If you think the President heard the wake-up call by the S&P, think again. It’s everyone else’s fault so he’s not going to do a single thing differently. We know it’s the tea party’s downgrade even though their proposals would have saved our rating.
The other demon of the week is the S&P and Obama has unleashed his thugs after them under the auspices of the anti-capitalist Dodd-Frank Financial bill.
Is it terrorism? Watch what the SEC does next. Three days after the S&P downgraded us to AA+ with a negative outlook, the SEC has decided to enact rules to monitor and control this independent, nonpartisan organization. One of the rules is to demand the ratings agencies reveal any “significant” errors in calculations. Who defines “significant” and how will it be defined? A politician based on his election needs?
President Obama and Timothy Geithner claim the S&P made a $2 trillion error in the forecast to 2021, which the S&P denies. In any case, they say it had nothing to do with the downgrade, which was based on our deficit and apparent inability to deal with it.
The Dodd-Frank bill had the new thuggish rules hidden away in it, and Obama’s SEC is only too willing to go after S&P – interesting timing. I’m no lover of ratings agencies nor do I think they will be taken for psychics, but this reeks of bullying and intimidation. Heck, it’s like terrorism. Read here: Reuters reports that SEC demands S&P reveal errors.