Quote:
Originally Posted by whell
No that certainly wasn't the main reason for the downgrade. The main reason that S&P downgraded the credit rating the first time was their concern that the deal last year to cut 2.1 Trillion in spending didn't go far enough. They were skeptical about the two sides able to cut additional spending. So, if sequestration does kick in, it will cut spending further. A further credit downgrade would then become less likely.
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It was because of the debt ceiling debacle. The threat to default on our national lowered the ratings of our bonds. If sequestration occurs, the drastic cut in gov't spending will put a further drag on the recovery. Despite their proclaimed intention, the Teabaggers are economic poison.
10-06-2012, 05:18 PM
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