S&P Downgrade May Cloud Obama Re-Election Bid Even as It Damages Congress

[Purveyor]

The downgrade of the U.S.’s AAA credit rating by Standard & Poor’s darkens President Barack Obama’s re-election chances while also damaging members of Congress from both parties as they prepare for the 2012 campaign, political analysts said.

With Obama’s job-approval rating at 48 percent and an all- time high of 82 percent of Americans giving Congress negative marks in a New York Times/CBS News Poll taken this week, the downgrade will hurt the president and lawmakers by fueling economic uncertainty, possibly raising interest rates and wounding national pride, analysts said.

“Americans expect to be No. 1 at everything,” said Republican strategist Ron Bonjean. A downgrade is “a great insult and humiliating to the country.”

Added Bonjean, “If this brings rising interest rates on credit cards and mortgages, it is going to send a political shockwave throughout the system, and there will definitely be a ‘throw-the-bums-out’ mentality.”

MORE...

http://www.bloomberg.com/news/2011-08-06/s-p-downgrade-may-cloud-obama-re-election-bid-even-as-it-damages-congress.html

[woolldog]

1. It'll prove insignificant.

Everyone thinks S&P is a joke and publicity whore for doing it. And it's pretty clear this is congress' fault anyway.

Obama can just say "I had a 4 trillion dollar deal on the table and Boehner walked away."

[Poll_Blind]

2. We'll find out Monday. Without a doubt. Markets aren't driven by facts but by perception and...

...if the perception really is that S&P is a joke, then we've little to worry about.

PB

[still_one]

6. The stock market has been and is extremely manipulated. One thing that does say volumes is that

bond market has been booming since bill gross and the rating agencies have been spreading their doom of U.S. debt

Obviously, the majority of people and the world still believe in the full faith and credit of the U.S.

Interest rates are going down on U.S. debt not up.

The other telling thing is where were these rating agencies when the republicans were saying deficits did not matter?

Just like when S&P said Enron was AAA, the are full of it

[Poll_Blind]

7. All good points and I'm hoping you're right. I can't even fathom how Monday will turn out, though.

PB

[still_one]

8. This should have been already factored in. For months they have been talking about it, and analysts

have been telling people to get out of U.S. treasuries and debt. The people in the bond market obviously have more faith in the debt of the U.S. then the analysts

The stock market may drop using this as an excuse, but the U.S. treasuries won't, and interest rates will NOT go up. That is entirely the opposite effect if people thought the U.S. would not pay back the debt.

[still_one]

5. Where were they during the reagan administration when this whole circus started, or better you when

bush was starting wars and decreasing taxes for the wealthy

Funny how S&P now decides to become responsible. Where were they during the financial collapse when they didn't predict sqwat

[bluestateguy]

3. Georgetown Cocktail Party media analysis returns!

Stunningly ignorant.

[ClarkUSA]

4. Yes, let's believe the newly minted Frank Luntz talking points from a Republican strategist.

By weekend's end, they'll be accepted wisdom here, I'm sure.

[bigdarryl]

9. this has no effect on the 2012 election as long as there are JOBS being created he will be fine