A Downgrade of US Debt Won’t Matter as Much as You Think (Good! Don't raise the debt ceiling)

cnbc ^ | 7/19/2011 | John Carney

[montanajoe]

What will hurt is the downgrades by the rating agencies, which in turn will lead to the dollar falling further, possibly prolonging the recession and a whole bunch of other financial problems that may or may not occur.

The bottom line is I'm an American before I'm a conservative. Doing anything to harm this country in a time of war either militarily, financially or otherwise makes those folks my enemy no matter what they call themselves or how stupid or deluded they may be..

[mrsmith]

I think taking on another 2.4 trillion in debt (by raising the ceiling) will give them good reason to downgrade our debt, so they might.

Of course the media makes it sound like they’ll downgrade our debt if we don’t. And maybe they will. I assume they’ll do whatever makes them the most money.
I know which action makes us truly a better credit risk but maybe that won’t matter.

[montanajoe]

I remember sitting in Hong Kong watching the local financial news when Lehman went under. The world wide effects were immediate lending between banks just stopped. Theses guys were sitting there with the entire world wide trading numbers just dead, I was wondering if I was watching the start of the second great depression live..

The point is that neither I or anyone else knows what the effect of the USA failing to raise the debt ceiling. But it is lunacy to try it and see what happens.

Cutting spending and creating jobs is the way to reduce not playing around with the debt ceiling