Video - David Beers On Fox with Chris Wallace - Aug. 7, 2011
From earlier this morning.
S&P Says 1 in 3 Chance of More U.S. Downgrades
Q: Can you explain Tel Aviv markets’ reaction today? (Israel's stock market fell 6% and trading was halted.)
Beers: Much of what is worrying markets is Europe and from a global economic perspective that the economy might be slowing. So the market is not just reacting to S&P's decision.
Q: Do you hold Democrats or Republicans more responsible, and do you need to see a combination of entitlements and revenues in a compromise?
Beers: “Both parties are jointly responsible; it’s really not about either party. The decision is about difficulty on all sides to find compromise. We think credibility would demand that any agreement would command support from both parties. But the key thing is, yes, entitlement reform; it’s important because it is the biggest component of spending.”
Q: The White House isn’t happy – they say you made a $2 trillion overstatement and then changed your justification for the decision…
Beers: “[That's a] complete misrepresentation of what happened. When we made the modification, we did so after talking to the Treasury; it doesn’t change the fact that even with an agreement, that the underlining debt is building and is rising and will continue to rise.”
Q: Given the economic and political situation, do you see upgrading [of the credit rating] or further downgrades?
Beers: "We have a negative outlook on the rating and that means we think that the risk currently for the rating are to the downside."