S&P Not Done Yet

If you think the Downgrade Heard 'Round The World was just a shot across the American bow, guess again, Riddler:

Standard & Poor's Managing Director John Chambers said Sunday there is a 1-in-3 chance of a further U.S. credit rating downgrade over the next six months to two years.

"We have a negative outlook . . . from six months to 24 months," he said on ABC's This Week.

"And if the fiscal position of the United States deteriorates further or if the political gridlock becomes more entrenched, then that could lead to a downgrade. The outlook indicates at least a one in three chance of a downgrade over that period."

Chambers said that it would take some time for the United States to recover its AAA rating.

"It would take a stabilization of the debt as a share of the economy and eventual decline. And it would take, I think, more ability to reach consensus in Washington than what we're observing now," he said.

A classic case of demanding the ends yet denying the means.  Given that the American Left wants precisely the collapse to which Mr. Chambers refers in order to "fundamentally transform" America once and for all, the White House and congressional Dems have the green light to obstruct fiscal reform to the gates of hell and beyond.

Almost as if this was a not-so-coded signal.

And you know on whom they will blame it when it happens, right?

The only miracle in my mind is that Mr. Chambers sets the odds of another downgrade so low, unless this is a tacit recognition of the Chicago Cherubim's plummeting re-election chances.

Meanwhle the Tel Aviv stock exchange plunged 7% at its Monday opening bell in reaction to the downgrade, and a remarkable odd couple has been christened:

Publisher Steve Forbes says S&P’s downgrading of U.S. credit was a political and “outrageous move.” However, Forbes said Sunday on CNN’s State of the Union that, if other credit rating agencies don’t downgrade, the effect of S&P’s action on U.S. stock markets will be minimal.

Appearing on the same show, former economic adviser to President Barack Obama Larry Summers also condemned S&P’s move but blamed the credit rating agency’s rationale behind the downgrading on the House GOP majority.

 

Forbes said S&P’s action was surprising, in light of the fact that the government can meet its credit obligations.

 

“I think in a narrow sense it is a political move . . . an outrageous move,” Forbes said. “The government can pay its debts, it is legally obligated to do so, its got the wherewithal to do it. In a larger sense about the economy, I think the U.S. economy is in a perilous state, this recovery has been the worst from a severe recession since the Great Depression.

 

“But I am surprised S&P would play politics — the U.S. government can pay the interest and principal on the bonds — but in a broader sense we do have severe economic troubles, but we will be able to pay the interest and principal on the bonds,” the one-time GOP presidential hopeful said.

Perhaps a tacit recognition on Forbes' part of what Glenn Beck is saying, that S&P is "in on it" as the triggerman for the beginning of George Soros' grand final endgame?  Only his hairdresser knows for sure.  As to Summers, it's too late to beg his way back onto the U.S.S. Obamatanic.

Actually, though, I wasn't referring to Summers with that Odd Couple crack above:

I seem to recall Warren Buffet being a big proponent and fan of Red Barry and his "green energy" wet dream back in '08.  But, heck, it's not like Obamanomics can touch him, at least until the mobs come to string him up from the nearest lamppost next to Mr. Forbes.

Now THAT's a crucifixtion conversation I want to here.