Obama: Sees US credit downgraded, goes to dinner…

Tomorrow, golfs.

They always call Obama a historic President, today he breaks ground again;

Standard & Poor’s announced Friday night that it has downgraded the United States credit rating for the first time, dealing a huge symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.

Lowering the nation’s rating one-notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less stable, less effective and less predictable.” It said the bi-partisan agreement reached this week to find $2.1 trillion in budget savings “fell short” of what was necessary to tame the nation’s debt over time and predicted that leaders would have no luck achieving more savings later on.

Two World Wars, a Great Depression, the Cold War, all the Presidents in between; none managed the US economy into a credit downgrade until Obama.

Just an ordinary, average guy

About Erick Brockway

Living in Camarillo, CA, about 45 miles North of LA. I have a son, and two daughters. Working two jobs (welcome to California life), plus a (now retired) reservist in the US Navy Seabees so life is busy!
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7 Responses to Obama: Sees US credit downgraded, goes to dinner…

  1. Oscar Rivera says:

    From the S&P Report:

    “We lowered our long-term rating on the U.S. because we believe that the
    prolonged controversy over raising the statutory debt ceiling and the related
    fiscal policy debate indicate that further near-term progress containing the
    growth in public spending, especially on entitlements, or on reaching an
    agreement on raising revenues is less likely than we previously assumed and
    will remain a contentious and fitful process “

    Who do you think they were referring to?

    • Everyone in the process, both houses of Congress for failing to act and the President for failing to lead. It happened on Obama’s watch. Substitute the name “Bush” for “Obama” and I ask you, what would tomorrow’s headlines read?

      The S&P said that first steps were taken, but too many things are left open-ended.

      We view the act’s measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow.

  2. Oscar Rivera says:

    It is undeniable that Obama’s failure to lead plays a major role. But to cast a disparaging light in your OP without even mentioning the pivotal role the GOP and the Tea Part played in this debacle is a bit disingenuous, don’t you think?

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