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Thursday, October 27, 2011

DOWNGRADE WATCH: The Super Committee Is (Predictably) Deadlocked Over Taxes - Zeke Miller

http://www.businessinsider.com/downgrade-watch-the-super-committee-is-deadlocked-over-taxes-2011-10?op=1

The committee must vote on its recommendations before Thanksgiving — and the Congressional Budget Office must "score" the plan before then, which could take weeks. Congressional sources say if a deal is not reached in the committee by next week, they won't likely meet the statutory deadline.
Standard and Poor's hinted today that such an outcome could precipitate another downgrade, and the other ratings agencies may not be far behind.

Note that the downgrades are based on political disorder and uncertainty, not a guess as to whether we can pay our debts.

 

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