Erick Erickson on the Downgrade of US Credit

Since S&P downgraded the United States’ credit rating from the sterling AAA to AA+, attacks across the aisle have been complete rubbish. I am not a conspiracy theorist, but this article from CNN seems credible enough to me:

Seriously. All you people on left and right, suspend your disbelief for one minute. Seriously.

What if Barack Obama was right and S&P just got it wrong.

Here’s what I’m hearing and it gives credence to this theory.

S&P, I’m told, began telling some of its clients about the downgrade on Friday morning. That’s why the market was so screwed up on Friday.

By Friday afternoon, the Treasury Department told S&P it had made a $2 trillion math mistake.

But S&P had already told its clients about the downgrade. So it couldn’t walk it back now without a major loss of confidence in its credibility.

Could you imagine that conversation? “Hey . . . um . . . Joe? Yeah, Charlie here from S&P. So . . .um . . . we made a $2 trillion math mistake in our downgrade analysis. . . . What’s that? You just lost $500 million in the market because of it? Oh . . . um . . . sorry, Joe. Better luck next time.”

So it had to come up with a different reason.

Its reason? Acrimony in Washington. In other words, it had nothing to do with the USA’s ability to pay its debts or financial issues, just typical Washington politics. And it couched its statement in such a way that the tea party movement could say, “See! See, we told you Washington needed more cuts,” and the left could say, “See! See, we told you we needed tax increases.”

Read the rest of Erick Erickson’s article at; http://us.cnn.com/2011/OPINION/08/09/obama.right/index.html?hpt=po_t2

 

Perhaps one party is to blame more than the other party, perhaps it is the fault of both parties. Arguments could be made in either direction.

Edited By: Alexis Atherton