What is the cause of the U.S. credit downgrade? (Part 3)

Born in The USA – John Candy – Canadian Bacon

What is the cause of the U.S. credit downgrade? (Part 3)

 
Still of Alan Alda, John Candy, Kevin Pollak, Rip Torn, Michael Moore and Rhea Perlman in Canadian Bacon

7 January 2011
© 1995 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved.
Still of Alan Alda, John Candy, Kevin Pollak, Rip Torn, Michael Moore and Rhea Perlman in Canadian Bacon

Michael Moore is a liberal movie director and his films have been pitiful. However, I did enjoy the movie “Canadian Bacon” which was very funny. Above is a clip from that movie.

Liberal firebrand Michael Moore called on President Obama to respond to the U.S. credit downgrade by arresting the leaders of the credit-ratings agencies.

On his Twitter feed Monday, the Oscar-winning film director also blamed the 2008 economic collapse on Standard & Poor’s — apparently because it and other credit-ratings agencies did not downgrade mortgage-based bonds, which encouraged the housing bubble and let it spread throughout the economy.

“Pres Obama, show some guts & arrest the CEO of Standard & Poors. These criminals brought down the economy in 2008& now they will do it again,” Mr. Moore wrote.

Standard & Poor’s, one of three key debt agencies, stripped the U.S. federal government of its AAA status Friday night and reduced it to AA+ for the first time in the nation’s history.

I don’t think that Standard and Poors did anything wrong and I think they would have been wrong if they did not act because of all the political pressure they were receiving from the Obama administration. My views are much closer to those below.

Tea partiers aren’t too happy with MoveOn.org, Obama campaign strategist David Axelrod or Massachusetts Democratic Sen. John Kerry for labeling the first-ever downgrade of America’s credit rating by Standard & Poor’s as the “tea party downgrade.”

FreedomWorks President Matt Kibbe told The Daily Caller that liberals are using the slogan to distract Americans from the bad economic numbers he says President Obama’s policies have caused. “Well of course they want to say that,” Kibbe said of how the Obama administration is attempting to blame the tea party movement for the credit downgrade. “They don’t want to talk about how Obama’s fiscal policy led to this and 9.1 percent unemployment.”

Kibbe noted that Obama never provided his own debt plan and added that he believes it was Democrats and liberal Republicans who perpetuated the “out-of-control spending” that led Standard & Poor’s to downgrade the U.S. credit rating from AAA to AA+ with a negative outlook for the first time in the nation’s history.

Let Freedom Ring executive director Alex Cortes said the reason his organization launched TheObamaDowngrade.com is to point out how it’s largely the president’s fault for the credit downgrade. Like Kibbe, Cortes says both political parties are responsible for overspending through the years. But, he argued, Republicans are the “only ones” who have put “serious reforms” on the table in recent months.

_______________________________________

Terry Miller, director of the Center for International Trade and Economics at the Heritage Foundation, talks about Standard and Poor’s downgrade of the U.S.’s debt rating to AA+ from AAA and its impact on investment strategy. Miller speaks with Betty Liu and Erik Schatzker on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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