We knew this was coming.
Congress and the White House was warned back in April.
The credit rating agency said that it is cutting America’s top AAA rating by one notch to AA-plus. The credit agency said that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country’s debt situation.
The ‘Super committee’ had best find a way to work together and find some serious cuts. I am not optimistic. Neither are a few other people.
In its statement, S&P said that it had changed its view “of the difficulties of bridging the gulf between the political parties” over a credible deficit reduction plan.
S&P said it was now “pessimistic about the capacity of Congress and the administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government’s debt dynamics anytime soon.”
Hang on kids, it is going to be a rough ride for the next year or so.