Entries in Stock Market (3)


Pawlenty: Stock Market Woes 'Another Wake-Up Call' for Obama

Tom Williams/Roll Call/Getty Images(JOHNSTON, Iowa) -- Only hours after the closing bell rang on Wall Street to bring to an end one of the worst days in the history of the stock market, Republican presidential candidate Tim Pawlenty pointed the finger of blame squarely at President Obama, saying it should serve as "another wake-up call."‬

"It's another wake-up call to a president who seems just so out of touch and inept and really doesn't have a plan to fix the economy.  I do," Pawlenty told ABC News in a brief interview after his event Monday afternoon at a cafe in Johnston, Iowa.  "We've got to cut taxes, we've got to lighten up on the regulations, we've got to do things to encourage job growth in this country, not have it suffocated by overreaching, burdensome government."

"Look, this problem has been brewing for a lot of years and a lot of decades, but he made it exponentially worse," Pawlenty added.‬

The former Minnesota governor spoke minutes after wrapping up a campaign event in front of a packed house at Rich's Brew, a cafe on the outskirts of Des Moines.‬

"The Standard & Poor's downgrade that occurred at the end of last week is another symptom, another indicator of how far off track our nation has become under President Obama's failed and misguided leadership.  I think it's time we downgrade Barack Obama from the presidency of the United States and move him back to the private sector," Pawlenty told the crowd at the event.‬

Towards the end of Pawlenty's remarks, a Johnston resident named Randy Forte interrupted him to urge him to "give them hell" at Thursday's GOP debate in Ames.  Pawlenty's performance at the last debate in New Hampshire was widely criticized, marked by his failure to take on frontrunner Mitt Romney despite coining the term "ObamneyCare" the day earlier.‬

"This is the time for all of us to put our shoulders back and roll up our sleeves and get it done, so we need you," Pawlenty said to the crowd.  "If good people do nothing then the goofballs take over. "‬

"You've got to give them hell Thursday," Forte yelled from the back of the room.  "You've got to get up there and give them hell."‬

"We will," replied Pawlenty.  "But Ames on Saturday is where you can really give some additional help to our campaign."‬

Forte later told ABC News that he wanted Pawlenty to drop some of his "Midwestern nice" attitude and get people "stirred up."‬

"He's a Midwesterner.  He's a kind and decent guy and very polite.  He'll let other people get things stirred up," Forte explained.  "What he's got to do is he's got to do some of that stirring.  He's got to let go of some of that Midwestern-ness and go after the people, the folks on the dais with him, but in particular go after Obama."‬

All the same, Forte said he intends to vote for Pawlenty in Saturday's straw poll.

Copyright 2011 ABC News Radio


S&P's Credibility Under Fire Amid US Debt Warning

Standard & Poor's Financial Services(WASHINGTON) -- Standard & Poor's sent shockwaves through Wall Street and Washington when it lowered its outlook on U.S. federal debt to "negative," but the credit-rating agency's own credibility has recently been called into question.

In fact, just last week a Senate investigations subcommittee ripped Standard & Poor's in a comprehensive report on the financial meltdown. The bipartisan report -- issued by Sen. Carl Levin, D-Mich., and Sen. Tom Coburn, R-Okla. -- in part blamed S&P for the crisis, saying the agency had inflated ratings on mortgage-backed securities for their own profit, only to later downgrade those ratings, destroying the value of the securities and contributing to the crisis.

In short, the senators say, "Inaccurate AAA credit ratings introduced risk into the U.S. financial system and constituted a key cause of the financial crisis."

The credibility of S&P is especially significant in the wake of the rating agency's statement on Monday that it was starting to lose faith in the government's creditworthiness. While S&P maintained its best-possible AAA rating for US federal debt, the firm lowered its outlook from "stable" to "negative." The statement means the agency now thinks there is a one-in-three chance that it will reduce the rating of the bonds in the next few years.

The S&P report quickly reverberated from Wall Street to Washington. On Monday major market indicators recorded their biggest one-day drop in more than a month. In Washington -- where a debate is raging on whether to raise the country's debt ceiling -- lawmakers pounced on the report for partisan gains.

The inability of Congress to rein in the nation's soaring deficits in recent years was at the heart of S&P's concerns. However, the agency did applaud new efforts from both sides of the aisle to tackle the country's long-term fiscal problems.

Copyright 2011 ABC News Radio


S&P Goes Negative On US Government Debt

Stephen Chernin/Getty Images(WASHINGTON) -- Standard & Poor’s, one of the major credit rating agencies, has changed its outlook for U.S. federal debt. The firm has kept the rating at AAA, but revised its outlook from stable to negative.

The report suggests the lack of any meaningful reform to the nation’s long-term fiscal problems two years after the financial crisis led the firm to reassess the risks inherent to investing in government bonds.

The stock market reacted negatively in early trading, shedding about two percent of its value.

Copyright 2011 ABC News Radio

ABC News Radio