S&P’s Lack of Confidence in Washington

Standard & Poor’s decision this morning to place the credit rating of the United States on negative watch is long overdue. While the impact of S&P’s announcement is immediately reflected by a decline in the equity markets of approximately 1.5%-2.0%, the real target of this release is Washington D.C..

In layman’s terms the S&P release is voicing a lack of confidence in the credibility of both parties in Washington to deal with our financial house. We should not be surprised.

While politicians from both parties may talk a good game—especially recently—while they feed at the trough of the large monied interests emanating from Wall Street and other corporate entities, the American taxpayer has suffered from the incompetence and intransigence of Washington to deal with our LONGSTANDING fiscal issues and indebtedness. Playing shell games may fool some of the people all of the time but that gamesmanship is no way to manage a nation’s finances.

What is the immediate response from the U.S. Treasury to S&P’s decision? Mary Miller from the U.S. Treasury toes the party line in putting forth the following statement, including this specific quote,

“…we believe S&P’s negative outlook underestimates the ability of America’s leaders to come together to address the difficult fiscal challenges facing the nation.”​

Really? What abilities? What leaders? Why is it that the confidence and approval ratings for both the administration and Congress are so low? Because the American public shares the feelings of S&P. I ask you whether you have real confidence in Washington’s ability to get our LONG TERM fiscal house in order. I do not. Why? Because that would require real change from both parties in how Washington works. I see very little of the real leadership and personal political sacrifice necessary to create that change.

How might Washington start to create the necessary change? Announce TODAY that Congress will have the same healthcare package as everyday Americans. That move is purely symbolic but let’s see them start with that.

What other moves would people like to see?

As our friends from Missouri have embraced, for those in Washington it is long past due that they SHOW ME and SHOW US real character, real leadership, real sacrifice, real integrity, real transparency, and real truth.

About Larry Doyle 522 Articles

Larry Doyle embarked on his Wall Street career in 1983 as a mortgage-backed securities trader for The First Boston Corporation. He was involved in the growth and development of the secondary mortgage market from its near infancy.

After close to 7 years at First Boston, Larry joined Bear Stearns in early 1990 as a mortgage trader. In 1993, Larry was named a Senior Managing Director at the firm. He left Bear to join Union Bank of Switzerland in late 1996 as Head of Mortgage Trading.

In 1998, after 15 years of trading and precipitated by Swiss Bank’s takeover of UBS, Larry moved from trading to sales as a senior salesperson at Bank of America. His move into sales led him to the role as National Sales Manager for Securitized Products at JP Morgan Chase in 2000. He was integrally involved in developing the department, hiring 40 salespeople, and generating $300 million in sales revenue. He left JP Morgan in 2006.

Throughout his career, Larry eagerly engaged clients and colleagues. He has mentored dozens of junior colleagues, recruited at a number of colleges and universities, and interviewed hundreds. He has also had extensive public speaking experience. Additionally, Larry served as Chair of the Mortgage Trading Committee for the Public Securities Association (PSA) in the mid-90s.

Larry graduated Cum Laude, Phi Beta Kappa in 1983 from the College of the Holy Cross.

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