Warnings On Debt Ceiling Debate Should Have Been Heeded #p2 #tcot

from http://progressillinois.com/quick-hits/content/2011/08/08/warnings-debt-ceiling-debate-should-have-been-heeded?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+ProgressIllinois+%28Progress+Illinois%29

U.S. Rep. Michele Bachmann (R-MN) called President Barack Obama's warnings about Congress failing to raise the debt ceiling a "scare tactic." Sarah Palin urged fellow conservative Tea Party Republicans to "reload" rather than meet Obama half way on raising the debt ceiling.

Mitt Romney insisted that a controversial Balanced Budget Amendment be part of any deal.

Today we can see why Obama urged Congress to act and raise the debt ceiling as was done 69 other times since 1962. Global financial markets are in turmoil, Wall Street is poised for another down day, with the Dow already down more than 330 points at the time of this posting, and average Americans are worried about what it all means to their bottom line.

Chaos theory reigned for nearly two months in Washington, D.C. when the two parties should have been focused on helping the President create jobs and shrink the nation's 9.1 percent unemployment rate; causing Sen. John Kerry (D-Mass) and senior White House advisor David Axelrod to place the blame of the Standard & Poor's downgrade squarely on the shoulders of Tea Party Republicans. This GOP-lead chaos is not a viable plan for restoring public confidence in anything so the economy might get worse before it gets better -- for all of us. How? Some experts say it could potentially be felt in higher interest rates on credit cards, mortgages and business lending.

Let's hope Congress can get its act together and President Obama can shape a clear path toward economic recovery that includes serious job growth. Not only is America watching, the whole world is too.

UPDATE (10:15 a.m.): The President is scheduled to deliver a statement to the press at noon and is expected to discuss the market's reaction to the downgrade by Standard & Poor's. The credit rating agency continued making changes this morning by downgrading the debts of Fannie Mae and Freddie Mac. "The downgrades of Fannie Mae and Freddie Mac reflect on their direct reliance on on the U.S. government," S & P's explained in a statement.