Recovering From U.S. Credit Downgrade

By: Eyewitness News Email
By: Eyewitness News Email

Investors are cautiously eyeing the markets today. It's the first day of trading since Standard and Poors downgraded America's credit to double-A-plus... for the first time ever. The market's reaction today is anybody's guess:

"This is kind of unchartered territory."

The head of S&P's ratings committee said Sunday if the U.S. doesn't get its fiscal house in order, it could be downgraded AGAIN within 6 months.

John Chambers says, "The outlook includes at least a 1 in 3 chance of a downgrade over that period."

"The good news about the downgrade, if you can see any good news in it, is that it will focus the mind of policy makers to deal with its long-term problems."

But lawmakers are pointing fingers. They traded barbs on the Sunday talk shows.

This president has failed to lead and in any other private sector enterprise he would be fired."

Before the downgrade, the Dow took a huge hit - losing 500 points last Thursday - in part over debt concerns in Europe. The European Central Bank now says it will implement a bond-purchasing program to prop-up Italy and Spain's shaky economies. Treasury Secretary Tim Geithner talked with G-7 leaders Sunday night - all pledging to cooperate. He also informed President Obama he'll stay on in his post through the 2012 election.

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  • by Leonardo Location: Bongo Congo on Aug 9, 2011 at 06:21 AM
    Just remember this current cycle started with the all holy Ronald Reagan, was given a great push by a Republican Congress under Slick Willy and then put on the fast track by that idiot GW Bush. Obama needs to get rid of Bernanke and Geitner, grow a pair and kick some Republican AND Democrat heinie. NOTHING will change until all private funding is taken out of election campaigns.
  • by tom Location: madison on Aug 8, 2011 at 05:54 PM
    Total annual income for the Jones family: $21,700 Amount of money the Jones family spent: $38,200 Amount of new debt added to the credit card: $16,500 Outstanding balance on the credit card: $142,710 Amount cut from the budget: $385 Now change the names to Uncle Sam and add 8 zeros after all figures.....we are headed for the waterfall and it is too late. Got Gold snd Silver yet?
  • by Gerry on Aug 8, 2011 at 03:55 PM
    Which majority party in the House was it which first raised the possibility that the debt ceiling would not be increased? Not raising the debt ceiling would plunge the US into depression. The US borrows $1.3 trillion per year (the amount of the current deficit). If $1.3 trillion of fed gov spending just disappears, what do you think would happen to the US economy? The Tea Party essentially is the equivalent of a lynch mob, of vigilantes.
  • by tom Location: madison on Aug 8, 2011 at 03:09 PM
    Why aren't my comments being posted????? Too conservative?
  • by Anon on Aug 8, 2011 at 01:22 PM
    First it was all Bush's fault, now it's the Tea Party's fault. You liberals are surely grasping at straws now.
  • by just me Location: tally on Aug 8, 2011 at 01:15 PM
    You're a first class fool if you think we got downgraded because the tea party wants the US to live within it's means...
  • by Widower Location: Wakulla on Aug 8, 2011 at 09:45 AM
    The debt downgrade brought to you by the tea party. Rep. Steve Southerland voted against the debt deal last week saying it did not go far enough. Remember this at the next election.
  • by dog Location: gone on Aug 8, 2011 at 09:36 AM
    Relax it's just more POLITICS.
  • by mal Location: Tallahassee on Aug 8, 2011 at 08:48 AM
    S&P will probably downgrade that AA rating to Junk Bond status if Congress fails to act responsibly and does not raise taxes ASAP. The TEA party has a single-minded purpose just as the Prohibition Party had a single-minded purpose and we all know just how successful the Prohibition party was with THEIR program.
  • by 3minidoxies Location: Tallahassee on Aug 8, 2011 at 07:57 AM
    With ANY kind of luck every TEA party member lost a fortune in this stock downturn. S&P may not be the "be all and end all" of financial intelligence, but they do know that simply increasing the debt limit without raising taxes is an exercise in mental masturbation!
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