John
Verum Serum
7/15/2011
Yesterday, S&P announced they were considering downgrading our creditworthiness. Ace points out that the real story here is being missed amid the debt ceiling din:
The President and his allies in the media wish to pretend these credit rating warnings are only about the risk of default due to a failure to raise the debt limit.
They’re not, as S&P makes clear:
A 50 percent likelihood that the U.S. will lose its top credit rating from Standard & Poor’s even if Congress reaches agreement on raising the debt ceiling left markets little changed.
As Ace goes on to point out, this isn’t about our ability to reach a deal, it’s about the fundamentals…
The article continues at Verum Serum.
Update: IMF Says US Budget Requires 33% Spending Cut & 35% Tax Increase
