Republicans, Democrats trade blame for S&P rating downgrade

Republicans, Democrats trade blame for S&P rating downgrade

Republicans, Democrats trade blame for S&P rating downgrade

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Associated Press

Posted on August 6, 2011 at 7:02 AM

Updated Saturday, Aug 6 at 9:14 AM

WASHINGTON (AP) — One of the world's three major credit rating agencies says there's too big a gulf between Republicans and Democrats when it comes to dealing with debt, so it's giving the government a downgrade. Standard & Poor's has bumped the U.S. credit rating down a notch to AA+ from the top status it's held since 1917.

It's the country's first downgrade ever.

Republicans and Democrats are blaming each other.

House Speaker John Boehner says he hopes the downgrade will serve as a wake-up call to the Democratic Party. The Ohio Republican says it's clear that "reforming and preserving our entitlement programs is the key to long-term fiscal sustainability."

Senate Majority Leader Harry Reid says S&P's action shows that the correct path is the Democrats' approach, a mix of raising taxes and budget cuts.

One senator, Republican Mark Kirk of Illinois, called for the president to bring Congress back from its August recess to try and address the issues raised by S&P's report.

Sound:

%(at)AP Links

021-a-14-(By Diane Swonk, chief economist, Mesirow (MEHZ'-ih-roh) Financial, in AP interview)-"on their part"-Economist Diane Swonk, at Mesirow Financial, says it's possible that other ratings agencies will also downgrade the U.S. debt. (6 Aug 2011)

<<CUT *021 (08/06/11)>> 00:14 "on their part"

025-a-09-(Jeff Thredgold, economic futurist, Thredgold Economic Associates, in AP interview)-"it's probably earned"-Economic futurist Jeff Thredgold says he is not surprised that Standard and Poor's has downgraded the U.S. credit rating to AA-plus. (6 Aug 2011)

<<CUT *025 (08/06/11)>> 00:09 "it's probably earned"

026-q-16-(Jeff Thredgold, economic futurist, Thredgold Economic Associates, in AP interview)-"higher mortgage rates"-Economic futurist Jeff Thredgold was asked what the downgrade of the U.S. credit rating will mean for the average American. (6 Aug 2011)

<<CUT *026 (08/06/11)>> 00:16 "higher mortgage rates"

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