Update: The Dow dove 521 points today – the 3rd time in the last five days that the market has lost 500+ points. Thanks to Washington D.C. we can all grab our ankles now – this is the debt deal rally.
I remember watching the 2007, 2008 budget debates in California as the Republicans were self congratulating over passing a train-wreck budget because it didn’t raise taxes.
Then there was the Debt Ceiling Deal recently passed at the Federal Level – it is a deal that Jerry Brown would love. No spending cuts, lots of smoke and mirrors and was rewarded by Standard and Poors with an unprecedented downgrade of the USA’s credit rating.
What was the response from the Left? Arrest the leaders of S&P, it’s all Bush’s fault! What was the response from the Right? See – we didn’t raise taxes – you should love us for this.
Like someone with battered woman syndrome or Stockholm syndrome – the Republican leadership drinks the Kool-Aid again.
What was the response of real America?
62% believe spending cuts mean slowing the pace of spending. So does S&P and Moody’s who are ready to downgrade the USA again at the end of the year.
But the GOP leadership are still chugging the Kool-Aid.
67% favor spending cuts in all Government Programs. Not the GOP leadership.
Only three members of California’s Republican delegation agreed with 67% of America.
Yet the idiots in the media and in the halls of Government are acting like S&P and Moody’s are the bad guys – heck S&P and Moody’s were the nimrods that climbed in bed with the Obama bailouts and his government takeovers of several large US companies. Moody’s rated Lehman Brothers 4 stars the day before they collapsed.
If S&P, Moody’s and America can figure it out – why can’t the GOP leadership? If S&P and Moody’s all the sudden have recovered their integrity and 67% of America says cut spending – meaning a substantial number of Obama’s voters from 2008 are saying this too, it really does suggest that the GOP leadership are intent on snatching defeat from the jaws of victory again.
I close with a quote from Financial Guru Dave Ramsey:
“If the US Government was a family, they would be making $58,000 a year, spending $75,000 a year, & they’re $327,000 in credit card debt. They are currently proposing REALLY BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand.”
From this blogger to GOP leadership – STEP AWAY FROM THE KOOL-AID.