Who Should Really Get Blamed for the Credit Downgrade

By
Real Estate Broker/Owner with Oak Creek Realty Group LLC MO# 1999078273

Something I've been thinking about and I haven't seen or heard reported on. Why isn't anyone holding the politicians and the media to blame for the credit downgrade equally? All that happened at the end of the day was a self fulfilling prophecy. The President, Democrats, Republicans and the media have shouted from the housetops for weeks on end that we were going to go into default if a deal wasn't reached by August 2nd to raise the debt ceiling. Now the fact of the matter is that there was never any danger of defaulting on anything. This was all a bunch of hype to scare the public into supporting whatever position one group or the other wanted to take. This was quite like my threatening Visa that if they didn't raise my credit limit I was going to stop paying my bill. It has nothing to do with the ability to pay the debt.

I've been trying to find the quote but I can't find anything on Google so far but I heard Tim Geitner on TV go so far as to say (since the downgrade) that there is no way the US wouldn't pay its debts. Isn't this in sharp contrast to just a week ago when all hell was going to break loose if we didn't raise the debt ceiling. Whose lying? I put it to you that they all are because there was no reason or need to raise the debt ceiling and there have been no real spending cuts and there are no real cuts proposed for the future. Any current cuts have been trivial at best and future cuts don't mean anything since they are based on budgets that have increases in spending automatically built into them. All that is really being proposed is that they cut future increases so there is nothing being cut at all. It's a ruse and they should all be held accountable for it.

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Walter Hayes

Keller Williams Realty of Southwest Missouri

619 S Florida

Joplin, MO 64801

Office: (417) 623-9900

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E-Mail: walter@walterhayes.com

Comments (7)

John Dotson
Preferred Properties of Highlands, Inc. - Highlands, NC - Highlands, NC
The experience to get you to the other side!

Walter,

Agreed.

As a country, we have been headed here for 85 years.  We would have been far better off to have swallowed this pill years ago and adjusted rather than wait until the head of the snake (slug) needed to be cut off.

As a country we still do not have the gonads to admit that we must all now suffer for the blatant waste and economic catastrophe created by the "New Deal" - and all the "deals" since.

When 51% of Americans become dependant upon the government for income/livelyhood/or any kind of subsistance, we will in effect no longer be a republic. We will be a socialist state with all those recipients voting to keep the status quo.

Aug 09, 2011 04:22 AM
Walter Hayes
Oak Creek Realty Group LLC - Carl Junction, MO
Make the Right Move!

By the way, why can't we cut $750 billion+ without so much as a blink of the eye? Why has all the stimulous money that's been spent now become part of the budget? Because baseline budgeting automatically assumes that next years budget will start at this year's expenditure level. Why aren't the Republicans shouting this from the roof tops. Either I'm dead wrong (and I'll happily admit so if that's the case but I don't think I am) or is it that the Republicans in power don't get it yet either which is why they don't like the Tea Party bunch moving in.

Aug 09, 2011 04:28 AM
Walter Hayes
Oak Creek Realty Group LLC - Carl Junction, MO
Make the Right Move!

John - I whole heartily agree with your comments. The only thing I take issue with that's currently going on in the discussion is the talk of entitlements where Social Security and Medicare are called entitlements. It is true that it was a bad idea from the beginning. We'd have all been better off if the government had just passed a law requiring that every individual had to put back 15% of their income into a retirement fund. However, while there are many that do receive benefits they never paid into, the majority have paid into this system for their entire working lifetime and deserve to receive those benefits. If we're going to do anything with these programs it should be that we say they are going to go away after a certain date and you'd better be ready to make it on your own. Then we that will never be able to get this money should be able to depreciate the loss over time so that we can recoup what has, in effect, been stolen from us. If the federal government had put this money aside and let it accrue interest from day one there would be no social security problem today but instead it went into the general fund and they have stolen it for other things.

Aug 09, 2011 04:35 AM
John Mosier
Realty ONE Group Mountain Desert - Prescott, AZ
Prescott's Patriot Agent 928 533-8142

Walter -- Thanks for writing this post. I got a message that said had it not been for the TEA Party, we would be rated BBB by now. The TEA Parties have been the major force behind slowing down the spending. We do not presently have the power, especially in the Senate, to stop the spending, but we will change that in the elections of 2012.  I think we can start that change sooner if we get organized enough to scare the ESTABLISHMENT in BOTH parties with poll numbers.

Aug 09, 2011 02:23 PM
Ron Brown NMLS #270845
NMLS ID: 40831 - Federal Way, WA

536 elected officials, and 9 supreme court justices.  That's who you blame.

Aug 09, 2011 02:44 PM
Walter Hayes
Oak Creek Realty Group LLC - Carl Junction, MO
Make the Right Move!

Thanks for the comments. Ron I'm not sure about all 536 in Congress but there's a large chunk of them for sure.

Aug 09, 2011 04:24 PM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Jay Leno played a quote from Treasury Secretary Geitner last night from 2010 saying that the risk of a rating downgrade was ridiciulous.  Jay's punchline was quotes that you wish you woud never have made. 

Aug 10, 2011 02:22 AM