The S&P downgrade of US debt from AAA to AA+ comes as no surprise to anyone but Treasury Secretary Geithner who, as recently as a week ago, declared that there was "no chance" of a downgrade. Has he been living in a cave? Did he listen to the rating agency executives' testimony to Congress two weeks ago? Geithner has no credibility if he is surprised by the downgrade. He is either an idiot or he is uninformed (perhaps both).
The markets were certainly aware that this outcome was on the way. S&P had said, weeks ago, that unless $ 4 Trillion of credible debt reduction was accomplished and soon, the downgrade was highly likely. So, you have to wonder what the deal is with Geithner? Is this the guy advising the President and setting Administration policy.
It's one thing to have crackpot views, which seems rampant in this Administration. It is quite another thing to be uninformed and incompetent.
Geithner should step down and let someone who, at the very least keeps themselves informed of what is going on, come in to advise this apparently hopelessly befuddled President.
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