Posts

Showing posts from August 12, 2011

S&P is right on the money

Business Times - 13 Aug 2011


S&P is right on the money

Policymaking in Washington has indeed become 'less stable, less effective and less predictable' , given how the Tea Partiers are open to a US govt debt default

By LEON HADAR
WASHINGTON CORRESPONDENT

IMAGINE if Standard & Poor's had not issued a downgrade on US government debt last week. Obama administration officials and the same economic pundits that are now blasting the global credit rating agency for lowering its US debt score one notch - from the riskless AAA to AA+ - would be spinning S&P's decision to maintain the triple-A rating as a clear sign that America's financial foundation remains strong, notwithstanding the mounting federal deficit and the just-concluded bruising debate over raising the debt ceiling.

'I think that S&P showed really superb judgment,' US Treasury Secretary Timothy Geithner would have stated on one of the television news shows if S&P had concluded that U…