It's the Tea Party's fault?

[The King]

I am not a Tea Party fan....I don't like uncompromising people, and they fall into that catagory...like many others.

Having said that, the Tea Party is being blamed for the impass that lead to the debt ceiling crisis....and the subsequent credit rating downgrade.

The only problem is, they didn't vote for the recent compromise and yet it still passed. If it was still able to pass without their support, how is this their fault..

Interesting article on who voted NO...

http://www.politico.com/news/stories/0811/60454.html

[Rod38um]

Ironically, passing the increase is the bulk of the reason that S&P downgraded us. Had we followed the Tea Party's advice and not passed it, it would have forced us to cut spending. That simple act is seen as pro-active and sets limits on future spending that would have been more in line with our revenue. The downgrade would not have happened. The Chinese agency that downgraded us did so immediately after the limit was raised and they cited the same reasons......... our inability to get our financial house in order.

I like that the Tea party wont compromise on the spending issues. A compromise means more spending beyond our means. Its time to stop compromising and get serious about our future.

[ohiomike]

I have to agree Rod. Its time to stop the insanity.

[Cheech]

Ironically, passing the increase is the bulk of the reason that S&P downgraded us. Had we followed the Tea Party's advice and not passed it, it would have forced us to cut spending. That simple act is seen as pro-active and sets limits on future spending that would have been more in line with our revenue. The downgrade would not have happened. The Chinese agency that downgraded us did so immediately after the limit was raised and they cited the same reasons......... our inability to get our financial house in order.

I like that the Tea party wont compromise on the spending issues. A compromise means more spending beyond our means. Its time to stop compromising and get serious about our future.

This is actually one example of macroeconomics that actually can apply on a personal level. First off, before you read all this and start attacking strawmen, I'm simply talking about cash flow and dollars and cents, not where or to whom that cash is flowing. So, say you as a person played a little too hard and heavy on the credit cards, and racked up a sizable debt. Since your earned income is already allocated, a portion of which to pay down said debt, in your budget analysis you decide that you need an additional line of credit to keep you afloat as you try to work through this. You go to the bank, and the bank tells you that you can borrow more cash, however because your debt is above a certain level we consider you more of a credit risk.

Which of these options would you, personally, choose?

• Continue to borrow money at the downgraded credit risk, while trying to get the debt load down, or
  
• Reject the loan and immediately cease having enough money to pay creditors, putting most if not all of your sizable debts in default and triggering a massive credit downgrade and run on your assets?
  

[ohiomike]

http://www.youtube.com/embed/-McpNtHet3w

When the street gets it and most of America doesnt, there is a real friggin problem in this country.

This country needs some REAL Rick James bitch slappin and I mean now. Then again, most Americans know who the cast from this years Big Brother Season 201 as opposed to who Tim Geitner, Ben Bernake are and what they have done.

[accel_is_my_drug]

I am not a Tea Party fan....

http://www.politico.com/news/stories/0811/60454.html

Every time I see your B King picture in your sig, I have slivers of regret over my buying a FZ1.......... so much want.....

[Rod38um]

• Reject the loan and immediately cease having enough money to pay creditors, putting most if not all of your sizable debts in default and triggering a massive credit downgrade and run on your assets?
  

I understand what you're trying to say..... however, this option was not that black and white. We still would have had more than enough revenue to pay our debt obligation. The cuts that not raising the ceiling would have required would have been the choice of the president. To avoid a world economic collapse it would have been wise to pay the debt and make the cuts to entitlements. The big worry on the right was that he may do the opposite (pay the entitlements and default on the debt) and collapse the world economy, especially ours. The Tea Party's point was that there was a viable option. The cuts could be made..... its just that nobody wants to actually make them. Politicians know how to get re-elected by spending money.... none of them are sure it works as well by cutting back on what people now believe they are owed........

A sad day is coming, I've seen the numbers and people can cry all they want about foreign aid, military, etc. etc...... but there is no way around cutting entitlements. They are the big pieces of the pie. It doesn't matter how we got here, who spent the most....... this is where we are and something has to be done. We have much harder days ahead........ there is just no way around it.....