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Obama Isn’t Concerned About Change In Credit Rating

Posted by Larry Doyle on May 22, 2009 1:58 PM |

White House Press Secretary, Robert Gibbs

Bloomberg reports, Gibbs Says He Doesn’t Believe U.S. Credit Rating Will Be Cut:

White House Press Secretary Robert Gibbs said he doesn’t believe the U.S.’s AAA credit rating will be cut.

In response to questions at his regular briefing, Gibbs said President Barack Obama isn’t concerned about “a change in our credit rating.” Asked if he expects a cut, he said, “I don’t believe they will be cut.”

Investors sent U.S. bond and currency markets lower amid concern for the AAA rating after Standard & Poor’s lowered its outlook yesterday on the U.K.’s AAA rating to “negative” from “stable.”

A few comments and questions . . .

1. Gibbs should know better than to make a casual comment about our sovereign credit rating. The market listens to every word emanating from an administration to detect the level of seriousness and “risk management” being employed.

2. Is Gibbs indicating that President Obama isn’t concerned in that he does not believe the rating will be cut, or does not really care if it is cut? There is an enormous difference in those interpretations. Gibbs should not be vague.

3. When asked his own opinion, Gibbs provides a glib response without substance. He does not inspire confidence!

The Press Secretary needs to understand that the markets listen, monitor, study, and react to each and every word from the Administration. I, and others, want greater clarity from our financial leaders in Washington. Ben Bernanke and Tim Geithner pick and choose their words very carefully knowing that Wall Street picks up on every nuance. Gibbs should take a lesson on addressing economic and financial topics.

Wall Street and every other financial center in the world detests an official who dismissively passes off a topic of very serious substance.

Why and how do things like this happen? Inexperience and little market knowledge.

For what it is worth, from the time of this news release, long term interest rates increased another 3 basis points.

LD

  • I’m a Linda too

    Apparently the entire Obama administration doesn’t think before speaking.

    Especially considering the US Dollar follwing to historic lows.

    I guess the “change” he was talking about, what was all our dollar was going to be worth.

    • Bernanke gets it, as does Sheila Bair. Summers has issues. Geithner has made more than his share of mistakes. Obama is totally locked in on his agenda and truly does not appreciate the economics. Gibbs is a nitwit.

      Change for a quarter?

  • kbdabear
  • TeakWoodKite

    Gibbs should take a lesson on addressing economic and financial topics.

    He has…the Windy City School of Pay to Play Economics.

    Do not expect these people to care about nuance… Although you have me laughing all the same. I have learned more from you than Gibbs who has an inside track on his investment portfolio will ever know…
    Why would he be so sanguine about it? What does he know that the market doesn’t? When IGITS speak Wall Street is not listening. I get suspisous when encountering pols who are smarmy.

    It is remarkable that BO’s TOTUS in Chief would make BO’s administration look bad. I wonder if he ever read the note left for him in the flack jacket by his predecessor.






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