Here is the news heard round the world Friday evening (after the markets closed). Little Timmie (Geithner) fought hard we are told and the leftwing TV commentators where busy blaming it all on the S&P as I passed by the TV last evening.
(I just didn’t happen to hear accusations against the Tea Party. I expect they will be coming, but it will be a stretch since only the Tea Party wanted what S & P wanted).
This from the Washington Post :
Standard & Poor’s announced Friday night that it has downgraded the U.S. credit rating for the first time, dealing a 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 to 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 bipartisan agreement reached this week to find at least $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 not be likely to achieve more savings in the future.
“It’s always possible the rating will come back, but we don’t think it’s coming back anytime soon,” said David Beers, head of S&P’s government debt rating unit.
The decision came after a day of furious back-and-forth debate between the Obama administration and S&P. Treasury Department officials fought back hard, arguing that the firm’s political analysis was flawed and that it had made a numerical error in a draft of its downgrade report that overstated the deficit over 10 years by $2 trillion. Officials had reviewed the draft earlier in the day.
“A judgment flawed by a $2 trillion error speaks for itself,” a Treasury spokesman said Friday night.
The downgrade to AA+ will push the global financial markets into uncharted territory after a volatile week fueled by concerns over a worsening debt crisis in Europe and a faltering economy in the United States.
The cuts were not enough, now where did we hear that before? Oh yes, the Tea Party!
This from Erik Erikson at RedState:
There was only ever one plan that did what S&P said was required — $4 trillion in cuts with bipartisan support. That’d be Cut, Cap, and Balance — a plan that cut $4 trillion and got bipartisan support in the House of Representatives.
As Democrats tonight, and some Republicans, lash out and blame the Tea Party for causing the United States to lose its credit rating, it is worth pointing out that only the Tea Party offered up a plan to avoid what happened.
This is precisely why the GOP should have held the line.
Mark August 5, 2011 as a turning point in US history.
P.S. Look who still has a AAA rating (from the Post):
The company said the United States’s financial position was diverging from that of other AAA countries, including Canada, France, Germany and Britain.