This Day On The Street
Continue to site
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

Romney Takes Dig at Obama for Moody's Warning

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 - Get Report) 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
MCO $110.11 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs