Standard and Poors downgraded US credit today for the first time. So much for assertions that the S&P gets contracts from the US government and would never bite the hand that feeds it.

A downgrade was what was supposed to happen if Congress did NOT approve a debt deal. A stock market drop--which we are having--was supposed to happen also if the deal did NOT go through. The deal went through.

Maybe Standard and Poors and the market know something about the quality of the budget reduction package that the President does not; namely that it is tenuous and trivial in comparison with the size of the problem America faces.

There is a lot President Obama could do to revive the economy. Stephen Moore of the Wall Street Journal thinks the crisis in his presidency might actually force Mr. Obama to confront the need for pro-growth tax reform. As Moore points out, among the many ideas for a budget deal put forward in recent weeks was a bi-partisan proposal with such tax reform at its heart. Close business loopholes and reduce personal deductions--in other words, increase taxation of consumption--while lowering tax rates on investment--the creation of new jobs.

I see no reason rich people need a deduction on a $750,000 mortgage for a second or third home. I do consider it in the public interest that such persons be encouraged to put their money directly into investments.

Imagine if, instead of the gargantuan waste of "stimulus", the President had promoted a pro-growth investment strategy two years ago!