Monday, August 8, 2011

Mitt Romney: From "Malaise" to Meltdown

With Obama out on the golf circuit over the last few days since the U.S. S&P downgrade, It's comforting to know that at least one potential Presidential candidate has a SUCCESSFUL history as a governor with these types of agencies,

The following is a press release from Mitt Romney's website:
“When I was governor, S&P rewarded Massachusetts with a credit rating upgrade for our sound fiscal management and the underlying strength of our economy. That didn’t happen by accident. The president’s failure to put the nation’s fiscal and economic house in order has caused a massive loss of confidence that resulted in an embarrassing downgrade. In the Carter era, it was called ‘malaise.’ Under President Obama, it’s called meltdown.” --Mitt Romney

Under President Obama, The United States Suffered An Unprecedented Downgrade Of Its AAA Credit Rating From Standard & Poor’s:

Standard & Poor’s Downgraded America’s Credit Rating To AA+ On Friday, A Move That Threatens To Raise Public And Private Borrowing Costs. “The United States lost its top-tier AAA credit rating from Standard & Poor's on Friday in an unprecedented blow to the world's largest economy in the wake of a political battle that took the country to the brink of default. S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government's budget deficit and rising debt burden. The action is likely to eventually raise borrowing costs for the American government, companies and consumers.” (Walter Brandimarte and Daniel Bases, “United States Loses Prized AAA Credit Rating From S&P,” Reuters, 8/6/11)
  • “The Move Reflects The Deterioration In The Global Economic Standing Of The United States, Which Has Had A AAA Credit Rating From S&P Since 1941…” (Walter Brandimarte and Daniel Bases, “United States Loses Prized AAA Credit Rating From S&P,” Reuters, 8/6/11)
  • “Treasury Bonds, Once Indisputably Seen As The Safest Security In The World, Are Now Rated Lower Than Bonds Issued By Countries Such As Britain, Germany, France Or Canada.” (Walter Brandimarte and Daniel Bases, “United States Loses Prized AAA Credit Rating From S&P,” Reuters, 8/6/11)
In April, Treasury Secretary Tim Geithner Said There Was “No Risk” That The United States Would Lose Its Triple-A Credit Rating. QUESTION: “Is there a risk that the United States could lose its AAA credit rating, yes or no?” GEITHNER: “No risk of that. … No risk.” … QUESTION: “So Standard and Poor’s is wrong, the United States will keep its AAA credit rating?” GEITHNER: “Absolutely.” (Fox Business Network, 4/19/11)

Additional Downgrades May Follow If Economic Growth Fails To Materialize And Spending Isn’t Brought Under Control. “One day after lowering the nation’s platinum triple-A credit rating, Standard & Poor’s analysts warned Saturday that the U.S. government could face a second downgrade if the economy continues to struggle and the government fails to make the cuts outlined in the debt ceiling agreement. The ratings agency on Friday downgraded the nation to AA+ for the first time in history, saying partisanship in Washington is preventing dramatic deficit reduction.” (Josh Boak, “S&P Warns Of A Second Downgrade,” Politico, 8/6/11)

Under Governor Romney, Massachusetts Received Credit Rating Upgrades From Both Standard & Poor’s And Fitch Ratings:

In March 2005, Standard & Poor’s Upgraded Massachusetts’ General Obligation Bond Rating To “AA,” Noting The State Was “Again Producing Jobs And Reducing Already Historically Low Unemployment.” “In many ways, Massachusetts is emerging from the downturn in good shape. … In recognition of the improvement, Standard & Poor's in March upgraded the state's bond rating to AA, the highest ranking the state has enjoyed since the late 1980s. … ‘An economy that is deep and diverse is again producing jobs and reducing already historically low unemployment,’ Standard & Poor's wrote in its upgrade of the state's bond rating.” (Charles Stein, “State Seeing End To Fiscal Downturn,” The Boston Globe, 6/27/05)
  • “This Is The State's First Ratings Upgrade Since January 2000, When Moody's Investors Service Raised The State's Credit Rating From ‘Aa3’ To ‘Aa2.’” (Office of the Governor, Press Release, 3/15/05)
In July 2005, Fitch Ratings Upgraded Massachusetts’ General Obligation Bond Rating To “AA,” Citing The State’s “Prudent Fiscal Management.” “Fitch Ratings upgrades the rating of $14.4 billion Commonwealth of Massachusetts full faith and credit general obligation (GO) bonds to 'AA' from 'AA-'. The upgrade reflects the commonwealth's economic recovery, enabling surplus operations and the rebuilding of reserves to strong levels. Prudent financial management through the recent downturn has positioned Massachusetts well.” (Fitch Ratings, Press Release, 7/8/05)
  • “The Commonwealth Snared Its First Credit Upgrade From Fitch Ratings Since 1998 On Friday When The Rating Agency … [Cited] How Well Massachusetts Weathered The Economic Downturn That Began In 2001.” (Helen Chang, “Bay State To Debut New Credit,” The Bond Buyer, 7/11/05)
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Anonymous said...

More and more Romney is looking like the candidate we need to win in 2012!!!!!!

Go Romney! !!!!!!

Anonymous said...

Is there anyone on this forum who doesn't know at least one person who has lost their job and/or their house? I know several people who have lost jobs and businesses. I know even more people who have lost their homes.

This recession is widespread enough that I believe almost all voters realize just how difficult this economy is and what an uphill battle it will be to restore the economy to health.

We need someone who understands the economy. Go Mitt!!