The Morning Joe crew wasted much of the first part of the show - the crew does some things very well, but free style comedy is not one of them. I think they are a little too wrapped up in their personal relationships and inside jokes that just don't translate to the audience.
The crew did finally settle on a topic -- the news that S&P has a negative longterm outlook on America's credit worthiness. The controversy among the group was that the administration dismissed the warning as political. Joe Scarborough took the position that the administration should have "used" the report to get the message across to Republicans that defense cuts are necesssary as well as taxes on the rich.
Mark Halperin and Mika felt like Obama played it well and that Obama is serious about cutting and understands the debt problem. Chris Hayes from the Nation mag came on the show and he stated that S&P is a discredited outfit and no one should listen to what they say. Hayes also said that the warning the adminsitration should look for is higher interest rates, and that now it makes good economic sense for government to borrow and spend because interest rates are so low. No one on Morning Joe called Hayes a moron, but they should have -- obviously the Morning Joe crew didn't understand the idiocy of Hayes' position.
After accusing S&P of missing the banking/mortgage crisis, which was caused in large part because the Fed kept interest rates artificially low, Hayes turns right around and urges government to borrow and spend more money on "investment" schemes because interest rates are low. Apparently, no one on Morning Joe understands the nature of the debt problem. Obama and the Democrats want to borrow and spend more money, and they don't show any willingness to tackle entitlements, and they continously go back to taxing the rich. So, the Democrats want to take more money out of the private sector along with more borrowed money and spend it on government stimulus, but they are willing to cut defense spending.
Democrats had an opportunity to cut defense spending when they had the majority, but they expanded the operation in Afghanistan -- now, Obama has entered Libya and is spending hundreds of millions more with no plan to exit soon. Why Halperin thinks Obama is serious about cutting spending, I don't know. Why Joe Scarborough thinks that Republicans should agree to raise taxes that will be sucked down a black hole, I don't know. Why Hayes thinks government should borrow and spend more because interest rates are low, I don't know. It's absolutely incredible -- and the most amazing thing is that the New Republicans and the Tea Party will get demonized.