Do We Have Your Attention Now?

This is a clear warning shot across this country’s economic bow and definitely not a good development.

U.S. Warned on Debt Load

A blunt warning Monday from a credit rating firm about the U.S. government’s mounting debt pushed stock markets lower and intensified political divisions in Washington about how best to tackle growing deficits.

Both the Obama administration and House Republicans scrambled to gain leverage from Standard & Poor’s changing its outlook on U.S. Treasury securities to “negative” from “stable.”

S&P didn’t lower its top-notch AAA-bond rating for U.S. government Treasury securities, and their prices initially fell but later rebounded amid optimism that the report could serve as a catalyst to force both sides in Washington to compromise.

See also:
US faces credit downgrade if debt not cut
UPDATE 3-White House, Congress under pressure from S&P move
S&P’s warning to Uncle Sam
Stocks sink after S&P downgrades US outlook
S&P Downgrade Of U.S. Debt Says Nothing New
Outlook change stokes political battle over US debt
JP Morgan’s Comments on the SP Downgrade…. “fiscal issues are serious”
Analysis: Obama plays down S&P outlook change
White House calls S&P downgrade political judgment
House Dems insist S&P warning means Congress should raise debt ceiling, no strings attached

Boy, all I can say is that Obama and Congress had better get off their asses and do something substantial to get our national debt problem under control. And they need to do it soon.

/and if you think we have serious fiscal problems now, just wait and see what happens if we ever lose our AAA rating, it will not be pretty