The Senate Banking Committee has begun gathering information
about Standard & Poor's decision to downgrade U.S. government
debt.
The development raised the possibility that the rating agency
will be called before Congress to answer questions about its
decision to lower the nation's longstanding AAA rating.
Banking Committee Chairman Tim Johnson, D-S.D., on Monday
issued a sharply worded statement criticizing Standard &
Poor's downgrade of U.S. debt.
"In the minds of serious, reasonable, and informed individuals,
there is no doubt that the U.S. will meet its debt obligations
and we are seeing even more proof of that today," Johnson said,
referring to the fact that yields on Treasury bonds fell on
Monday in the midst of a steep decline in stock prices. "As
the financial markets stumble, investors continue to regard
Treasury debt as a safe haven in times of economic uncertainty."
"This irresponsible move by S&P may, however, have spillover
effects that tax the American people by increasing interest
rates on home loans, credit cards, and car loans, and by
increasing the cost of finance for some state and local
governments. I am deeply disappointed in S&P's decision
to enter into the game of political punditry."
Touche Tim!!!
Sheila McKinney
