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Obama says work ahead to get US finances on track

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Obama says work ahead to get US finances on track


News of the America’s first-ever downgraded credit rating status failed to stop traffic in Times Square.

Some say it is the beginning of the end for the world’s richest nation. Hours before the announcement was made public, Barack Obama said the US has to work together to find a solution.

“We’ve got to make sure that Washington lives within its means, just like families do. In the long term, the health of our economy depends on it. But in the short term, our urgent mission has to be getting this economy growing faster and creating jobs,” said in his weekly radio address.

Political point scoring seemed to be more on the minds of Obama’s Republican rivals for the White House who all blamed the White House for the decision. Republican presidential candidate, Rick Santorum, said: “This will send shockwaves. This is a real blow to the American economy, to our status in the world, and the president has to be held accountable for he did not provide leadership.”

Credit ratings agency have been wrong, of course, in the past and the White House is not alone in questioning Standard and Poor’s analysis.

Financial expert, Marilyn Cohen said: “Double-A Plus is not the end of the world. Is it a blemish? Absolutely, it is a huge blemish. But other countries have lived through downgrades and been better off afterwards.”

A weekend of reflection for Wall Street may ease the impact of S&Ps lack of confidence in the US economy and its effort to solve its debt crisis. But the loss is most likely to hit ordinary consumers, as it could now be more expensive to take out everyday loans at a time when some economists fear the United States could slip back into recession.

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