.....oh well.
Neal, you had me right up until the partisan political whack on Barry O. Why the need? My favorite dig on the Big O as in zero is that he's the guy who has fired more cruise missiles than all the other Nobel Peace Prize winners combined, but I like to make sure I never go there without reminding everyone that he's only doing exactly what Dubya did before him, and it will never get better while we just keep swinging the criminal pendulum back and forth between the parties.
ReplyDeleteYou want to talk "downgrade?" Then let's talk "state's rights."
ReplyDeleteRelinquish regulatory control over many issues and what you will see is a downgrade on labor, consumer and environmental protections. If you think DC is messed up, think about the individual state houses being left to the devices of lobbyists.
It's a shame when hackneyed conservative parrot points meet the blunt edge of "unintended consequences." Except those effects are intended. Not by you, Neal. I don't think you wish to screw your fellow Americans over, state by state. But the slimy folks that craft the talking points you regurgitate? Yes, I am convinced they will sell us all out.
Hey Kad, although it sure appears to be a partisan whack at O, I meant it more in terms of explaining his resistance to the threat and actuality of a downgrade. ANY President would react the same and once it becomes a fact....ANY Administration will go immediately to work to demonize the downgraders and "the folks who got us here." Obama's narcissism just makes his reaction more acute.
ReplyDeleteDid he do this single handedly......"NO".....he has had LOTS of help.....before and during his term. I'm not all that sure that Timmy Geithner has been a good advisor.....but that is another thread.
Agree with you too Jack. Anything that smacks of extreme or extraordinary action gives me the willies. There HAS to be a good mix...Federal, state, and local....and that all can't be simply left to operate on its own devices. It takes an informed and INTERESTED electorate that will INSIST that the governing bodies do the bidding of the people.
Its always easiest to simply point the finger and attach the tail....but when I hear folks assailing government, I generally ask who they voted for in the last election....local, state, AND Federal.....usually there is a lot of throat clearing...or the subject gets shifted to who won the last Patriots/Red Sox/Bruins/Celtics game.
I genuinely believe that We The People is not just a slick euphemism....it is a mandate. And there is plenty of room for discussion on our matters. History seems to have adequately proven that neither party...or ANY party....has a lock on THE SOLUTION. NOTHING is EVER ALL bad or ALL good.
I write to MY representatives regularly...even the one who is in "the other party".......and I simply give them my view on whatever is going on this week. They can throw it in the trash and do what they want, or they can determine if mine is a view with merit or company. Either way....I have spoken to them....and I expect them to at least listen.....THEN they can do what they feel is right.....and be judged later by their actions. I have voted Democratic before when I was a card carrying Rep. Now I am simply independent...and play the BEST horse..at least...the one I like.
We are in this mess together...and we HAVE to get out of it together. When you are in a lifeboat on a stormy ocean, having a fist fight with another oarsman is not productive toward being saved.