Our politics created the financial crisis; our politics have to solve the financial crisis.
The language of the S&P statement was plain, whatever you think about it. It was largely an indictment of our political system's ability to solve the debt-related issues we have all incurred:
The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy.
Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.
The solution is to stop the political gridlock. The political parties have to work together to come up with a balance approach by reconsidering the bipartisan Simpson-BowlesReport, Gang of Six Plan, or a combination of both. To prevent a national crisis, the Commission should immediately be appointed and use Simpson-Bowles, Gang of Six Plans as a framework. There is no need to re-invent the wheel. Have it scored. Then, Congress should be called back into session and vote up or down on the Commission’s Plan before Labor Day.
We have to show that our political system is functioning. Our political behavior can restore confidence and stability in the markets. Even though many in the main stream media are posing the questions on who is the blame, and the GOP is ready blaming President Obama nothing in the blame game resolves the financial crisis. The media, GOP, and Democratic message should not be centered on blame, but on a solution. We have to look for solutions, and just not assign blame. How do you think this would work?
