The devil is in the downgrade
July 26th, 2011
02:30 PM ET
12 years ago

The devil is in the downgrade

NEW YORK (CNNMoney) - Even if lawmakers manage to avoid a self-inflicted calamity by raising the debt ceiling, another economic scourge is lurking just around the corner.

It's not the nastiest of "D" words - default. Rather, it's "downgrade."


Filed under: Congress • Debt • Deficit
soundoff (11 Responses)
  1. ConservaFASCISTS/Dutch, Bad Newz, VA

    A downgrade will be disastrous. That's what those dummies like Bachmann and the rest of the teatards don't seem to realize. If our credit is downgraded, interest rates are going to skyrocket like the 4th of July and send us back into a deeper recession than the one we're currently still trying to get out of.

    July 26, 2011 03:02 pm at 3:02 pm |
  2. B

    The President just might have played Mr. Nice guy too long.

    Thought he had a good thing going Last Friday with his news conference and showed Displeasure with the non-sence.

    What happened last night ? Looked like more Sweetness...and Understanding.

    July 26, 2011 03:08 pm at 3:08 pm |
  3. Elizabeth K Miller

    Like a great many others, I AM EXTREMELY ANGRY at the incompetence of our elected representatives, who evidently are completely incapable of doing the job they were hired to do (and will still get paid regardless). Apparently it is necessary to remind our representatives they were hired by us to promote The Nation's Welfare - not their personal or donors' agendas! I understand from the news reports that the Conservatives and the Tea Party want a Revolution; at this rate, they may just get one - and one whose results they will not be happy with. Thoroughly disgusted

    July 26, 2011 03:28 pm at 3:28 pm |
  4. one voice

    These CROOKS on wallstreet can manipulate the system so that they will eventually bleed us dry. Overturn the CITIZENS UNITED DECISION or the mega rich Corporations will put the AMERICAN DREAM OUT OF REACH.

    July 26, 2011 03:31 pm at 3:31 pm |
  5. Will

    It will be downgraded because our lawmakers will not put into teeth into plans on real deficit/spending reform. Plenty people have screamed about it and I think most of us know its going to happen. It is going to have to take some catastrophic events to occur before anything other more than raising the debt ceiling and kicking it down the road.

    July 26, 2011 03:43 pm at 3:43 pm |
  6. The Greedy Old Pigs have declared class war on US!

    Of course the GOBPbaggers don't care. They WANT to see a downgrade. As interest rates go up that will give them more excuses to do what their corporate and billionaire masters have always wanted them to do: Undo the New Deal and destroy the social safety net in America. The teatards are vile, un-American people who serve only their party and their fellow corrupt corporatist cult members – not their country,

    July 26, 2011 03:45 pm at 3:45 pm |
  7. Rick McDaniel

    At this point in time, we simply have to recognize, that we have to take our lumps in the economy. We couldn't buy our way out, and we can't legislate our way out. We have to cut, just like any family has to cut, when they overspend. There is no other solution, and certainly, continued runaway spending, is simply impossible.

    July 26, 2011 03:58 pm at 3:58 pm |
  8. Four and The Door

    Here's what S&P has said: The country would keep its AAA rating if Congress strikes a deal in the $4 trillion range and S&P concludes "that such an agreement would be enacted and maintained throughout the decade."
    With "constructive" input like we are getting from S&P here, some people might get the impression that raising the debt ceiling to $20 trillion would be a good thing to do. The level of debt we have right now is the biggest threat to the future of America. We need politicians who will work to bring it down, not up. Look at Paul Ryan's plan for addressing our debt going forward and you will get an idea of how difficult things will get if the debt gets much worse than it is now. People's lives would need to change dramatically.

    July 26, 2011 03:58 pm at 3:58 pm |
  9. A True Centrist

    Can someone explain to me how the US has not been downgraded already? Most larger economies work on a deficit, but a deficit that is considered minimal compared to total GDP. We as a country have accumulated such an enormous national debt that the interest alone will surpass our GDP in the next ten years. This President is on pace to add over $6 trillion to the national debt in one term!! That's about the same as all previous Presidents before him combined, including the inept George W Bush administration!! How anyone can think this man is even remotely capable of leading us out of this recession is beyond me. In negotiations, it was reported that he will not sign any bill that impacts ObamaCare. His administration has already granted over 1,300 waivers to companies!! If it's such a great law, why are certain companies being handpicked by the administration to be exempt? This administration is corrupt and over its head.

    July 26, 2011 04:08 pm at 4:08 pm |
  10. Rudy NYC

    Downgrade? Nope, that is just not true. I heard it from reliable sources that that is just not true. Sources include prominent Republican members of Congress, Republican presidential candidates, and members of the House Tea Party Caucus.

    Nothing in this article is true. America has a "AAA" rating and always will, just as long as we cut spending on domestic programs that help our economy grow, programs that protect our food and environment, programs to build and repair infrastructure, and more.

    Those cuts will take our country back, back to the 18th Century when we had no need for roads because we all road horses, which means we save on gas imports. Back when we had no organized police forces because we protected ourselves by staying "armed and dangerous." Back when their were no unionized gangs of works, only gangs of laborers that were fully owned by their masters. Those were the days. Let's take our country back to the good ole days when we grand ole parties.

    July 26, 2011 04:16 pm at 4:16 pm |
  11. The Day of Financial Reckoning is HERE - The Great Democrat Welfare Society Ends

    Democrats say NO PROBLEMO!! Just keep spending and spending and taxing and taxing and borrowing and borrowing. The more the merrier. party time! Just send the bill to the next 5 generations of Americans. I'm sure they'll be happy to pay the $100 TRILLION party tab.

    July 26, 2011 04:17 pm at 4:17 pm |