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Originally Posted by seattleflamer
So is S&P saying plague to both your political houses then? If so, why the political commentary? The fact is the ceiling was raised and an agreement reached to cut ~1trillion in spending. They should be satisfied that the US is on the path to get it's fiscal house in order.
Based on S&P's logic or concern of the political situation, on November 12, 2012 they will upgrade back to AAA since, either the Democrats will have the house again or you'll see all 3 branches controlled by Republicans or neoReps.
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No, this isn't a plague on both your houses. S&P specifically blamed the Republicans for their inflexibility and unwillingness to compromise with respect to revenue increases (e.g. letting the Bush tax cuts expire):
http://www.ft.com/cms/af2c4fac-bfc2-...144feabdc0.pdf
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Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.
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