UPDATE: here’s a link to the S&P statement on the WSJ site.
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Standard and Poor’s is the first of the major ratings companies to downgrade the United States of America’s financial rating: from AAA to AA+ with a negative rating outlook going forward.
It says: You can’t keep your financial house in shape. Worse, we don’t expect you to be able to in the near future either.
Nice "first" and a great legacy for President Obama – Happy Birthday, dud dude.
Determined Weakness continues.
But don’t think I lay this all at his feet; Democrats have now truly earned their "Spender" titles. That said, Republicans have been in that mix, too, and deserve blame as well.
So a couple of thoughts:
- would this have happened if the debt ceiling override had failed (showing a backbone to stopping this cancerous mindset)?
- would this have happened if large cuts HAD accompanied the Budget Control Act of 2011 (as the market has now judged that there IS no control in place)?
- Will the enormity of this event finally get through to the chuckleheads in DC that they were wrong and that the TEA Party was right in yelling "No Mas"?
- Sure, the TEA Party movement has been called all of the nastiest names in the book – yet we won the November elections.
The voters agreed with us then. Now, the Marketplace has said "yes, the TEA Party was right on this too".
So much for all the "brightest people on the planet". Once again, it was the common wisdom, if it had been followed, that has proven to be right.
