http://www.latimes.com/business/la-fi-us-debt-downgrade-20110806,0,189756.story

And some people were blaming the debt ceiling debate.  Truth was, the debt ceiling debate was the only way we had a chance of preventing the downgrade by cutting spending enough... had it not been for that, our credit rating would of been downgraded before we even had a decent debate on spending cuts.

Just more negatives from the stimulus.

What does this mean for the USA? More expensive loans?

"The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy."

meaning that the debt should have never been used as a bargaining tool. Thats why they lowered it. it should have been raised and not used as a way to take from the poor. This was warned by democrates and progressives.  However republicans can't see that what they have done is suicide for americans and they have succeeded.

"The political brinkmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective and less predictable than what we previously believed," said S&P, one of three leading credit rating agencies."

Reread the article. It all points to republicans holding this country hostage.

To sum up : A retard tells everybody : 'You can't pay your debts' and everybody believes it.

S&P is the Metacritic of economist, with all its retardiness and bias

It's not spending cuts that need to happen, Ok I agree that the wars need to end. It's the bush tax cuts that Rep. said they needed to create jobs. But here's the real deal. You put the money into people hands that need it and they will spend it. It's simple logic and it will create jobs from demand. The tax breaks and loop holes to the rich are not working. REP. are responsible for about 10 trillion dollars of the debt.

http://www.youtube.com/watch?v=mcJqnmBzor4&feature=player_embedded

http://www.youtube.com/thomhartmann#p/u/3/zCEtMQ5wE78

"S&P initially made a $2-trillion miscalculation in its economic projections, which administration officials noticed Friday afternoon when the firm shared its analysis with them before publicly releasing it, said a person familiar with the situation who requested anonymity because of the sensitivity of the matter.

But S&P would not agree to change its rating or take more time to do a new analysis, the person said.

"A judgment flawed by a $2-trillion error speaks for itself," said a Treasury Department spokesperson.

S&P said it agreed to change the economic projections but that it did not affect the ratings decision."

Interesting. You make a $2 trillion dollar error in your calculations and you don't re-analyse your data and have a 2nd thought about the downgrade?

Conservatives won't admit it, but the fact that congress / POTUS have no chance of raising revenues must be part of the reason behind this. The debt / deficit situation is so bad in the USA that merely cutting spending isn't going to be enough. Revenues need to be increased modestly at the same time as spending is reduced. After all, the govt has to both stop (or drastically reduce) borrowing at the same time as having the money to start paying off a bit of debt. You can't do that just by cutting spending or else the spending cuts are going to have to eat into federal spending that no one wants to reduce.

Interesting times.

http://www.youtube.com/watch?v=mcJqnmBzor4&feature=player_embedded

You let the bush tax cuts expire and there is 4 trillion of the dollars coming back in. end the wars.

http://www.youtube.com/watch?v=kP0ygzR3L5w&feature=player_embedded#at=405

http://www.youtube.com/watch?v=kP0ygzR3L5w&feature=player_embedded#at=405