Posted on 04/19/2011 6:43:50 AM PDT by SeekAndFind
Why did Standard & Poor's drop its "negative" long-term outlook bomb on America's AAA credit rating yesterday? S&P revealed no numbers not previously known to a "shocked" stock market, which dropped 140 points. So what's new?
Chief White House economist Austan Goolsbee declared that S&P had made a "political judgment," and we'd have to agree, though probably not for the same reasons. The bulk of S&P's analysis is taken up with repeatedly citing what it sees as next-to-no chance that Washington will do anything significant on deficit reduction this year or next.
"The outlook reflects our view of the increased risk that the political negotiations over when and how to address both the medium- and long-term challenges will persist until at least after the national elections in 2012," said the credit rating outfit. S&P's announcement is almost wholly a political analysis of the budget outlook.
There is only one reason the rating agency could suddenly have turned this dark on politics in Washington: President Obama's speech at George Washington University last Wednesday. Mr. Obama's "fiscal policy" speech may have sent progressive pundits cart-wheeling, but its political effect was to poison the prospect for budget negotiations.
The harshness of Mr. Obama's anti-Republican rhetoric and the universal conclusion that this was a Presidential campaign speech make it very difficult for GOP Congressional leaders to believe they can enter into a budget negotiation in which the White House will deal in good faith.
(Excerpt) Read more at online.wsj.com ...
Don’t worry. Saxby Chambliss will be there to take away your home loan deduction.
Since you have to spend $3.00 for every $1.00 of deduction you get, this “deduction” is really a mirage.
When people say they are buying a house for the deduction, they reveal their ignorance. Same with when they say they don’t want to pay off their house.
And Johnny Isakson will be there to cancel out Chambliss’ vote.
The point is you can deduct your house payment because for a long time it’s interest and taxes. You can’t deduct rent.
So explain to me why you would want to pay off your house early? Even assuming the tax deduction on the interest on your home loan goes away, the current policy of the fed is devaluing the currency. It is much better to pay off the bank later with dollars that are worse less than to pay off your house now.
“This week Mr. Obama is taking that speech on what looks like the campaign trail”
It sure does. He’s “Selling” his debt reduction plan in swing states.
S&P can read the writing on the wall, it is gonna be all-Class-Warfare-all-the-time through November, 2012
AAA credit rating tanking.Another well poisoned by Obama.
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