Monday, August 08, 2011

Thug Tactics: Senate Banking Committee to Probe S&P

Sure, this ought to help get America's credit standing back to where it was.
The Senate Banking committee has begun probing last week's decision by Standard and Poor's to downgrade the U.S. credit rating, a committee aide told Reuters on Monday.

The aide said the panel was gathering information about the S&P move but no decision had been made on whether it will hold hearings into the downgrade.
Would they ever accept responsibility? Hell no.
Congressional Democrats on Monday lashed out at Standard & Poor's, labeling the firm's decision to strip U.S. debt of its triple-A rating as "irresponsible" as stocks fell sharply on the first trading day following the downgrade.

But House Republican leaders watched the rout in the stock markets and warned colleagues not to feel pressured into raising taxes to address the U.S. debt of more than $14.3 trillion. The reactions underscored how lawmakers of all stripes are trying go back on offense and steer a path forward after being put on the defensive by the ratings firm's criticisms of a dysfunctional political process.

"I am deeply disappointed in S&P's decision to enter into the game of political punditry," Senate Banking Committee Chairman Tim Johnson (D., S.D.) said in a statement. He called the downgrade an "irresponsible move" that may " have spillover effects" such as higher borrowing costs for home buyers, credit- card holders, car buyers, and state and local governments.
Running up trillions in debt apparently isn't irresponsible.

After today's 634-point plunge, expect a repeat tomorrow.


fiatlux said...

My prediction: the session will not happen

The potential for embarassment of the clueless Senators is huge, the potential to land meaningful blows on S&P in an open session in which they are allowed to respond is miniscule. Some bright 23 year old staffers will lock up the liquor cabinet and explanin this to the idiots.

Michael Ryan said...

Actually, I think it would be more interesting if S&P was to turn this around.  They have considerable access to sources and contacts w/o even breaking confidentiality laws.  Let's see what sort of information about the financial dealings of the various senators involved they can come up with.