Thank you Standard & Poors for the Downgrade ! United States Needs to go to Rehab !
As much as I hated to hear about the Standard & Poors (S&P) downgrade of our country on Friday afternoon, the more I think about it, I guess I have to say thank you. On a selfish note, I think I have suffered enough with personal investments in the stock market being down sharply in the last 2 weeks due to the ineptness on Capitol Hill and perhaps now there could be more wealth destruction facing anyone having a 401K, SEP, investment account or owning any type of stock portfolio. That simply sucks ! Further, now all consumers, whether they own stocks or not, may be feeling some sort of effect, through the increase in mortgage rates, credit card or car loans. I have a feeling it will not be too bad, but that remains to be seen.
Putting that aside, sometimes a wake-up call is needed. Denial gets you nowhere. The politicians and the White House made it seem like everything was fine after they reached that half-ass deal. The stock market knew better. The market did not rally on that day or any day after that. Have you ever had that bad feeling in your stomach knowing that something was wrong but did not react ? Ever see or hear about the alchololic or drug addict wanting to ask for help but not knowing how to ask for it and they go on one more binge and end up in the hospital, or perhaps kill someone in a drunk driving accident ? Or a child going down the wrong path and hanging out with the bad kids and getting involved with a crime that sends him to jail ? A bad relationship where the other party was cheating or had an illegitimate child ? Or any person having some sort of addiction that is causing great harm. Well, if they get a wake-up call, it can save their life. Get them in a 12 step program, get them to ask for help, support, work out a solution, problem solve, break out of the same old patterns and problems. Stop blaming others, stop living in the past and look forward to the future. Be optimistic, set goals and make it happen.
Our popular culture has given us many examples of lost opportunies where there are no second chances. My hope and prayers are that this is an opportunity to make us stronger and wiser.
Thus, I look at the S&P downgrade as a wake-up call for the United States to solve our fiscal crisis and save our economy. The spend spend spend philosophy has to stop. The half ass "debt deal" was a joke. Serious cuts have to be made to solve the deficit problem. The fiscal house has to be put in order. How come there is not a budget ? Every private company has a budget. The fact that the debt ceiling was not resolved until the final hour was an absolute travesty. Leadership in the country has to be a higher level. If the Obama Adminstriation was so hardcore and had a plan for Obamacare, how come they had zilch of a plan for the debt ceiling ? And the only plan was from Harry Reid who barely retained being a Senator by a few votes from the last Nevada election ? The bigger picture is that all politicians need to be held accountable to work together. When every year, the country is losing so much money, it cannot be THAT hard to figure it out. Significant spending cuts have to be made and republicans and the tea party will need to lighten up on the fact that taxes will need to go up as well. That is compromise. Further, hard decisions need to be made on entitlement programs NOW. The country cannot afford Obamacare. The country cannot have social security at 65 anymore. Reform social security, medicare and medicaid now. How difficult would it be to raise the social security age to 68 that would go into effect at some point in the future where those folks that are younger can plan for it ? Lastly, with all the red-tape and bureaucracy, the private sector has been stifled to grow and to hire which is why they have hoarded cash. The uncertainty of the current political climate of the Obama Administration has been one of the worst for business. That is what has been quoted by several CEOS such as Steve Wynn. For the economy to grow, there needs to be a pro-business environment, period.
Either way, this downgrade could be followed by Moodys and Fitch and could lead to a further downgrade by S&P. Whatever your view, the good news is that the wake up call is for real. It provides the drug addict or the alcoholic the opportunity to save his or her life. It also allows for spending addiction of the United States to admit there is a problem and for all the folks that receive the benefits to understand that sacrifices have to be made. People work for a living. They have families to support. For the United States, it allows the opportunity to prove that we are still the best country and economy in the world. With democracy, with leaders, with innovation and compromise, we will come together, make hard decisions, and improve as a country. And be better than ever. That is my hope. And my belief...
Sometimes when you have the opportunity to go to rehab, you should say "YES YES YES" !
Thank you S&P !
What are your thoughts !?
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