Who is responsible for the downgrading of the American credit status?

Objective Voice said:

Ugh...Go back!!

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I can't.
They beat me up and threw me out for being too tough.

objective voice said:

of course the democrats rejected both large spending plans...because republicans refused to give on tax revenues of any kind. Pundits continue to say we have a spending problem. While that's true, we also have a revenue problem only very few people dare to acknowledge that.

Republicans don't want to raise taxes or close tax loopholes, so the only thing the treasury really has left is cutting the interest rate on bonds to near zero. Bond rates have been the only buffer between lost income tax revenue and the debt that's kept us afloat all this time. But now that the "full faith and credit of the u.s." has been downgraded, the one thing the president tried to avoid will now happen.

Bond interest rates will increase; morgtage, credit card and car loan rates will also increase. Banks and private investors will find it harder to raise revenue. Small business owners will find it even more difficult to get loans. And for what? Because one side of the political divide didn't want to compromise under any circumstances even when they were getting over and above what they wanted.

I'm not alone in blaming republicans for this mess our nation is in. There are plenty of others who see through the smoke screen.

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bravo!!!!!!!!!!!!!

SPC said:

Since no one seems to have asked this yet....

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Yep - iagree wiht others. Both.

Both sides - not an individual president because the isssues that created some of this mess rest in Congressional action.

I want to change my answer. As much as my answer was true, I think the biggest fault lies with those idiots who have to point fingers at others instead of owning up to the responsibility for their own and their own sides actions.

Dittohead not! said:

I knew it wasn't serious long before that. I really think the leaders of S & P did too.

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firstly, I think it should have been obvious to anyone with common sense in 2005 when Bush's own party turned on him for trying to fix Social Security that our political system As Is was completely unequipped to deal with this.

that being said; I am hesitant to give S&P that much credit.

No one in Washington is willing to support the kinds of cuts and tax increases that are necessary to bring the budget into balance. Who can blame them? We'd at least vote them out of office, if not run them out of town on a rail if they were to tell the truth and take decisive action. Too many people still expect a free lunch.

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bingo.

Objective Voice said:

Of course the Democrats rejected both large spending plans...because Republicans refused to give on tax revenues of any kind.

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Republicans offered $800 Bn; and yeah, after decades of falling for the "just raise taxes and we pretty promise we'll cut spending" trick, good on Republicans for failing to fall (again) for that canard, and raise taxes on an already anemic recovery.

Pundits continue to say we have a spending problem. While that's true, we also have a revenue problem only very few people dare to acknowledge that.

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our revnue problem is the result of our spending problem. Taxes did not drop to the lowest portion of GDP that we've seen in 60 years because of a tax cut - income tax rates didn't change. They did so because of a massive expansion of government.

Republicans don't want to raise taxes or close tax loopholes

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guess you haven't been paying attention. In fact House Republicans have passed the only plan currently to have gone up before a legislative chamber to strip out the tax loopholes, credits, and shelters. That ludicrous "corporate jet tax break" that the President's OWN "stimulus" started (without a Single Republican Vote in the House), that he now finds anathema to humankind? Republicans voted to strip it and all it's buddies out entirely; the measure died in the Democrat Controlled Senate .

But now that the "full faith and credit of the U.S." has been downgraded, the one thing the President tried to avoid will now happen.

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S&P said if we didn't have a $4T deal we would get downgraded. The President then came out and said his only condition was that it get us past November 2012. It would seem, that the "one thing the President tried to avoid" was having this politically damaging debate again before he was up for reelection.

Bond interest rates will increase; morgtage, credit card and car loan rates will also increase.

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ready for this?

GOOD.

If there is one thing Americans need, it is a period of deleveraging. We should be paying down debt, not going deeper into it.

Banks and private investors will find it harder to raise revenue. Small business owners will find it even more difficult to get loans. And for what? Because one side of the political divide didn't want to compromise under any circumstances even when they were getting over and above what they wanted.

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and this would be the side that was offered $800 Bn in revenue increases and turned it down. Obama was given no less than three options that would have avoided a downgrade and he rejected them all. Now, you can say that that's because he should have demanded more taxes, and okay, I get where people would believe that, but if he rejected the plans that would have avoided downgrade in order to hold out for higher taxes, then HE is the one who chose through intransgience to put us here.

cpwill said:

Republicans offered $800 Bn; and yeah, after decades of falling for the "just raise taxes and we pretty promise we'll cut spending" trick, good on Republicans for failing to fall (again) for that canard, and raise taxes on an already anemic recovery.



our revnue problem is the result of our spending problem. Taxes did not drop to the lowest portion of GDP that we've seen in 60 years because of a tax cut - income tax rates didn't change. They did so because of a massive expansion of government.



guess you haven't been paying attention. In fact House Republicans have passed the only plan currently to have gone up before a legislative chamber to strip out the tax loopholes, credits, and shelters. That ludicrous "corporate jet tax break" that the President's OWN "stimulus" started (without a Single Republican Vote in the House), that he now finds anathema to humankind? Republicans voted to strip it and all it's buddies out entirely; the measure died in the Democrat Controlled Senate .



S&P said if we didn't have a $4T deal we would get downgraded. The President then came out and said his only condition was that it get us past November 2012. It would seem, that the "one thing the President tried to avoid" was having this politically damaging debate again before he was up for reelection.



ready for this?

GOOD.

If there is one thing Americans need, it is a period of deleveraging. We should be paying down debt, not going deeper into it.



and this would be the side that was offered $800 Bn in revenue increases and turned it down. Obama was given no less than three options that would have avoided a downgrade and he rejected them all. Now, you can say that that's because he should have demanded more taxes, and okay, I get where people would believe that, but if he rejected the plans that would have avoided downgrade in order to hold out for higher taxes, then HE is the one who chose through intransgience to put us here.

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Republicans want to strip the tax loopholes and raise revenues? If you believe this is true, you are blinded by fake facts compliment of fox news or in just plain denial. Most members of the house have signed the holy anti-tax pledge, refusing to budge even if it means the destruction of the American economy. Several polls show Americans want a balanced approach to the budget, including tax revenues. For you to sit here and tell me Conservatives WANTED to diminish tax loopholes is just plain rediculous. They ran away from the table as soon as it became time to raise taxes on the wealthy. Why do you think our government was on the breaking point during the Washington Debt Ceiling negotiations? It was ALL about the GOP's refusal to pass a balanced approach to the budget, which is exactly what the American people wanted, and your party STILL refused to accomidate their needs. In all the years I have been watching politics I have never seen the democratic party reach so far across the table in order to reach a comprimise. Democrats stand for entitlement programs. Even the HINT of them agreeing to cut some funding to these programs their re-election campaigns depend on to avoid economic disaster in America shows the American people whos willing to be the adult at the table.


Also. Was it not the GOP party, well I suppose the tea party, along with SOME GOP house members, who said raising the debt ceiling was not a big deal, and would not result in any economic damage? Have you seen the stock markets the past week? Every day on average is about a 400 point loss on all major markets. This is a DIRECT result from Washingtons in-ability to be adults and reach a comprimise. Investors now have little cofidence our government can even work a vending machine, let alone the strongest government in the world. This ALL could have been avoided if your GOP house leader, John Boehner, could have bit the bullet on his treasured tax cuts, and simply reach a long term deal with President Obama and the Democrats. You can blame Obama all you want for the reason this deal could not be reached, but when it comes down to it, Democrats gave your party just about everything you desired, and for Obama to demand a few additional tax increases at the end of the bill to seal the deal, Is nothing compared to what the Democrats have lost in that negotiation, and I believe the majority of polls agree with me. Americans WANT higher taxes on the rich, and if the GOP is unwilling to give them that demand, say goodbye to your house and senate seats.

I always get a kick out of those complaining that people get their talking points from Fox News and then their rant turns into one big talking point.

Let me just note....Wall Steeet does not equal the economy. If it did we all would have been eating caviar the last year. Boehner had agreed on 800 billion in additional revenue. The president then balked at that and demanded even more. He then got nothing.

SypherAL said:

Republicans want to strip the tax loopholes and raise revenues? If you believe this is true, you are blinded by fake facts compliment of fox news or in just plain denial

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all but 4 House Republicans, in fact, voted for that. they passed it, and it died in the Senate.

Most members of the house have signed the holy anti-tax pledge, refusing to budge even if it means the destruction of the American economy. Several polls show Americans want a balanced approach to the budget, including tax revenues. For you to sit here and tell me Conservatives WANTED to diminish tax loopholes is just plain rediculous.

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it was part of the centerpiece of the tax structure of the 2012 budget, in fact.

They ran away from the table as soon as it became time to raise taxes on the wealthy.

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Boehner offered up $800 Bn. even after Obama reneged on that agreement, Boehner made a point of going on national television and saying that he had never taken that offer off the table.

Why do you think our government was on the breaking point during the Washington Debt Ceiling negotiations?

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because on particular individual refused to compromise, and killed the not one, not two, but four plans that would have saved our AAA rating?