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Originally Posted by seattleflamer
So is S&P saying plague to both your political houses then? If so, why the political commentary? The fact is the ceiling was raised and an agreement reached to cut ~1trillion in spending. They should be satisfied that the US is on the path to get it's fiscal house in order.
Based on S&P's logic or concern of the political situation, on November 12, 2012 they will upgrade back to AAA since, either the Democrats will have the house again or you'll see all 3 branches controlled by Republicans or neoReps.
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I don't think it's as simple as blaming it on a divided House. It's the underlying political climate in the US that has become 'win at all costs' even if it harms the country in the process.
Shouldn't investors be concerned with what they saw the US leaders do? I know I would be.
Secondly, about the cuts or deal in general, it has been widely looked at as not nearly enough. Many organizations wanted 4T in cuts. While I don't agree with that, they should have at least added some tax increases to offset the lack of cuts. I think the deal was looked at as too little, too late. Which makes the whole issue of it being such a problem to get to even more concerning.