Full Text Campaign Buzz August 29, 2012: Rep. Paul Ryan’s Speech at the 2012 Republican National Convention — Thrills Republicans, Telling Them ‘Let’s Get This Done’

CAMPAIGN 2012

CAMPAIGN BUZZ 2012

THE HEADLINES….

IN FOCUS: 2012 REPUBLICAN NATIONAL CONVENTION

Paul Ryan Thrills Republicans, Telling Them ‘Let’s Get This Done’

Source: ABC News Radio, 8-29-12

BRENDAN SMIALOWSKI/AFP/GettyImages

Entering the Republican National Convention to ebullient cheers, Rep. Paul Ryan stepped confidently into the national spotlight as his party’s vice presidential nominee and promised that he and Mitt Romney would tackle the country’s most difficult problems to fix the economy and create millions of new jobs.

The 42-year-old Ryan, speaking at the end of a long day of speeches and video presentations by the party’s graying old guard, cut a dramatically youthful figure and vowed to heed the “the calling of my generation.”

“Whatever your political party, let’s come together for the sake of our country. Join Mitt Romney and me. Let’s give this effort everything we have. Let’s see this through all the way. Let’s get this done,” Ryan declared….READ MORE

PAUL RYAN DELIVERS REMARKS TO THE REPUBLICAN NATIONAL CONVENTION

Source: Mitt Romney Press, 8-29-12

Paul Ryan today delivered remarks to the Republican National Convention in Tampa, Florida. The following remarks were prepared for delivery:

Mr. Chairman, delegates, and fellow citizens: I am honored by the support of this convention for vice president of the United States.

I accept the duty to help lead our nation out of a jobs crisis and back to prosperity – and I know we can do this.

I accept the calling of my generation to give our children the America that was given to us, with opportunity for the young and security for the old – and I know that we are ready.

Our nominee is sure ready. His whole life has prepared him for this moment – to meet serious challenges in a serious way, without excuses and idle words.  After four years of getting the run-around, America needs a turnaround, and the man for the job is Governor Mitt Romney.

I’m the newcomer to the campaign, so let me share a first impression.  I have never seen opponents so silent about their record, and so desperate to keep their power.

They’ve run out of ideas.  Their moment came and went. Fear and division are all they’ve got left.

With all their attack ads, the president is just throwing away money – and he’s pretty experienced at that.  You see, some people can’t be dragged down by the usual cheap tactics, because their ability, character, and plain decency are so obvious – and ladies and gentlemen, that is Mitt Romney.

For my part, your nomination is an unexpected turn.  It certainly came as news to my family, and I’d like you to meet them: My wife Janna, our daughter Liza, and our boys Charlie and Sam.

The kids are happy to see their grandma, who lives in Florida.  There she is – my Mom, Betty.

My Dad, a small-town lawyer, was also named Paul.  Until we lost him when I was 16, he was a gentle presence in my life.  I like to think he’d be proud of me and my sister and brothers, because I’m sure proud of him and of where I come from, Janesville, Wisconsin.

I live on the same block where I grew up.  We belong to the same parish where I was baptized.  Janesville is that kind of place.

The people of Wisconsin have been good to me.  I’ve tried to live up to their trust.  And now I ask those hardworking men and women, and millions like them across America, to join our cause and get this country working again.

When Governor Romney asked me to join the ticket, I said, “Let’s get this done” – and that is exactly, what we’re going to do.

President Barack Obama came to office during an economic crisis, as he has reminded us a time or two.  Those were very tough days, and any fair measure of his record has to take that into account.  My home state voted for President Obama. When he talked about change, many people liked the sound of it, especially in Janesville, where we were about to lose a major factory.

A lot of guys I went to high school with worked at that GM plant. Right there at that plant, candidate Obama said: “I believe that if our government is there to support you … this plant will be here for another hundred years.”  That’s what he said in 2008.

Well, as it turned out, that plant didn’t last another year.  It is locked up and empty to this day.  And that’s how it is in so many towns today, where the recovery that was promised is nowhere in sight.

Right now, 23 million men and women are struggling to find work.  Twenty-three million people, unemployed or underemployed.  Nearly one in six Americans is living in poverty.  Millions of young Americans have graduated from college during the Obama presidency, ready to use their gifts and get moving in life.  Half of them can’t find the work they studied for, or any work at all.

So here’s the question: Without a change in leadership, why would the next four years be any different from the last four years?

The first troubling sign came with the stimulus.  It was President Obama’s first and best shot at fixing the economy, at a time when he got everything he wanted under one-party rule.  It cost $831 billion – the largest one-time expenditure ever by our federal government.

It went to companies like Solyndra, with their gold-plated connections, subsidized jobs, and make-believe markets. The stimulus was a case of political patronage, corporate welfare, and cronyism at their worst. You, the working men and women of this country, were cut out of the deal.

What did the taxpayers get out of the Obama stimulus?  More debt.  That money wasn’t just spent and wasted – it was borrowed, spent, and wasted.

Maybe the greatest waste of all was time. Here we were, faced with a massive job crisis – so deep that if everyone out of work stood in single file, that unemployment line would stretch the length of the entire American continent.  You would think that any president, whatever his party, would make job creation, and nothing else, his first order of economic business.

But this president didn’t do that.  Instead, we got a long, divisive, all-or-nothing attempt to put the federal government in charge of health care.

Obamacare comes to more than two thousand pages of rules, mandates, taxes, fees, and fines that have no place in a free country.

The president has declared that the debate over government-controlled health care is over.  That will come as news to the millions of Americans who will elect Mitt Romney so we can repeal Obamacare.

And the biggest, coldest power play of all in Obamacare came at the expense of the elderly.

You see, even with all the hidden taxes to pay for the health care takeover, even with new taxes on nearly a million small businesses, the planners in Washington still didn’t have enough money.  They needed more.  They needed hundreds of billions more.  So, they just took it all away from Medicare.  Seven hundred and sixteen billion dollars, funneled out of Medicare by President Obama.  An obligation we have to our parents and grandparents is being sacrificed, all to pay for a new entitlement we didn’t even ask for.  The greatest threat to Medicare is Obamacare, and we’re going to stop it.

In Congress, when they take out the heavy books and wall charts about Medicare, my thoughts go back to a house on Garfield Street in Janesville.  My wonderful grandma, Janet, had Alzheimer’s and moved in with Mom and me.  Though she felt lost at times, we did all the little things that made her feel loved.

We had help from Medicare, and it was there, just like it’s there for my Mom today.  Medicare is a promise, and we will honor it.  A Romney-Ryan administration will protect and strengthen Medicare, for my Mom’s generation, for my generation, and for my kids and yours.

So our opponents can consider themselves on notice.  In this election, on this issue, the usual posturing on the Left isn’t going to work.  Mitt Romney and I know the difference between protecting a program, and raiding it.  Ladies and gentlemen, our nation needs this debate.  We want this debate.  We will win this debate.

Obamacare, as much as anything else, explains why a presidency that began with such anticipation now comes to such a disappointing close.

It began with a financial crisis; it ends with a job crisis.

It began with a housing crisis they alone didn’t cause; it ends with a housing crisis they didn’t correct.

It began with a perfect Triple-A credit rating for the United States; it ends with a downgraded America.

It all started off with stirring speeches, Greek columns, the thrill of something new.  Now all that’s left is a presidency adrift, surviving on slogans that already seem tired, grasping at a moment that has already passed, like a ship trying to sail on yesterday’s wind.

President Obama was asked not long ago to reflect on any mistakes he might have made.  He said, well, “I haven’t communicated enough.”  He said his job is to “tell a story to the American people” – as if that’s the whole problem here? He needs to talk more, and we need to be better listeners?

Ladies and gentlemen, these past four years we have suffered no shortage of words in the White House.  What’s missing is leadership in the White House.  And the story that Barack Obama does tell, forever shifting blame to the last administration, is getting old.  The man assumed office almost four years ago – isn’t it about time he assumed responsibility?

In this generation, a defining responsibility of government is to steer our nation clear of a debt crisis while there is still time.  Back in 2008, candidate Obama called a $10 trillion national debt “unpatriotic” – serious talk from what looked to be a serious reformer.

Yet by his own decisions, President Obama has added more debt than any other president before him, and more than all the troubled governments of Europe combined.  One president, one term, $5 trillion in new debt.

He created a bipartisan debt commission. They came back with an urgent report.  He thanked them, sent them on their way, and then did exactly nothing.

Republicans stepped up with good-faith reforms and solutions equal to the problems.  How did the president respond?  By doing nothing – nothing except to dodge and demagogue the issue.

So here we are, $16 trillion in debt and still he does nothing.  In Europe, massive debts have put entire governments at risk of collapse, and still he does nothing. And all we have heard from this president and his team are attacks on anyone who dares to point out the obvious.

They have no answer to this simple reality: We need to stop spending money we don’t have.

My Dad used to say to me: “Son.  You have a choice: You can be part of the problem, or you can be part of the solution.”  The present administration has made its choices.  And Mitt Romney and I have made ours: Before the math and the momentum overwhelm us all, we are going to solve this nation’s economic problems.

And I’m going to level with you: We don’t have that much time.  But if we are serious, and smart, and we lead, we can do this.

After four years of government trying to divide up the wealth, we will get America creating wealth again. With tax fairness and regulatory reform, we’ll put government back on the side of the men and women who create jobs, and the men and women who need jobs.

My Mom started a small business, and I’ve seen what it takes. Mom was 50 when my Dad died.  She got on a bus every weekday for years, and rode 40 miles each morning to Madison.  She earned a new degree and learned new skills to start her small business.  It wasn’t just a new livelihood.  It was a new life.  And it transformed my Mom from a widow in grief to a small businesswoman whose happiness wasn’t just in the past.  Her work gave her hope.  It made our family proud.  And to this day, my Mom is my role model.

Behind every small business, there’s a story worth knowing.  All the corner shops in our towns and cities, the restaurants, cleaners, gyms, hair salons, hardware stores – these didn’t come out of nowhere.  A lot of heart goes into each one.  And if small businesspeople say they made it on their own, all they are saying is that nobody else worked seven days a week in their place.  Nobody showed up in their place to open the door at five in the morning.  Nobody did their thinking, and worrying, and sweating for them.  After all that work, and in a bad economy, it sure doesn’t help to hear from their president that government gets the credit.  What they deserve to hear is the truth: Yes, you did build that.

We have a plan for a stronger middle class, with the goal of generating 12 million new jobs over the next four years.

In a clean break from the Obama years, and frankly from the years before this president, we will keep federal spending at 20 percent of GDP, or less.  That is enough.  The choice is whether to put hard limits on economic growth, or hard limits on the size of government, and we choose to limit government.

I learned a good deal about economics, and about America, from the author of the Reagan tax reforms – the great Jack Kemp.  What gave Jack that incredible enthusiasm was his belief in the possibilities of free people, in the power of free enterprise and strong communities to overcome poverty and despair.   We need that same optimism right now.

And in our dealings with other nations, a Romney-Ryan administration will speak with confidence and clarity.  Wherever men and women rise up for their own freedom, they will know that the American president is on their side.  Instead of managing American decline, leaving allies to doubt us and adversaries to test us, we will act in the conviction that the United States is still the greatest force for peace and liberty that this world has ever known.

President Obama is the kind of politician who puts promises on the record, and then calls that the record.  But we are four years into this presidency. The issue is not the economy as Barack Obama inherited it, not the economy as he envisions it, but this economy as we are living it.

College graduates should not have to live out their 20s in their childhood bedrooms, staring up at fading Obama posters and wondering when they can move out and get going with life.  Everyone who feels stuck in the Obama economy is right to focus on the here and now.  And I hope you understand this too, if you’re feeling left out or passed by: You have not failed, your leaders have failed you.

None of us have to settle for the best this administration offers – a dull, adventureless journey from one entitlement to the next, a government-planned life, a country where everything is free but us.

Listen to the way we’re spoken to already, as if everyone is stuck in some class or station in life, victims of circumstances beyond our control, with government there to help us cope with our fate.

It’s the exact opposite of everything I learned growing up in Wisconsin, or at college in Ohio.  When I was waiting tables, washing dishes, or mowing lawns for money, I never thought of myself as stuck in some station in life.  I was on my own path, my own journey, an American journey where I could think for myself, decide for myself, define happiness for myself.  That’s what we do in this country.  That’s the American Dream.  That’s freedom, and I’ll take it any day over the supervision and sanctimony of the central planners.

By themselves, the failures of one administration are not a mandate for a new administration.  A challenger must stand on his own merits.  He must be ready and worthy to serve in the office of president.

We’re a full generation apart, Governor Romney and I.  And, in some ways, we’re a little different.  There are the songs on his iPod, which I’ve heard on the campaign bus and on many hotel elevators. He actually urged me to play some of these songs at campaign rallies.  I said, I hope it’s not a deal-breaker Mitt, but my playlist starts with AC/DC, and ends with Zeppelin.

A generation apart. That makes us different, but not in any of the things that matter.  Mitt Romney and I both grew up in the heartland, and we know what places like Wisconsin and Michigan look like when times are good, when people are working, when families are doing more than just getting by.  And we both know it can be that way again.

We’ve had very different careers – mine mainly in public service, his mostly in the private sector. He helped start businesses and turn around failing ones. By the way, being successful in business – that’s a good thing.

Mitt has not only succeeded, but succeeded where others could not.  He turned around the Olympics at a time when a great institution was collapsing under the weight of bad management, overspending, and corruption – sounds familiar, doesn’t it?

He was the Republican governor of a state where almost nine in ten legislators are Democrats, and yet he balanced the budget without raising taxes. Unemployment went down, household incomes went up, and Massachusetts, under Mitt Romney, saw its credit rating upgraded.

Mitt and I also go to different churches.  But in any church, the best kind of preaching is done by example.  And I’ve been watching that example.  The man who will accept your nomination tomorrow is prayerful and faithful and honorable. Not only a defender of marriage, he offers an example of marriage at its best. Not only a fine businessman, he’s a fine man, worthy of leading this optimistic and good-hearted country.

Our different faiths come together in the same moral creed.  We believe that in every life there is goodness; for every person, there is hope.  Each one of us was made for a reason, bearing the image and likeness of the Lord of Life.

We have responsibilities, one to another – we do not each face the world alone.  And the greatest of all responsibilities, is that of the strong to protect the weak.  The truest measure of any society is how it treats those who cannot defend or care for themselves.

Each of these great moral ideas is essential to democratic government – to the rule of law, to life in a humane and decent society.  They are the moral creed of our country, as powerful in our time, as on the day of America’s founding.  They are self-evident and unchanging, and sometimes, even presidents need reminding, that our rights come from nature and God, not from government.

The founding generation secured those rights for us, and in every generation since, the best among us have defended our freedoms.  They are protecting us right now.  We honor them and all our veterans, and we thank them.

The right that makes all the difference now, is the right to choose our own leaders.  And you are entitled to the clearest possible choice, because the time for choosing is drawing near.  So here is our pledge.

We will not duck the tough issues, we will lead.

We will not spend four years blaming others, we will take responsibility.

We will not try to replace our founding principles, we will reapply our founding principles.

The work ahead will be hard.  These times demand the best of us – all of us, but we can do this.  Together, we can do this.

We can get this country working again.  We can get this economy growing again.  We can make the safety net safe again.  We can do this.

Whatever your political party, let’s come together for the sake of our country.  Join Mitt Romney and me.  Let’s give this effort everything we have.  Let’s see this through all the way.  Let’s get this done.

Thank you, and God bless.

 

WHAT THEY’RE SAYING: PAUL RYAN “WOWS CROWD” AT REPUBLICAN CONVENTION

Source: Mitt Romney Press, 8-29-12

The Associated Press: “Congressman Paul Ryan Seizes Spotlight, Wows Crowd At Republican National Convention” (The Associated Press, 8/29/12)

The New York Times: “Ryan Calls For A U.S. Turnaround, Led By Romney” (The New York Times, 8/29/12)

ABC News: “Paul Ryan Thrills Republicans Telling Them, ‘Let’s Get This Done’” (ABC News, 8/29/12)

ABC News’ George Stephanopoulos: “Energetic Delivery By Paul Ryan. It Was A Broad Indictment Of President Obama’s Economic Policy.” (ABC, 8/29/12)

CNN’s David Gergen: “A Speech About Big Ideas. … Throwing Down The Gauntlet …” GERGEN: “This was a speech about big ideas. And we haven’t had that very much in this campaign. That’s what I thought was helpful about it. Throwing down the gauntlet, he’s inviting major conversation in the debates ahead about very conflicting views of what government should be.” (CNN, 8/29/12)

ABC News’ Jonathan Karl: “As Far As This Crowd Is Concerned, An Absolute Homerun.” (ABC News, 8/29/12)

Fox News’ Brit Hume: “The Speech Was Interesting, It Was Compelling.” (Fox News, 8/29/12)

The New York Times’ Jeff Zeleny: “A Pitbull With A Smile.” “RYAN: A pitbull with a smile. His upbeat tone raises the question of how challenging it might be for Democrats to brand him as extreme.” (Twitter.com, 8/29/12)

The Washington Post’s Charles Krauthammer: “Bold, Very Strong, And Very Large…” KRAUTHAMMER: “I thought the speech by Ryan was bold, very strong, and very large, in the sense that he went way beyond just the attack, which were extremely effective.” (Fox News, 8/29/12)

The Wall Street Journal’s Neil King: “Ryan Is Treating This Like A Teaching Moment, And Doing It Well.” (Twitter.com, 8/29/12)

The Washington Examiner’s Conn Carroll: “Ryan Is Killing It.” (Twitter.com, 8/29/12)

Roll Call’s Steven T. Dennis: “Indictment Of Barack Obama” “Paul Ryan’s speech is a flat-out, blistering indictment of Barack Obama.” (Twitter.com, 8/29/12)

NBC’s Alex Moe: “Big Applause For Ryan Comes On Medicare…” “Big applause for Ryan comes on Medicare (says often on the trail): nation needs this debate, we want this debate, we will win this debate.” (Twitter.com, 8/29/12)

Politico’s Glenn Thrush: “Sturdy, Valuable Speech By Ryan…” “Sturdy, valuable speech by Ryan — very lucid articulation of the argument against Obama. Cutting without being mean.” (Twitter.com, 8/26/12)

Politico’s Jonathan Martin: “One Of Best Strokes Of Convention: ‘Fading Obama Posters’” (Twitter.com, 8/29/12)

Politico’s Maggie Haberman: “This Speech Is Hitting Basically Every Note And Mark…” “This speech is hitting basically every note and mark it needs to, as is Ryan in his delivery.” (Twitter.com, 8/29/12)

Chicago Sun-Times’ Lynn Sweet: “Paul Ryan: A Stem Winder” (Twitter.com, 8/29/12)

Pittsburgh Tribune-Review’s Salena Zito: “Ryan Drew The Line In The Sand Tonight…” (Twitter.com, 8/29/12)

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Political Buzz US Economy in Crisis August 7, 2011: Asian Markets Sink — Reactions to S&P, Standand & Poor’s Downgrade of US Credit Rating from AAA to AA+

POLITICAL BUZZ

By Bonnie K. Goodman

Ms. Goodman is the Editor of History Musings. She has a BA in History & Art History & a Masters in Library and Information Studies from McGill University, and has done graduate work in history at Concordia University.

OBAMA PRESIDENCY & THE 112TH CONGRESS:

THE HEADLINES….

 

G7 says committed to ensure liquidity, support markets: The Group of Seven nations is committed to taking coordinated action to ensure liquidity and to support financial market functioning, financial stability and economic growth, G7 finance ministers and central bank governors said in a statement…. – Reuters, 8-7-11

“These actions, together with continuing fiscal discipline efforts will enable long-term fiscal sustainability. No change in fundamentals warrants the recent financial tensions faced by Spain and Italy. We welcome the additional policy measures announced by Italy and Spain to strengthen fiscal discipline and underpin the recovery in economic activity and job creation.” — G7 Statement

“It takes awhile. Our concerns are centered on the political side and on the fiscal side. It would take a stabilization of the debt as a share of the economy and eventual decline, and it would take, I think, more ability to reach consensus in Washington than what we’re observing now.” — John B. Chambers, the managing director of Standard & Poor’s

“Raising taxes is what ‘balanced plan’ means, that is plain to every American by now. The administration wants to raise taxes so they can permanently implant a larger level of spending. They have increased domestic discretionary spending 24 percent in two years. This is unthinkable. So we’ve got a problem — we’ve got to bring that spending down, not increase the burden on the private sector.” — Senator Jeff Sessions of Alabama, the top Republican on the Senate Budget Committee

“One has to find understandable their pessimism about our inability to come together on the most important issue facing our country, which is how do we create jobs. We need a balanced approach and the extremism, the Tea Party obstructionism here in Washington, is keeping us from restoring that balanced approach America has always used of investing in the future, investing in job creation, and also being fiscally responsible at the same time.” — Gov. Martin O’Malley of Maryland, the chairman of the Democratic Governors Association on the ABC program “This Week”

“Republicans are having to respond to this very, very strident group that is pulling them away and believes that compromise is a dirty word. That is a prescription for failure.” — David Axelrod, Obama’s longtime political adviser on the CBS program “Face the Nation”

“The Tea Party hasn’t destroyed Washington — Washington was destroyed before the Tea Party got there. The hope is that the Tea Party and middle-of-the-road people can find common ground to turn this country around before we become Greece. I hope we can.”
“People are not creating jobs in this country because they think Howard Dean is going to raise their taxes. If you want to create jobs, don’t raise anyone’s taxes. Try to lower spending like the Tea Party and other people up here want.” — Senator Lindsey Graham, Republican of South Carolina

“I think the Standard & Poor’s downgrade is a good thing because I think it underlines the fact that you cannot get out of this without raising revenues. You cannot get out of this without raising revenues. It is impossible, and the vast majority of the American people want us to raise revenues — particularly on all those gazillionaires the Republican tax cuts mostly benefit.” — Howard Dean, the former Vermont governor and former chairman of the Democratic National Committee

“Clearly, I’m not very surprised by this downgrade. We more or less saw this coming because we’re on the wrong fiscal path. We’ll find out tomorrow what kind of spike in rates we’re going to get. But, obviously, not only does it hurt the federal government in its ability to close the deficits, but it hurts people. You know, car loans, home loans, all these things are going to go up. And so, it’s because Washington has not gotten its fiscal house in order. To me, this is more vindications of our action.” — Representative Paul D. Ryan of Wisconsin, the Republican chairman of the House Budget Committee on “Fox News Sunday”

“I think it’s really — it’ll sound strange for me to say it — an outrageous move. The government can pay its debts. It’s legally obligated to do so. It’s got the wherewithal to do it. In a larger sense about the economy, I think the U.S. economy is in a perilous state. This recovery has been the worst from a severe recession since the Great Depression, but I am surprised S.& P. would play politics. The U.S. government can pay the interest and principle on the bonds.” — Steve Forbes, the chief executive of the company that publishes Forbes magazine and a former Republican presidential candidate on the CNN program “State of the Nation”

Candidates Give Obama an F for AA+ Rating: The Republican presidential candidates on Saturday seized on the first-ever downgrade of the nation’s credit rating as a new line of criticism against President Obama, suggesting that ultimate responsibility rested in the Oval Office even though the rating agency, Standard & Poor’s, cited the overall political gridlock in Washington as a major cause for its decision…. – NYT, 8-6-11

“It happened on your watch, Mr. President. You were AWOL. You were missing in action…. I’m calling on the president of the United States to come back to the White House, address the American people before the markets open on Monday and give us his positive plan for putting the ratings back up to the AAA rating…. Last night, we had our day of reckoning. Eventually it hits the fan…. “The responsibility is of those in Washington, D.C., who put the deal together. But the real problem in all of this is that President Obama has failed to give leadership on this issue.” Michele Bachmann, the Minnesota representative and Tea Party caucus leader

“What we should be talking about is downgrading Barack Obama from president of the United States.” — Former Gov. Tim Pawlenty of Minnesota campaigned in Grinnell on Saturday

    • At a glance: The US credit downgrade: Markets around the world are set to react Monday to the downgrade of the U.S. credit rating Friday. A look at the downgrade, why it happened and what it means:
      WHAT HAPPENED:
      Credit rating agency Standard & Poor’s lowered the U.S. government’s credit rating for the first time Friday, from the top AAA rating to AA+. That affects long-term debt, which means government securities that have terms of more than one year.
      WHY THE DEBT WAS DOWNGRADED:
      S&P blamed political deadlock in Washington that threatens to keep the country from dealing effectively with its debt.
      WHAT IT MEANS FOR THE GOVERNMENT:
      In theory, a lower credit rating should lead to higher interest rates for U.S. debt. Buyers of government securities can demand higher rates because the lower rating means they are taking on more risk. In reality, Treasury bonds will still be considered among the safest and most liquid investments in the world, and any rise in rates is likely to be muted…. – AP, 8-7-11
    • Asian stock markets sink after US credit downgrade: Asian stocks nose-dived Monday as the first-ever downgrade of the U.S. government’s credit rating jolted the global financial system, reinforcing fears of a rapid slowdown in economic growth.
      Oil prices extended recent sharp losses, trading below $84 a barrel on expectations that weaker global growth will crimp demand for crude. The dollar was lower against the yen and the euro.
      Among the major Asian markets, Hong Kong’s Hang Seng tumbled 4 percent to 20,100.20 and South Korea’s Kospi crumpled 6.7 percent to 1,814.100. Japan’s Nikkei 225 stock average dropped 2.5 percent to 9,067.88.
      Futures pointed to losses on Wall Street when it opens Monday. Dow futures were off 258 points, or 2.3 percent, at 11,144 and broader S&P 500 futures shed 28.8 points, or 2.4 percent, to 1,169.00.
      “It’s not Armaggedon, but it feels like it,” said Hong Kong-based analyst Francis Lun, adding that he foresees the territory’s Hang Seng index to sink below 19,000 — a decline of a further 5 percent — before making any kind of comeback…. – AP, 8-8-11
    • Asian stocks slide after US debt downgrade: Asian stocks fell on Monday after last week’s historic downgrade of the United States’ credit rating, which compounded concerns over the world’s biggest economy as well as the global outlook.
      The falls were echoed by big losses in oil while gold surged to another record as investors moved out of risky assets…. – AP, 8-8-11
    • Geithner says he will stay at Treasury: Timothy Geithner has told President Barack Obama that he will remain on the job as Treasury secretary, ending speculation he would leave the administration…. – AP, 8-7-11
    • U.S. Stock Futures Fall on S&P Downgrade: U.S. stock futures declined, following the biggest weekly drop in the Standard & Poor’s 500 Index since 2008, amid concern that a downgrade of the nation’s credit rating by S&P may worsen an economic slowdown.
      S&P 500 futures expiring in September declined 2.1 percent to 1,172.3 at 7:03 a.m. in Tokyo. Dow Jones Industrial Average futures lost 253 points, or 2.2 percent, to 11,149.
      The downgrade threatens to extend a rout in U.S. stocks that wiped out $1.94 trillion in market value and erased the S&P 500’s gain for the year. S&P lowered the U.S. long-term rating one level to AA+ after markets closed on Aug. 5 while keeping the outlook at “negative” as the ratings company becomes less confident Congress will end Bush-era tax cuts or tackle entitlements…. – Businessweek, 8-7-11

“This is a problem that has to be addressed by the full spectrum of political parties. You’ve got a position here where the debt is on a rising share if you measure it against GDP. The plan that has been put forward and we think will be adopted gets you part of the way there but it doesn’t get you all the way there. And we don’t see in the next few years a consensus forming that will get you the rest of the way.” — John Chambers, chairman of Standard & Poor’s sovereign debt committee

  • S&P’s Chambers Says U.S. Debt Problems Need Bipartisan Solution: U.S. lawmakers need to come together as they did for a 1980s overhaul of Social Security and compromise on the medium-term consolidation of the country’s fiscal position, said John Chambers, chairman of Standard & Poor’s sovereign debt committee…. – Bloomberg, 8-7-11
  • G7 gives first sign ready to battle crisis: Political and financial leaders gave their first sign of readiness to battle a debt crisis gone global when the European Central Bank signaled on Sunday it would start buying Italian and Spanish debt, a critical move to quell a bond rout that has rocked financial markets.
    The European Central Bank decision would be aimed at calming markets grown increasingly doubtful about Europe’s ability to deal with its debt issues, a strikingly parallel concern to that which led ratings agency Standard & Poor’s to knock U.S. debt down from “risk free” AAA status to AA-plus.
    Meanwhile, finance chiefs from Group of Seven industrial nations were to confer by telephone late on Sunday– and possibly issue a statement afterward — to try to soothe anxious investors after a week in which $2.5 trillion of market value was wiped out…. – Reuters, 8-7-11
  • Dollar Weakens to Record Versus Franc as S&P Lowers U.S. Rating: The dollar dropped to a record low against the Swiss franc and fell for a second day versus the yen after Standard & Poor’s downgrade of the U.S. added to concern the fiscal health of the world’s biggest economy is slipping.
    The greenback weakened against the euro before the Federal Reserve meets tomorrow on monetary policy after S&P cut the U.S. one level on Aug. 5. The euro also advanced after the European Central Bank signaled it’s ready to start buying Italian and Spanish bonds to curb the region’s debt crisis. The yen gained against most major peers as Asian shares slid for a fifth day, supporting demand for Japan’s currency as a refuge…. – Bloomberg, 8-8-11
  • U.S. 10-Year Treasury Yield Retraces Decline: Benchmark 10-year U.S. Treasury bonds retraced early losses Monday to rise above Friday’s closing levels, despite the unprecedented downgrade by Standard & Poor’s of its rating on U.S. government debt.
    Analysts said a pledge early Monday from the Group of Seven industrialized nations to prevent market volatility, along with concerns about the euro-zone debt crisis and the possibility of a global economic downturn, was keeping demand for Treasurys strong…. – WSJ, 8-8-11
  • What the Move on U.S. Credit Means for Everyday Investors: The move by Standard & Poor’s to cut the U.S. credit rating to double-A-plus added more uncertainty to global markets already buffeted by concerns over debt crises and slowing economic growth. Here are answers to some of the most important questions facing investors…. – WSJ. 8-7-11
  • How to Get That AAA Rating Back: Reagan inherited economic problems and fixed them. Obama’s strategy is to blame Bush and Standard & Poor’s…. – WSJ, 8-7-11
  • S&P executive: 1 in 3 chance of future downgrade: A top political adviser to President Barack Obama blamed the downgrade of the U.S. credit rating on tea party Republicans, whom he said were unwilling to compromise on how to reduce the federal debt.
    Obama campaign strategist David Axelrod told CBS’ “Face the Nation” on Sunday that the decision by the Standard & Poor’s credit agency to downgrade the U.S. from AAA to AA+ for the first time was strongly influenced by weeks of standoff between Democrats and Republicans over the debt…. – AP, 8-7-11
  • Greenspan sees stock market drop after downgrade: Former Federal Reserve Chairman Alan Greenspan says he expects the stock market slide to continue in the wake of a decision by credit rating agency Standard & Poor’s to downgrade the U.S. credit rating.
    Appearing Sunday on NBC’s “Meet the Press,” Greenspan said markets will take time to bottom out and that he expects a negative reaction on Monday to the S&P action…. – AP, 8-7-11
  • Kerry, McCain say bipartisan work needed post-S&P downgrade, differ on who to blame: Two senators and former presidential candidates say Standard & Poor’s decision to downgrade the U.S. credit rating speaks to the need for more bipartisan compromise — but they also say the blame lay with the other party.
    John Kerry was the Democratic nominee for president in 2004, and John McCain was the Republican nominee in 2008.
    Appearing Sunday on NBC’s “Meet the Press,” Kerry called S&P’s decision a “tea party downgrade.” The Massachusetts Democrat says he believes that tea party supporters in the House are holding up progress.
    McCain says he too would like to see more cooperation, but the Arizona Republican says President Barack Obama is at fault. McCain says the president failed to lead and did not present a clear plan during the debt-ceiling debate…. – AP, 8-7-11
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