For those not familiar with the jargon, S&P’s highest rating is AAA. From there, it goes much like school grades to AA+, AA, AA-, A+, A, A-, BBB+, BBB.
Everything BBB and higher is considered “investment grade.” Everything below that is considered highly-speculative or “junk.”
With that in mind, I think Santelli’s being a little aggressive in saying that without the Tea Party, S&P would have downgraded our debt eight notches to BBB.
However, what the President, his Party, and their media minions seem to forget is that they wanted a clean vote on the debt ceiling, meaning one just on that issue without any other strings attached.
At this point it seems safe to say S&P would have at least downgraded us to AA+ had that been the case as we then would have raised the debt ceiling without any spending cuts regardless of how small they ended up being.
Maybe worse, Moody’s and Fitch might have also reduced our rating last week adding more fuel to the fire that’s happening on Wall Street.Continue reading on www.newsbusters.org