O’Malley: U.S. Credit Rating Downgrade Not Justified

BALTIMORE (WJZ)– As Standard and Poor’s continues to defend their decision to lower the U.S. credit rating, lawmakers are firing back. That includes Governor Martin O’Malley who was on ABC’s Sunday morning show “This Week.”

Andrea Fujii has more.

Gov. Martin O’Malley says the downgrade of the U.S. credit rating was unjustifiable.

“They made a $2 trillion mistake, the other rating agencies did not downgrade U.S. debt because they did not make that $2 trillion mistake,” he said.

But like many lawmakers he knows the decision was symbolic.

“One has to find understandable their pessimism about our inability to come together,” Gov. O’Malley said.

And coming together may continue to be a stumbling block, as evidenced by O’Malley’s interaction with Alabama Republican Senator Jeff Sessions.

“The credit debt rating according to experts is pulling down growth and costing us jobs,” Sen. Sessions said.

“Ah, good! You said jobs, Senator,” Gov. O’Malley responded.

Gov. O’Malley thinks jobs are the key to getting out of this financial mess.

The latest Bureau of Labor statistics has Maryland’s June unemployment rate at 7 percent. That’s 2.1 percentage points lower than July’s national average.

“We need a balanced approach and the extremism, the Tea Party obstructionism in Washington is keeping us from restoring that balanced approach that America’s always used,” he said.

The world’s top economic powers are pledging to cooperate to prevent a further financial crisis.

Sunday night, Treasury Secretary Tim Geithner is taking part in a conference call with representatives of the other G-7 nations to discuss the first-ever downgrade of the U.S. credit rating, along with the debt crisis in Europe.

World leaders are trying to calm investors ahead for what’s expected to be a rocky week for the stock markets. About $2.5 trillion in world stocks were wiped out last week, and that was before Standard and Poor’s officially downgraded the U.S. credit rating.

  • Fed Up

    The “boy king” has spoken, fall to your knees.

    • KottaMan

      O’TaxMe is a douchbag. Typical tax & spend Demo.

    • Vince Brusio

      Gov. O’Malley: this Tea Partier will debate you any time.You’re a fraud, sir. And I’ll prove it.

  • DemTaxYou

    no more taxes, cut this out of control spending. running up the credit card to the bank of china is stupid!

  • TaxandBurnLiberal

    get a clue O’Rly!? wow we need to hire more useless gov’t workers lets raise taxes each year until the tax payers have to pass a cap on property taxes.
    yes thats the type of action we had to do to defend against your idiot budget skills.

  • Clueless Governor

    Let me get this straight… The rating downgrade was “not justified”, it was a “mistake”, but it was “understandable”? I guess we should take your word over a 150+ year old financial company? They obviously don’t know what they’re doing, right? Get a freakin’ clue O’Malley!

    • I Love It

      LOL…great observation and remark…and you are correct…clueless..

      • Chris

        That’s almost as funny as saying that spending had nothing to do with the need to raise the debt ceiling.

  • T J

    Omally we all get a credit rating.15 trillion Debt, 9.2%unemployment!, if we ain’t working we ain’t paying taxes. . Not only that 350 million Americans, and all do not work, and a 15 trillion Debt, that my Freind are bad ODDS

    • Steven Cville

      9.1% unemployment and that does not count those who are no longer collecting which makes that rate about 17.0% That little future cut in spending that was in the budget deal was nothing.

      They should just take the current budget freeze next year and cut 1% off each year there after for six years (6% over 7 years) evenly across all budgets including Medicaid only Soc.Sec. and Medicare adjusted to cost of living every other year.

      Social Security 2011 tax rate is 4.2 percent for employees, 6.2 percent for employers, and 10.4 percent for self-employed people. These rates apply to earnings up to the maximum taxable amount ($106,800 in 2011). Increase the taxable amount to $300,000 at same percentage rates.

  • T J

    This is why Omally wants to endorse 21 year olds . They ain’t got a clue about people, life, work, human nature

  • T J

    Welcome to the THREE ring circus, O’mally, The fat Lady BAB’s, old man ben

  • mike

    Wall hy would anybody listen to this idiot. He has bled all marylanders dry with his tax and fee increases. He is a discrace as a gov.

  • unhappy maryland

    omalley crawl back under your rock

  • Geri

    The only questions that I have is why can’t those loop-holes be closed that give big businesses the tax breaks that they continue to receive? The other part of that question is why are the wealthy not paying their fair share? Why must it always fall on the backs of the dwindling middle-class? At this point, I am not certain that we even need political parties anymore. I would like to see level-headed persons elected that can come together and work for the common good— the perpetuation of the greatness that we all know the United States can be once again. With all due respect, I don’t ever want to see my country being held hostage by the “Tea Party” and their unwillingness to any type of compromise

    • Dave

      Simple economics. If you have maxed out your credit cards and have to borrow money to make interest only payments on them how does raising the cards credit limit so you can spend more help? If you do not make massive changes to your spending habits you are in deep trouble. I agree that closing some corporate loopholes are needed but piling more taxes on the rich will only result in the rich moving to another country and paying NO U.S. taxes. Unlike us they can afford to move. If it takes the Tea Party sticking to their campaign promises to force the Government to stop this insane spending spree then I find that refreshing. The next thing they need to stop is ANY aid to other countries. I see no one sending us aid to help us pay our debt. Lets let oil rich Muslim nations provide aid to poor Muslim countries. Why should we borrow money to send to someone else. Once we are on even keel and owe no one money and have a balanced budget we can consider offering small ammounts of aid to other countries if they have a disaster. But history has certainly shown we cannot buy friends and its stupid to continue to try. In the case of Maryland. We are the third most in debt state in the union. Just behind California and Hawaii. Any financial advice offed by Gov Owe Malley should certainly be ignored. He couldn’t find his butt with both hands and two tries when it comes to running anything.

    • Mark

      R u serious? Why don’t you go research that the top 5% pay 90% of the taxes. Why not get the 60% who do not pay taxes to pay taxes? Why not stop the open check book policy in DC? Why not have common sense? Why haven’t the politicians taken a pay cut or lay off, why haven’t they curbed their spending? The most jobs lost have been in the private sector… where are them meetings from the likes of Cardin to be angry that private sector should do more with less.

      Seriously, cut the entitlements (not medicare or SS – people have paid into that). China even said to reduce the welfare programs. Take away the retirement from the politicians – why should they have a retirement plan after serving 2 terms. Cut the gov’t spending, the waste…

    • baltimore resident

      easy way to have a pay fair share, a flat 15% tax you pay this on everything, income, purchases etc, if you spend more you pay more if you spend less pay less, that way those that can afford pay more than those that don’t have it, and 15% of your income and that is ALL income is paid, no loop holes no credits all flat tax.

  • Greenbelt Md

    omally maybe you can join the B.C.P.D. or otis the gang banger canadate for mayor. the sky is the limit omally

  • Steve

    Yes, Mr. Tax and Spend himself has an idea of how the government should work. After all, he is nothing more than a puppet of Obama and Obama is never wrong, just ask him.
    If you reduce the tax burden, the citizens can spend that money on other things which will get the economy moving and help to get the tax money moving. As long as the big clueless government continues to dip their hands in to the working man’s wallet, we will have more of the same. With that and make everyone actually pay their fair share of taxes, we could be out of debt in no time. But, as long as this country is run by special interest groups, plan on being broke.

  • Danno

    The headline says that O’Malley called the downgrade “justified”, but the first line of the story says he called the credit downgrade UNjustified. The story quotes him as calling it a “mistake”. I suggest better editing, and a change to the headline. (And yes, it is not contradictory to disagree with someone, and to understand the person’s–or organization’s–position.)

    • Danno

      Note: The headline was corrected at some point after I posted the comment above.

  • Dave

    Typical Maryland Polics. OweMalley wants to be on both sides of the issue. He disagrees but understands why. His campaign kept pointing out that fee’s were the same as taxes in regards too Gov Ehrlich but he will look right at the camera and say he didn’t raise taxes, only fee’s. He will galavant all over the world at taxpayer expense trying to ” Bring jobs to Maryland” but when Walmart was planning to open a distribution center on Marylands eastern shore he and the Democratic led legislature drove them away with mandates. It is a rare talent this teflon Leprechaun has to be able to talk out of both sides of his mouth at once. .

  • John Marr

    Playoffs? Your’re talking playoffs? Maryland is in the bottom 5 as a state for job creation, while next door Virginia is in the top five. O’Malley is one of the best leaders we have in Md. I’m not sure how our state got so stupid.

    It’s all we got here, lame pols and blue crabs. Just look at our leaders, O’Malley, Babs, Cardin, Hoyer.morons all.

    • Dave

      Cardin isn’t stupid. He got his money out of Old Court Savings and Loan the day before the warrants were served closing them down. Just because he was Attorney General at the time and the warrants were sitting on his desk while he did his banking does not constitute any unfair practices by him. Of course you all heard that his campaign workers pled guilty to breaking into Michael Steeles house before the election where he beat Steele to get his Senate seat. Oh. Thats right. Local news didn’t report that until after the election. Local news outlets run interference for the Democrats in Maryland. Thats why the same morons keep getting elected. You never hear about any of the shady things they pull untill a national news organization is about to break the story. Then the local stations and papers begrudgingly report it. Local news. The propoganda arm of the Maryland Democratic Machine.

  • mhergetroyd

    So what do you expect a sreaming L. D. with National asspirations to say. He has is nose so far up the tunnel he can’t tell the good s….tuff from the bad s…..tuff.

  • Harry

    According to what most taxpayers in this town say OLE Marty being the Gov. ain’t justified !!!!

  • John Marr

    I was wrong. The state of Maryland ranks dead last in job creation. My apologizes for this error.

    Keep up the good work, Martin. You da Man.

  • mhergetroyd

    One more comment. Ok I think I understand “modern economy”, but what the H are “modern investments”. I’m afraid of any answer from any bought and paid for pol, which is pretty much 99% of da bums.

  • T J

    O’mally the king of deadbeats. i said once i will say it again omally you are a dirty doble crosing RAT

  • Ramarro L. Smith

    Now Ya’ll just keep believing Good Old Barack O’malley, him all his sho nuff honest and thruthful crew. When will we Americans cease to elect on popularity and party rather than QUALIFICATIOS.

  • Deft

    The US has $14.5 trillion in debt and runs a $1.6 trillion operating loss. It should be rated junk. The only way they pay the bills is by rolling over their borrowing and printing money and debasing the currency. This is obvious to anyone with a brain.

  • S93se

    hes either an idiot or he thinks that his maryland constituents and other americans are idiots.. either way, im disgusted.

  • Fred Auffarth

    If O’Malley keeps letting Maryland raise tolls, and other taxes we in Maryland may be able to pay off the countries cash problems.

  • whatnow

    O’Mally and Obama think we are all idiots. Answer me this question, WHERE DID THE $3 TRILLION STIMULUS GO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Bush was lambasted (rightfully so) for increasing the national debt by $5 trillion in 8 years. Obama has increased it by $5 trillion in 2 1/2 years. WHERE DID THAT MONEY GO!!!!!! Why aren’t the news organizations as upset about Obama doing it as they were Bush doing it. This country has become communist – all the news organizations except the much hated Fox are for the dems and we must hide our religion. Does anyone remember their history lessons. That was Russia. Someone above blasted the Tea Party (that is because John Kerry told them over the weekend S&P’s actions were the fault of the Tea Party). All the Tea Party says is don’t raise middle class taxes and don’t spend more money that we don’t have. Who can argue with that??????

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