Standard & Poor's Follows Through On Warning

This down grading in the credit rating of the U.S. shouldn't come as a shock. Back in April of this year the S & P issued a caution. Basically saying in layman's terms, get your act together or suffer the consequences. Politicians seldom listen to each other so why should they listen to anyone else. I heard a member of Standard & Poor's committee speak last night and he explained how this event was really a culmination of actions going back to the Bush Administration and not corrected by the Obama Administration. So now the coveted AAA rating is lost and we wear only a AA+, but beware - because in the comments from Standard & Poor's was another warning - 'you have two years to improve things or your rating will be lowered again'. I wonder if anyone is listening?

APRIL 19, 2011:

NEW YORK (CNNMoney) -- The United States is at risk of having its pristine credit rating lowered if politicians in Washington cannot agree on a plan to bring down the nation's deficits over the long term, ratings agency Standard & Poor's said Monday.

AUGUST 5, 2011:

NEW YORK (CNNMoney) -- Credit rating agency Standard & Poor's on Friday downgraded the credit rating of the United States, stripping the world's largest economy of its prized AAA status.

S&P's statement was blunt in its assessment.

"We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process," the ratings firm said.