why is it so hard to understand? private sector deleveraging started in 2008. public sector deleveraging just started this month. no more white knight to come to rescue. Bernanke put expired yesterday too. who do you count on now? all the big guys know shoot first, ask questions later.
it is the congress, aka US poeple, who decides the debt ceiling. US people are tired of printing money to push up asset prices to benefit selected groups of people, but no real benefit to the economy. S&P rating is minor.