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

Next Time They Shoot To Kill

Isn’t having Obama as President awesome? Because Obama still insists on raising taxes in a slow economy, something everybody knows would never pass the House of Representatives, the United States is in danger of losing its AAA credit rating. No one can say we haven’t had an impossible to miss or misinterpret warning shot fired across our bow.

U.S. Debt Rating Placed on Review for Downgrade by Moody’s as Talks Stall

Moody’s Investors Service raised the pressure on U.S. lawmakers to increase the government’s $14.3 trillion debt limit by placing the nation’s credit rating under review for a downgrade.

The U.S., rated Aaa since 1917, was put on review for the first time since 1996 on concern the debt threshold won’t be raised in time to prevent a missed interest or principal payment on outstanding bonds and notes, even though the risk remains low, Moody’s said in a statement yesterday. The rating may be reduced to the Aa range, and there is no assurance Moody’s would restore its top rating, even if a default is quickly “cured.”

See also:
Moody’s May Downgrade U.S. Debt, If Crisis Isn’t Resolved
Moody’s: If U.S. Misses Debt Payment, Rating Could Be Cut Next Day
Moody’s moves on US credit rating
Moody’s puts debt rating on review
Moody’s downgrade threat adds to US woes
Moody’s considers downgrading U.S. credit rating
Moody’s Puts U.S. AAA Credit Rating at Risk of Downgrade
US debt crunch: A nation taken to the limit
Reports: S&P Says U.S. Rating Could Be Downgraded If It Misses Any Payments
Cost of Protecting U.S. Debt Rises on Moody’s Action

Boy oh boy, you think we have a debt problem now? Just watch what happens if our debt rating gets cut. It will immediately become more expensive to borrow money, thus compounding our already beyond serious debt woes, a self inflicted wound, like tasering ourselves in the neck. Obama needs to drop his, non starter in the House, tax increase obsession and get on with increasing the debt ceiling. You know, if Obama wanted to intentionally destroy the U.S. economy, he couldn’t be doing a better job. Is he the President or an enemy of the United States?

/if you’re ever wondering what Obama might be thinking of regarding U.S. economic policy, just ask yourself, what would Vladimir Putin do (WWVPD)?

Do We Have Your Attention Now?

This is a clear warning shot across this country’s economic bow and definitely not a good development.

U.S. Warned on Debt Load

A blunt warning Monday from a credit rating firm about the U.S. government’s mounting debt pushed stock markets lower and intensified political divisions in Washington about how best to tackle growing deficits.

Both the Obama administration and House Republicans scrambled to gain leverage from Standard & Poor’s changing its outlook on U.S. Treasury securities to “negative” from “stable.”

S&P didn’t lower its top-notch AAA-bond rating for U.S. government Treasury securities, and their prices initially fell but later rebounded amid optimism that the report could serve as a catalyst to force both sides in Washington to compromise.

See also:
US faces credit downgrade if debt not cut
UPDATE 3-White House, Congress under pressure from S&P move
S&P’s warning to Uncle Sam
Stocks sink after S&P downgrades US outlook
S&P Downgrade Of U.S. Debt Says Nothing New
Outlook change stokes political battle over US debt
JP Morgan’s Comments on the SP Downgrade…. “fiscal issues are serious”
Analysis: Obama plays down S&P outlook change
White House calls S&P downgrade political judgment
House Dems insist S&P warning means Congress should raise debt ceiling, no strings attached

Boy, all I can say is that Obama and Congress had better get off their asses and do something substantial to get our national debt problem under control. And they need to do it soon.

/and if you think we have serious fiscal problems now, just wait and see what happens if we ever lose our AAA rating, it will not be pretty