“It was the best of times, it was the worst of times…”
I could go on with Charles Dickens’ infamous introduction to A Tale of Two Cities, but I’ll leave it at that.
President Obama entered office as a “moderate reformer” who was going to shake up “politics as usual” in order to push through a bunch of the “hope and change” that he promised to his supporters. Obama-mania swept through liberals, the media, and many mindless independents helping put the President in a position of power to actually follow through many of the changes he sought. And then slowly America has been waking up to the tragic mistake it made on that fateful election day.
You have to ponder about the level of forgiveness that is awarded to a leader before their pile of failures are taken seriously, particularly in a crisis situation. When a ship is sinking and someone comes along passionately claiming he will “pick up a mop” and clean up the mess yet fails to stop the vessel from plunging into the ocean, at what point do his supporters decide that maybe another approach is needed – and fast?
Despite all of the glory Obama received from the drooling mainstream media and much of the electorate his legacy is headed for a disastrous end. Unfortunately he is taking the nation down the tube with him. There is little hope before the next election cycle that the Obama will do what is necessary to patch up the gaping holes he inflicted on hull of USS America. Will his Democrat cohorts in Congress throw away their mops and start using common sense to address the situation? Here is the word on the street:
- We have lowered our long-term sovereign credit rating on the United States of America to ‘AA+’ from ‘AAA’ and affirmed the ‘A-1+’ short-term rating.
- We have also removed both the short- and long-term ratings from CreditWatch negative.
- The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.
- More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.
- Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government’s debt dynamics any time soon.
- The outlook on the long-term rating is negative. We could lower the long-term rating to ‘AA’ within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.
Consumer confidence is falling fast:
Consumer confidence plunged in early August, according to data released Friday.
The severe drop suggests the debt-ceiling debate heightened worries about the U.S. economic future. The Thomson Reuters/University of Michigan early-August consumer sentiment index dropped to 54.9 from 63.7 at the end of July and 63.8 in early July, according to sources who have seen the report released Friday. The latest reading was far below the 62.0 expected by economists surveyed by Dow Jones Newswires.
The preliminary August current conditions index fell to 69.3 from 75.8 in late July. The expectations plummeted to 45.7 from 56.0.
Motivated Republican presidential candidates hitting hard at Obama.
Obama’s approval rating is now below 40%!
“It was the best of times, it was the worst of times,” or as Obama said, it was a “run of bad luck.“