Sunday, August 7, 2011

S&P Decision Maker Explains Why He Lowered US Credit Rating

John Chambers of Standard & Poor's discusses why the decision was made to lower US credit rating.



I especially think this statement by Chambers when asked what was behind his decision is quite telling:
Well, I think there were two reasons. The first reason is the one that you have outlined, being our view of the political settings in the United States have been altered. We have taken them down a notch, the rating down a notch. The political brinkmanship we saw over raising the debt ceiling was something that was really beyond our expectations, the U.S. government getting to the last day before they had cash management problems.
And to further pound this point home Anderson Cooper asked him again:
COOPER: So it’s interesting. You’re saying without a doubt, the recent debate, the recent roadblocks in Congress, the tenor, the timing, the tone of the debate had a major impact on this.

CHAMBERS: Yes.
With Chambers' comments in mind I just have one question. Who was it that installed the roadblocks and set set the tenor and tone of the debates again?

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