GOP Downgrade: Let Them Own It

[ProSense]

GOP Downgrade: Let Them Own It

by noweasels

On 360 last night, Anderson Cooper interviewed John Chambers, the S&P executive responsible for the downgrade of US Treasury Bonds:
Video here.

Among other things, Mr. Chambers said:

I think that there's plenty of blame to go around. 

This is a problem that's been a long time in the making, well over this administration and the prior administration. It's a matter of the medium- and long-term budget position of the United States that needs to be brought under control, not the immediate fiscal position. It's one that centers on entitlements and it's entitlement reform or having matching revenues to pay for those entitlements that's at the crux of the matter.

COOPER: What could the United States have done to have avoided this?

CHAMBERS: Well, I think it could have done a few things. The first thing it could have done is to have raised the debt ceiling in a timely matter, so that much of this debate had been avoided to begin with, as it had done 60 or 70 times since 1960 without much debate. So that's point number one. And point number two is it could have come up with a fiscal plan similar, for example, to the Bowles-Simpson commission, which was bipartisan. Although it did not have a supermajority vote, it did have a majority vote and came up with a number of sensible recommendations. 

You could envision other recommendations, but that would have been a start. 


DAVID WALKER, FORMER UNITED STATES COMPTROLLER GENERAL: John, thanks for coming on. 

First, obviously, S&P said back in April that you were looking for something meaningful to happen and up to $4 trillion in deficit reduction over the next 10 years. That didn't happen.

(NOTE: Whether we supported it or did not, the deal President Obama proposed before Speaker Boehner walked out in a huff was in this ballpark. Just noting for the record.)

(SNIP)

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Well, I think it's also important to recognize that Standard & Poor's is not the voice of God here. Standard & Poor's itself had an appalling record during the -- what led to the financial collapse of 2008. They were the ones who were giving clean bill of health to all these investment banks and banks that had invested in these horrible mortgage-backed securities. 

So the idea that they have perfect insight into who is sound and who is not is simply incorrect. As for what this will mean, I mean, obviously, it will be a political football. I don't think most voters have heard of this issue. I don't think most voters care. Most voters care about what they see in the real world, unemployment, whether houses are selling, whether the economy is moving. I think this is likely to be a big sideshow.

CNN

(I think Mr. Toobin's points here are important. I am also skeptical about S&P . . . which, given the importance of what they have to say, makes me . . . well, cynical would be too light a term.)

But then we have this (and, yes, I am quoting a GOP operative):

(Republican strategist Alex Castellanos):

I've written a lot of campaign commercials, but as a political advisor, I wouldn't be writing any tonight. Instead, I would be calling candidates and elected officials that I worked for and I would be telling them, settle down. This is serious. It would be better for you politically and better for the country financially to look like a leader, to reach across the aisle tonight and tomorrow and say, we all know how serious this is. We can do something about it. This is a moment we don't have to pass on to our kids. This is one of those rare moments where what's good for candidates politically is what's good for the country. 



(Wish he'd said this while the Bush Administration was busy creating every possible deficit it could, in order to bankrupt the country and make it impossible for our great nation to honor its obligations to its workers, seniors, poor, disabled and others who should and want to be able to participate in this formerly greatest of nations.)

CASTELLANOS: It's a missed opportunity for candidates who do that tonight chance. They have a chance to be big or they have a chance to be small. It's a chance for big leaders to help us deal with the big problems. So the finger pointing is going to lessen them.

Did they listen?

more

Ezra Klein

<...>

2) Of course S&P is downgrading our political system. Did you see the nonsense we pulled over the past few months? The Republican Party took the country to the brink of default, and for what? A smaller and less certain deficit-reduction deal than they could have gotten if they had been willing to compromise with the Democrats. And then Senate Minority Leader Mitch McConnell said these default-driven deals would be the norm around Washington from now on. Why shouldn’t S&P downgrade our debt?

<...>

[elleng]

1. Klein's got it:

'Senate Minority Leader Mitch McConnell said these default-driven deals would be the norm around Washington from now on. Why shouldn’t S&P downgrade our debt?'

[SpiralHawk]

2. "Victory is ours." - RepubliBaggers (R)

"America is going down, and we will piss Personally Poisoned TEA on the corrupted corpse we created with our fear and hate. Bwaaa ha ha ha ha. Sneer."

- RepubliBaggers (R)

[kstewart33]

3. Great post. Thanks! nt

[onehandle]

4. Obama is President.

As of today, I am downgrading his re-election chances from a certainty to vulnerable.

[SpiralHawk]

5. As of today, I am downgrading your believability to "not"

[Tennessee Gal]

7. I am downgrading you also.

[Doctor_J]

8. His prevaricating clobbered his believeability

He should have forcefully, nightly bashed the Repukes in this order

1. The teabaggers for threatening the world economy, and for refusing to pay the bills that they themselves ran up while Smirk was president (deadbeat republicans, deadbeat republicans, deadbeat republicans...)
2. McConnell and Boner for not being able to control them

Instead he was his usual mealy-mouthed "post-partisan" self, placing as much blame on Pelosi and Reid as on the repukes. He made himself and our party part of the problem, and that is going to cost him dearly next fall.

[ProSense]

11. No

that's just your perception. Congress and Republicans' credibility took a big hit.

[Tennessee Gal]

6. Excellent post. Great summary.

Logical people will see this as a result of what the teabaggers attempted. It is very clear how destructive their positions on the debt ceiling have been. It is also very clear that this country cannot survive economically without closing unfair tax loopholes, eliminating tax incentives for corporations making record profits, ending shipping our jobs overseas, etc. They should wake up to reality, but I don't see that happening.

History has proven that deficits are not reduced and debt cannot be paid down without more revenue.

[Doctor_J]

9. But the president DIDN'T make them own it when he had the chance

See reply 8

[flamingdem]

10. I think the downgrade is unnecessary and part of a strategy to attack Obama

Chambers is another liar working for the Republican agenda
S&P are crooks and incompetent, they won't own their math mistake either

They love this jobless recovery and could care less about entitlements, they
want deregulation and tax cuts and "incentives" and to get government out of
Wall Street.

Their critique of the republicans is just a cover so they can attack Obama.

They opened the door to a wave of attacks and blame of the Obama administration.

There are too many of these elite - global elite - trading this mess in the futures
market and bond market.

They were probably hoping for default to be able to make more $ !!

[Bluenorthwest]

12. Too bad the WH is not making them own it. The WH is still doing

the 'both parties must blah blah' song and dance. Bipartisanship, they still shout, like chumps, while the Republicans go on the instant partisan attack.