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Yes, it will. Likely negative outlook within days and downgrade within a few months. This so called "compromise" compromised our credit rating so politicians could kick the can down the road and only on the surface appear to address spending without actually addressing debt.
Of course it would go down, the only way it wouldn't is if Obama was able to get 1 Trillion in extra revenue EVERY year, meaning tax raises AND couple that with MILD spending cuts in Social Security, Medicare, and Medicaid... that's what corporations would of wanted but they are not going to get... because although it will prolong the government, it would of also made Big Business a LOT of money... The only alternative is DEEP spending cuts in Social Security, Medicare, and Medicaid without revenue increases... that would also save the government for a while but corporations would not of made a lot of money off of that.... thank goodness for those stubborn Republicans... This is a country of people not a country of corporations...
I think it will be downgraded because the budget deficit will be "balanced" in 10 years and so far, no one on the Democrat side is talking about the elephant in the room. The fact that spending will increase on par with inflation, basically putting the deficit back in the red again in 10 years. So unless federal spending is frozen for the next 10 years as a part of the deal, we'll still be in a deficit and racking up even more debt. Warranting our credit rating to be lowered.
At this point, I think AA, hell even just A, is more appropriate for our credit rating
"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," the credit rating agency said in a new report. "The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high."
This will play right into the GOP's hands for MORE spending cuts.
It will probably be kept at AAA. The ratings agencies were worried about Boehner's plan and more supportive of Reid's plan. The deal reached today based off of Reid's plan cuts more and extends the debt ceiling longer, which is what the markets were seeking.
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