The "liberal" wing of the Democratic Party has no power. Obama doesn't listen to them.
That is comical since they've given us 2 years of their brilliant solutions for the economic problems. Obama and Boehner had an agreement for $3.2 trillion in cuts and $800 billion in new revenues. This would have prevented a downgrade. Because the lib wing was demanding rolling back the Bush tax cuts and Obama asked for another $400 billion in new revenues due to their clamoring, that deal fell apart.
It is my belief that without the Tea Party, we could have gotten a bill that was larger in savings and it would have included revenue. I believe there were enough politicans that were willing to compromise. But, House Leadership/Senate leadership on the GOP side would not ignore the Tea Party.
Without the Tea Party or House Republicans, Obama would have gotten his wish. A clean raising of the debt ceiling.
What would our credit rating be under that scenario?
Obama has no problem with ignoring the liberal side of his own base. He's done it throughout his presidency.
Then he definitely has no problem ignoring the American people... because he has definitely done that throughout his presidency.
but if we are having a debate on why it happened, then we need to listen to their reasons, even if they are faulty.
Well there only reason wasn't the House Republicans, although that seems to be the only reason you are acknowledging.
And the GOP has made it perfectly clear: they won't vote for a bill that raises taxes. So, unlike the House, which passed bills that had no chance of becoming law, the Dems dropped it.
And the GOP is right. A bill that raises taxes right now would be just as catastrophic to the economy. One of the major reasons Obama didn't rull back the Bush tax cuts even though he had a majority in both houses of congress is because his advisors were telling him that would happen.
The GOP debate last night showed exactly what S&P was talking about in the quotes I posted: EVERY candidate said they would not support a massive trillion dollar cuts bill if there was just 10% new revenue.
Don't mix new revenue with tax increases. There is a distinction.
More info, please.
Reid and Beohner had an agreement to implement the Gang of Six plan, which was a temporary increase of the debt ceiling that would hold things together for 6 months while a larger deal was negotiated. Obama shot it down because he wanted this issue resolved before re-election time came around.
But the reality is that in the end that is what he wound up getting anyway.