Debt Ceiling Charade: S&P places U.S. on Credit Watch Negative, Possible Debt Deal taking shape

Friday, July 15, 2011
By Paul Martin

By CalculatedRisk.com

From MarketWatch: S&P warns on U.S. debt, 50% chance of downgrade

Standard & Poor’s Ratings Services said late Thursday it has placed U.S. sovereign credit ratings on watch for possible downgrade, saying the action “signals our view that, owing to the dynamics of the political debate on the debt ceiling, there is at least a one-in-two likelihood that we could lower the long-term rating on the U.S. within the next 90 days.”
Ezra Klein has some details on The debt deal that’s taking shape, and its drawbacks
I still think something will be worked out, but this interview with Stan Collender is a little scary. First on a meeting he had with some new representatives back in February:
What I took from that was, first, that the debt ceiling was going to be a lot more trouble than anyone realized. They did not want a negotiation there. There was a religious-like fervor on that point: Voting for the debt ceiling was a sin, and you can’t just sin a little.

The Rest…HERE

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