Tim Geithner, just a few months ago:
Treasury Secretary Tim Geithner said Tuesday there is “no risk” the U.S. will lose its top credit rating amid a new analysis that revised its outlook on American debt to “negative.”
Geithner took to the airwaves of financial news networks to push back against a report Monday by Standard & Poor’s that lowered its outlook on U.S. debt to “negative,” reflecting political uncertainty over whether lawmakers will reach an agreement to address long-term debt.
There is no chance that the U.S. will lose its top credit rating, Geithner said, forcefully disputing the notion that S&P or other ratings services might downgrade U.S. bonds from their current AAA rating.
A cornerstone of the global financial system was shaken Friday when officials at ratings firm Standard & Poor’s said U.S. Treasury debt no longer deserved to be considered among the safest investments in the world.
S&P removed for the first time the triple-A rating the U.S. has held for 70 years, saying the budget deal recently brokered in Washington didn’t do enough to address the gloomy long-term picture for America’s finances.
I don’t see how the Democrats will blame the Tea Party for this, since S&P’s complaint is we didn’t do enough of what the Tea Party wanted, but I’m sure they will find a way.
(Via Instapundit.)
UPDATE: Well, now we know how they will blame Republicans: just lie. I heard on NPR this morning that the reason S&P was downgrading our debt was concern over our dysfunctional legislative process, or something like that.
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