Sunday, 7 August 2011

Tea Party and the Credit Rating downgrade

I watched some of the discussions from the talking heads this morning wrt the decrease of the US credit rating and I've read some crap from the TP trying to blame the downgrade on Obama's "lack of a plan" (see McCain on "meet the press" this morning). Not sure why anyone would buy that for even a second. S&P made it pretty clear that the problems with the political process were the cause. Read the press releases and listen to what David Beers of S&P said when asked what the key thing was that drove them to announce the downgrade:  "Our observations about the political process for much of this year and the extraordinary difficulty that the parties have had to come up with this agreement and come to a consensus...."  (link) Note that it's not debt level, it's the political process that motivated the downgrade.

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