This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Romney Takes Dig at Obama for Moody's Warning

Stocks in this article: MCO

NEW YORK ( TheStreet) -- Mitt Romney's campaign is lagging the news by a day as it took a dig at President Barack Obama on Wednesday for a Moody's (MCO) warning that emerged Tuesday.

The ratings agency warned that it may downgrade the U.S. government's triple-A debt rating by 2014 if Congress does not reach a deal for a new federal budget.

"For nearly four years, President Obama has presided over reckless spending and runaway debt. And now it's clear that all Americans will pay the price, with another potential credit downgrade," Andrea Saul, a Romney spokeswoman, wrote in a statement on Wednesday.

The news spread through U.S. markets on Tuesday as gold futures -- a safe-haven investment -- ticked higher on downgrade concerns, while equity markets mostly shrugged off the warning.

The ratings agency made clear that a downgrade would occur only if lawmakers failed to avert the so-called fiscal cliff -- an array of decisions that include the fate of expiring Bush tax cuts, the payroll tax, the Alternative Minimum Tax and critical spending cuts, among other things.

Almost any sort of budget deal, even one that would implement massive cuts in spending, likely would avoid a debt downgrade.

In the event of a Romney victory, the Republican presidential nominee would be faced with the same downgrade threat if his new Congress didn't reach a deal.

Since a deal must be reached during the lame duck session that transpires after Election Day until the end of 2012, chatter on Capitol Hill ahead of the August recess included a proposal to push back the critical budget decision by six months. Such a move would avoid the potential stalemate of a lame duck Congress and leave the responsibility to the new legislative period and the next presidential term.

In other words, failure to avoid the fiscal cliff would be a mark on whoever wins the November election -- Romney or Obama.

-- Written by Joe Deaux in New York.

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs