Famous Last Words

And for some bizarre, unexplained reason, Tim Geithner is still the U.S. Treasury Secretary.

Credit rating downgrade hits markets

U.S. stocks tumbled, following the biggest weekly drop in the Standard & Poor’s 500 Index since 2008, amid concern that a downgrade of the nation’s credit rating by S&P may worsen an economic slowdown.

The U.S. credit rating downgrade extended a rout that wiped out $1.94 trillion in market value from the country’s stocks. S&P lowered the U.S. long-term rating one level to AA+ after markets closed on Aug. 5 while keeping the outlook at “negative” as the company becomes less confident that Congress will end Bush-era tax cuts or tackle entitlements.

See also:
The Impact Of The S&P U.S. Credit Downgrade On Small Businesses
sting Icons Weigh In On U.S. Credit Downgrade
2ND UPDATE: Goldman Sachs: S&P’s US Downgrade May Be ‘Material And Adverse’ -Filing
U.S. Credit Downgrade Leaves ‘Horrible Impact’
Wall St. panics as Washington dawdles and the wheels come of the economy
GOP candidates slam Obama on US credit downgrade
Senate panel reviewing S&P downgrade
Was S&P downgrade an act of revenge?
Rating Agencies in Spotlight Following Downgrade

Of course, the Democrats got their talking points together and tried blaming the Tea Party.

Seriously, blaming the Tea Party is about as ridiculous as blaming the fireman for starting the fire.

/the obvious problem, to any sane observer, is that Obama and the Democrats just spend too damn much money

Obama Plays Hide The Terrorist

Congress specifically prohibited Obama and Holder from moving terrorists from Guantanamo to U.S. soil, so the clown pair thumbed their big red bulb noses at Congress and did an end around, skipped Gitmo, and just flew the terrorist directly to New York, so they can tie up Manhattan traffic and waste millions of taxpayer dollars for extra security on a shaky, at best, pet project civilian trial.

Obama faces criticism from all sides for terrorism suspect’s offshore interrogation, civilian trial

After holding a Somali terrorism suspect for two months on a U.S. warship, the Obama administration secretly flew him to New York for trial in a civilian court, leaving both rights groups and Congress infuriated.

The clandestine imprisonment at sea echoed Bush-era – and widely condemned – efforts to deny detainees constitutional protections while interrogating them offshore. Meanwhile, opting to surreptitiously bring the Somali to a U.S. federal court not far from where New York’s twin towers once stood gives the President a chance to circumvent Congress, which has thwarted efforts to put high-profile al-Qaeda suspects on trial in civilian courts.

Ahmed Warsame, said to be in his mid-20s, is hardly a major figure. He is described as a go-between for Somalia’s militant Al-Shabab group and the shadowy al-Qaeda in the Arabian Peninsula, located mainly in Yemen.

According to U.S. officials, he willingly operated with interrogators on board a U.S. warship. Once they were finished with him, after two months, a “clean” team from the FBI read him his rights to keep silent and have a lawyer, but the officials said he waived those rights and kept talking.

See also:
Obama under GOP fire for bringing terror suspect to U.S.
New Terror War Tactic? Alleged Al Qaeda-Linked Operative Secretly Held 2 Months on US Navy Vessel
McConnell Blasts Administration for Handling of Somali Terrorism Suspect
Republican Lawmakers Angry Over Handling of Somali Terrorism Suspect
Rights of Somali suspect may pose issue: U.S. judge
Somali Is Charged With Aiding Al-Qaeda in Arabian Peninsula
First secret terror detainee under Obama was held for two months
Terrorism Case Reignites National Security Debate
Somali Terror Suspect Met With Awlaki in Yemen Before Capture, Official Says
Drift: How This Ship Became a Floating Gitmo
Ahmed Warsame and Law of War Detention

Ahmed Warsame was held for two months and interrogated without a lawyer or being read his Miranda rights and Obama and Holder thinks that’s okay because Warsame was eventually read his rights and then a “clean” FBI interrogation team was brought in for more questioning? How, exactly, is that going to work in Federal, civilian court? Warsame’s court appointed, free defense lawyers are going to have a field day at a picnic. And what about all the extra security that’ll be necessary?

/whatever angle you look at this public spectacle from, it’s going to be a circus at a zoo and you, the taxpayer, are going to pay for every last extra penny of Obama and Holder’s clown show

The State Of The Union Is Not Strong

The U.S. economic forecast looks grim and we’re definitely expecting more rain.

UPDATE: CBO Estimates 2010 Deficit At $1.34 Tln

A new projection from the Congressional Budget Office forecast the federal government’s budget deficit for fiscal 2010 would total $1.34 trillion, improving to just over $1 trillion in fiscal 2011, which begins on Oct. 1.

If the CBO’s figures are reached, the deficit in the current fiscal year would be equal to 9.1% of U.S. gross domestic product, compared with fiscal 2009’s mark of 9.9%.

The latest figures from the nonpartisan agency portray a dreary picture of the U.S. economy, predicting U.S gross domestic product would only grow by 2% between the fourth quarter of 2010 and the same period next year.

It said the unemployment rate would not fall back to the long-term average of 5% until the end of 2014.

The CBO said since mid-2009, the recovery in the U.S. economy had been “anemic” compared with the periods following earlier recessions.

The projections involve several assumptions that likely make them optimistic. They assume the Bush-era tax cuts expire at the end of 2010, for example, and also that Congress makes no further annual adjustments to prevent the alternative minimum tax from hitting middle-class taxpayers.

The projections also don’t include any further government stimulus efforts to accelerate the lagging economy.

Read the report:

The Budget and Economic Outlook:
An Update

See also:
Keeping tax cuts beneficial in short term, harmful over long term, CBO says
Stimulus and tax cuts now, smaller economy later, CBO report says
Analysts: CBO GDP Forecast A Fantasy
Budget analysts: Near-record 2010 deficit of $1.3T
UPDATE 1-U.S. 2010 budget deficit at $1.342 trln – source
$1.3-trillion U.S. budget deficit expected
Projected US budget deficits threaten to curtail growth: CBO
Gloom weighs on fragile US recovery

The economy’s in shambles and getting worse by the day, so what does Congress and Obama do? Why naturally they all go on vacation for the rest of the month! Crisis, what crisis?

/if these so called people’s representatives don’t get deadly serious about making the hard and unpopular choices that are necessary to get us out of this massive deficit mess, we’ll soon be past the debt with interest tipping point and unable to avoid total economic collapse no matter what anyone does