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发表于 2011-7-28 11:07 AM
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S&P walking back from downgrade
7/28/2011 11:56 AM EDT
The press is widely reporting that S&P has backed down a bit from the "yellow line" of $4 trillion in deficit cuts in order for the U.S. to retain a AAA-rating. They merely say it will take a "credible plan." Still, I think this really only buys us time and doesn't change the underlying situation. If we get some sort of debt ceiling increase coupled with minor spending cuts (i.e., the Boehner plan) then Congress will pretty rapidly have to come up with substantial additional cuts/revenues, I'd say within 3 months. Reality is that the ceiling increase being contemplated by Boehner in the "first leg" will probably only last 5 months or so. We might have about that much time to avert a downgrade, but between then and now, Congress needs to come together. Call me very doubtful. |
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