Who To Blame For The US Debt Downgrade?

Discussion in 'Politics' started by tradingjournals, Aug 6, 2011.

Who is to blame for the US Debt Downgrade?

  1. Ben Bernanke

    1 vote(s)
  2. Republicans in latest deal

    8 vote(s)
  3. Those responsible of W.'s policies

    2 vote(s)
  4. None of the above, but I love TJ's thread

    3 vote(s)
  1. wildchild


    Why dont you just look at state governments and who runs them then find the states that are in the worst fiscal condition? Amazingly, the states with the worst fiscal records are also the states run by liberal democrats.
    #11     Aug 6, 2011
  2. Lucrum


    Barrack Hussein Obama

    Which I noticed you left out of your stupid poll moron.
    #12     Aug 6, 2011
  3. Ricter


    Republican rejection of the payroll tax cut.
    #13     Aug 6, 2011
  4. BSAM


    #14     Aug 6, 2011
  5. bone

    bone ET Sponsor

    An idiotic polling thread apparently developed by an idiot.

    Where's Barney Frank and Freddie Mac / Fannie Mae ?

    Where's the seven trillion dollars in fresh debt incurred by the Obama administration SINCE 2008 ?

    Where's Alan Greenspan ?

    Where's the SEC ?

    Where's the Wall Street Investment Banking Industry ?

    Where's your fucking brain ?
    #15     Aug 6, 2011
  6. And to put things in there proper perspective:

    KABUL, Afghanistan (AP) — A military helicopter crashed in eastern Afghanistan, killing 31 U.S. special operation troops and seven Afghan commandos, the country's president said Saturday. An American official said it was apparently shot down, in the deadliest single incident for American forces in the decade-long war.

    The Taliban claimed they downed the helicopter with rocket fire while it was taking part in a raid on a house where insurgents were gathered in the province of Wardak late Friday. It said wreckage of the craft was strewn at the scene.

    I don't suppose their families give a shit about the downgrade. Damn shame we're losing good men and women in the name of this corrupt government.
    #16     Aug 6, 2011
  7. bone

    bone ET Sponsor

    From today's WSJ:

    U.S. Debt Rating in Limbo as Treasury Finds Math Mistake by S&P in Downgrade Warning.

    By Damian Paletta

    "A mathematical error discovered late Friday by Treasury Department officials has thrown into limbo — at least temporarily — plans by ratings firm Standard & Poor’s to downgrade the top-notch AAA credit rating the U.S. has held for 70 years, people familiar with the matter said.

    The wild back and forth between the Treasury Department and S&P Friday afternoon illustrated the dramatic stakes at play as the rating firm moved to downgrade U.S. debt for the first time in 70 years.

    As of early Friday evening, S&P officials still had not decided how to proceed and could move forward with a downgrade despite the issues raised by the White House, people familiar with the matter said.

    S&P officials notified the Treasury Department early Friday afternoon it was planning to downgrade the U.S. government’s debt from the AAA rating it has held for decades, a government official said, and it presented its report to the White House. S&P has previously warned such a downgrade might come if Washington didn’t move to comprehensively tackle its long-term fiscal woes.

    After two hours of analysis, Treasury officials discovered that S&P officials had miscalculated future deficit projections by close to $2 trillion. It immediately notified the company of the mistakes.

    S&P officials later called administration officials to say they agreed with the administration’s critique, though they did not say whether it would affect their rating. White House officials remained waiting Friday evening to see what the company would do.

    An S&P spokesman didn’t return repeated calls for comment."
    #17     Aug 6, 2011
  8. bone

    bone ET Sponsor

    From today's UK Telegraph:

    America’s debt downgrade is a damning indictment of President Obama’s Big Government disaster

    By Nile Gardiner: August 6th, 2011

    "The decision by credit agency Standard and Poor’s to downgrade America’s AAA credit rating for the first time in 70 years is a massive blow to the credibility of the Obama administration, and a damning indictment of its handling of the economy. No doubt the White House will pathetically try to blame the Bush Administration, Republicans in Congress, and of course its favourite target, the Tea Party, for the move by S&P. But without a shadow of a doubt, responsibility for the country’s financial mess and staggering levels of debt lie with the current US president and his administration. They have been in charge of running the economy for over 30 months, during which time the United States has witnessed an unprecedented increase in government spending and borrowing.

    As the Congressional Budget Office revealed In January, the deficits generated under the Obama administration are the largest since the end of World War Two:

    The deficits of $1.4 trillion in 2009 and $1.3 trillion in 2010 are, when measured as a share of gross domestic product (GDP), the largest since 1945—representing 10.0 percent and 8.9 percent of the nation’s output, respectively… Just two years ago, debt held by the public was less than $6 trillion, or about 40 percent of GDP; at the end of fiscal year 2010, such debt was roughly $9 trillion, or 62 percent of GDP.

    The implications of this debt downgrade are extremely serious, not least with 46 percent of US Treasuries owned by foreigners. As The Wall Street Journal notes, the United States now has a score that ranks “below Liechtenstein and on par with Belgium and New Zealand”: the move by S&P could serve as a psychological haymaker for an American economic recovery that can’t find much traction, and could do more damage to investors’ increasing lack of faith in a political system that is struggling to reach consensus on even everyday policy items. It could lead to the prompt downgrades of numerous companies and states, driving up their costs for borrowing. Policy makers are also anxious about the hidden icebergs the move could suddenly reveal. …. Lessons from other countries, such as Canada and Australia, suggest it can take years for a country to win back its AAA rating.

    Since President Obama took office in January 2009, the United States has embarked on the most ambitious failed experiment in Washington meddling in US history. Huge increases in government spending, massive federal bailouts, growing regulations on businesses, thinly veiled protectionism, and the launch of a vastly expensive and deeply unpopular health care reform plan, have all combined to instill fear and uncertainty in the markets. Free enterprise has taken a backseat to continental European-style interventionism, as an intensely ideological left wing administration has sought to dramatically increase the role of the state in shaping the US economy. The end result has been a dramatic fall in economic freedom, sluggish growth, poor consumer confidence, high unemployment, a collapsing housing market, and an overall decline in US prosperity, with more than 45 million Americans now reliant on food stamps – that’s over one seventh of the entire country.

    These are increasingly dangerous times, with American leadership being challenged across the globe. Only an historic reduction in government spending combined with pro-growth measures including lower business tax rates to stimulate job creation and attract investment can turn the US economy around. Unfortunately, as Standard and Poor’s decision has shown, this is a presidency in extreme denial over America’s towering debts, leading a nation on a precipice while blindfolded to reality. The United States badly needs another Reagan-style revolution to stave off further economic disaster, preserve American leadership on the world stage, and secure the future of a superpower. Ultimately, greater liberty and freedom, not the deathly hand of Big Government, are needed to turn this great nation around."
    #18     Aug 6, 2011
  9. Obama -- who the hell has any confidence in this idiot.

    "Transformational change"..... vote this guy out, for the love of god and country, vote this idiot out The dude is openly Anti-American, and pro leech.
    #19     Aug 6, 2011
  10. bone

    bone ET Sponsor

    BTW, don't blame tax policy as the primary contributor: look at the IRS AGI stats for 2010 tax receipts: If you took 100 % of the income from the top 1 % of taxpayers, it would take you 16 years to pay down the existing debt - nevermind the stunning projections in the forward curve.

    It is the spending started by Bush and accelerated exponentially by Obama that is the primary driver.
    #20     Aug 6, 2011