Do you think Deven Sharma is a republican in disguise trying to throw Obama out?
Or is he in league with Obama to put the blame on the republicans in the house?
Or is he a realist calling things as they really are?
We have enough economists in the net who can comment on it if they want to
educate us.
Thanks,
Dilip Deka
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S&P President: We Have No Political Agenda
Published: Monday, 8 Aug 2011 | 5:14 PM ET
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By: Margo D. Beller
Special to CNBC.com
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Standard & Poor's CEO defended his company's downgrade of the U.S. triple-A
credit rating, saying S&P had no political agenda and was not overcompensating
for missing the subprime mortgage mess that precipitated the current economic
situation.
"Our role is to call the risks objectively, with transparency, and that’s what
we try to do to fulfill our role and that’s what our job is for the benefit of
investors," Deven Sharma told CNBC Monday.
He pointed out that going from a triple-A to double-A-plus rating "doesn’t mean
[the U.S. is] going to default, it just means its more risky today than a year
ago."
S&P factored in the political process because it "speaks to how the fiscal,
economic and monetary choices are being made," Sharma said, adding he was
pleased by President Obama's speech today addressing the need for U.S.
lawmakers to have a new sense of urgency to tackle long-term deficit spending.
S&P's view was based on a number of factors including projections of rising
debt levels. Sharma said despite cuts mandated by last week's debt-ceiling
legislation, the U.S. 2015 debt level will be $14 trillion, or 25 percent
higher than today. "The fact is, the debt levels are still doubling from where
we are today and that is an issue to address," he said.
He said S&P regretted its part in the subprime mortgage mess. "Clearly the
housing declines were much more severe than we forecasted or anticipated," he
said, and the rating agency has "made many changes in putting new checks and
balances in our organization. We are committed to the reform process."
Sharma said the drop in markets Monday was not necessarily a reflection of the
S&P downgrade.
"The market reacts in many ways, sometimes unexplainable, but our ratings
really address the fundamentals of the creditworthiness," he said. "The market
could be reacting to the fact there is a slowdown in economic growth. It could
be reacting to what’s happening in Europe. It could be what’s happening in the
U.S. There are multiple factors that...contribute to how the market reacts."
________________________________
From: Ram Dhar <ramd...@hotmail.com>
To: assam@assamnet.org
Sent: Monday, August 8, 2011 8:08 PM
Subject: [Assam] S&P President Deven Sharma's comments after downgrade of the
U.S. triple-A credit rating
Read and watch Deven Sharma's comment on the downgrade which has sent shock
waves across global financial market.
http://www.cnbc.com/id/44062256
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