Un-Credible S&P

Standard & Poor's decision to downgrade the United States' credit rating should matter very little, which I believe it will. It may have some short-term repercussions but overall will have little influence on the markets. The main issue is S&P's credibility, which they have none of. This was the same agency that was giving incredibly risky subprime mortgage bonds triple-A ratings right before they contributed heavily to the financial collapse of 08'. Its kind of odd that they're still in business. Coupled with the revelation that they made a two trillion dollar miscalculation (that was able to be pointed out by the White House within hours) that influenced this judgement further undermines their already questionable credibility.

However, S&P may have woke up some of the more extremists in each party. Tea Party candidates now may understand the substantial implications of their no-compromise stance. Politicians from both sides now know that the rating agencies aren't afraid to downgrade the most powerful nations' credit rating. They may be forced now to mitigate the rising costs of our entitlements while also raising taxes. But one of S&P's justifications for downgrading the US's credit rating was because the US showed that defaulting on its debts was an actual possibility. Nonetheless, that justification alone doesn't seem significant enough to downgrade our credit rating.

This downgrade, with a certain degree of questionability, exposes the failed leadership of Barack. He ostensibly was for a four trillion dollar plan to cut into our debt before he heard from the House Speaker that it was a no-go for his party (because of "tax increases"). Obama could have easily exposed the hypocrisy of the GOP for their assuming of being the adults who are willing to make the painful decisions. Yet, the GOP cowardly digressed to a 2 trillion dollar plan that cut into discretionary spending adversely affecting the middle and poor class (which are becoming hard to distinguish for one another) because of their insistence on no tax increases. If the GOP were responsible adults like they say they are they wouldn't be acting like little American children who only want it their way. Obama's failure to show this is a characteristic of a mediocre leader.