Friday, July 15, 2011
Pelosi: Markets might have to plummet before GOP acts on debt limit
House Minority Leader Nancy Pelosi (D-Calif.) warned Thursday that it might require financial turmoil before Republican leaders agree to raise the nation’s debt ceiling.
“I don’t need to see markets drop 400 points [to be convinced],” Pelosi said during a press conference at the Capitol, “but Republicans may need to see markets drop 400 points.”Pelosi noted that it took a stock market free-fall, in late 2008, to convince House lawmakers to rally behind the Troubled Asset Relief Program (TARP), which President George W. Bush had championed to stabilize a teetering Wall Street.
When the House shot down the initial TARP bill, the Dow fell 777 points. Four days later, the House passed the bill, with 57 members switching their votes to yes.
“We voted for the TARP, not because we approved of how we got there, or the cost that it would be, but because it had to be done,” Pelosi said. “And here we are again, so we’ll see what sense of responsibility people have about doing [the debt-ceiling].”
Adding to the urgency, Moody’s Investors Service, the powerful credit-rating agency, warned Wednesday that it might downgrade the United States’s triple-A rating if Congress doesn’t raise the debt ceiling within the “coming weeks.”
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