Look at this
The hot news of the night comes from S&P, which has warned that there’s a 50% chance that the US will lose its AAA rating over the next 90 days.
Obviously the debt ceiling fight as a lot to do with this, but there’s more! It seems S&P specifically wants to see $4 trillion in deficit reductions, and if this debt deal doesn’t produce that, then the US might still lose its AAA.
There’s virtually no chance of a $4 trillion deficit reduction without severe cuts to spending or tax hikes, either of which could be very negative to the economy.
$4 trillion over 10 years is virtually guaranteed to be none at all. They will backload it and it’ll never happen.