Another day - another credit rating agency warning about our debt. On the heels of Moody's threatening to downgrade our nation's debt rating on Wednesday - the S&P rating agency fired a warning shot too - putting our nation's triple AAA rating on negative watch. In a statement released yesterday - S&P said, "owing to the dynamics of the political debate on the debt ceiling, there is at least a one-in-two likelihood that we could lower the long-term rating on the U.S. within the next 90 days."
That's right - there's a 50-50 chance the United State will be downgraded to a nation with a spotty record of paying our bills. Even if a deal is made - S&P warns - our credit rating could still be downgraded if the agency doesn't feel enough has been done to solve the problem for the long term which puts Republicans short-term solutions off the table. Meanwhile - another round of talks at the White House pushed the President into laying down a deadline for a deal. "It's decision time," the President said issuing a 24 to 36 hour deadline for Congress to make a deal on the debt-limit. The house of cards that our economy is built on thanks to 30 years of Reaganomics and so-called Free Trade is now starting to crumble. And last night - lawmakers took to the diamond to play their annual Congressional softball game.
Does anyone else hear the fiddle playing as the nation burns?
-Thom
(And what tune is it playing? Tell us here.)
