- "The United States would immediately have its top-notch credit rating slashed to "selective default" if it misses a debt payment on August 4," Standard & Poor's managing director John Chambers told Reuters.
- "Chambers, who is also the chairman of S&P's sovereign ratings committee, said on Tuesday that U.S. Treasury bills maturing on August 4 would be rated 'D' (the lowest S&P rating) if the government fails to honor them. Unaffected Treasuries would be downgraded as well, but not as sharply", he said.
Clearly lack of a deal between democrats and republicans would severely damage the economy. What needs to happen is a compromise. This compromise would give the democrats the closure of corporate loopholes to increase revenue, but no current increase in the marginal individual tax rates. In return the democrats must agree to deep spending cuts along with entitlement reform. Everybody gets something, nobody gets everything which makes everybody unhappy. However, they have to make this compromise for the good of the american people in the long run.
Lets hope that Rep. Boehner and President Obama make significant progress tonight.
- Citation: Walter Reuter, and Carol Bishopric. "Exclusive: S&P to Deeply Cut U.S. Ratings If Debt Payment Missed." Chicagotribune.com. 30 June 2011. Web. 30 June 2011. <http://www.chicagotribune.com/business/sns-rt-us-usa-debt-sandptre75s5gv-20110630,0,7517135.story>.