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Will U.S. credit rating slip incite action in Congress?




President Barack Obama delivers a brief statement at the State Dining Room of the White House.
President Barack Obama delivers a brief statement at the State Dining Room of the White House.
Chip Somodevilla/Getty Images

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On Monday, President Obama made his first public comments on Standard & Poor’s downgrade of its U.S. stock rating from AAA to AA+ that sent stock indexes into a worldwide tailspin and the Dow Jones industrials into its biggest one-day point drop since December 2008. Despite insisting that the U.S. would always be a “AAA nation” and that investors still consider it a desirable place for their money, Obama expressed hope that the downgrade to AA+ would spur Congress to resolve its political gridlock over tax reforms, entitlement programs, and the national debt. Now, this morning stocks rallied with heavy trading across the board. Does this mean the crisis is over? And lawmakers are in recess, most of them left the capitol last week for their districts. Will they return to attempt to quell the crisis?

Guest:

Craig Torres, Reporter, Bloomberg News. Covers the economy and the Fed for Bloomberg

Scott Simon, Managing director of PIMCO’s Newport Beach office. Also a senior member of PIMCO's portfolio management and strategy groups and head of the mortgage- and asset-backed securities teams

Congressman Brad Sherman, (D-27), Representing the 27th district in the San Fernando Valley, one of five CPAs in the House of Representatives and senior member of the House Committee on Financial Services

Congressman Tom McClintock, (R-4th), Representing northern California, including Lassen, Butte and Sacramento counties.