Standard & Poor to Obama: Your Spending Gets a Downgrade

[William Korach]

Standard and Poor has put America's biggest spenders in history on notice. America long term financial outlook is now characterized as "negative" by the credit rating giant. This means that America's AAA credit rating could be in jeopardy. This means that our borrowing costs-interest-will rise if our credit rating drops raising the cost of government even higher. Even higher? Is that possible? 

 

Why did Standard & Poor give America a long term "negative?" Because Obama's speech on the budget was a crude political attack and demonstrated that the President was not serious about cutting the budget. America's debt burden is now a shocking 80% of GDP-and getting worse. The credit markets are watching Obama and have decided that he would rather campaign and attack Republican solutions to the debt crisis rather than solve them.