S&P downgrades U.S. credit rating for first time - Washington Post
So much for the agreement between Obama and Congress. Looks like S&P saw through the lameness of not reducing the deficit and debt (i.e., budget cuts). Too bad S&P can downgrade our leftwing elected officials to unelected status. These guys are fighting off budget cuts tooth and nail. What we need is a $10T cut over 10 years.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.