It was like a Scud missile landing on Wall Street: yesterday’s news that Standard & Poor’s had warned the U.S. might lose its top credit rating.
Investors ran for cover and the Dow plummeted 140 points, although it still closed above 12,200.
So, what to think? And what to do?
First of all, I find it ironic that S&P suddenly gets nervous about the debt under President Obama – when they never said a peep about the soaring debt and out-of-control spending under George Bush.
Second, it’s important to remember that S&P is one of those “infallible” credit rating agencies that totally missed signs of our pending economic collapse in September 2008 – and issued no warnings about it.
So, I take anything S&P says with a grain of salt.
Still, it’s a serious warning because it has serious impact.
And what it says above all else is: it’s time for Republicans to stop playing political games with the deficit.
First, they threatened to shut down the government if they didn’t get their way on the 2011 budget deal.
Now, they’re threatening not to raise the debt ceiling unless they get even more cuts.
No wonder investors are nervous. But Republicans don’t care.
That’s’ my parting shot for today.