Tuesday, April 19, 2011

U.S. deficit clock 'now ticking loudly' after S&P downgrade

S&P hits U.S.
Standard & Poor`s dropped a bombshell into the U.S. budget debate today, downgrading the outlook for America`s debt to "negative" from "stable" and raising the stakes markedly.
 
``There have been rumblings about the U.S. credit rating for the past two years, and Moody`s warned earlier this year that the rating could be downgraded if progress is not soon made on the $1.5-trillion budget deficit,`` said Douglas Porter, deputy chief economist at BMO Nesbitt Burns.

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