U.S. Debt Outlook Is Negative

Wall Street Shares Slump As S&P Downgrades US Debt Outlook -- The Guardian

Ratings agency cuts long-term outlook from stable to negative for first time since Pearl Harbor attack 70 years ago.

Shares fell heavily on Wall Street on Monday after a leading ratings agency fanned fears of Europe's debt crisis spreading across the Atlantic by issuing a strong warning about America's failure to tackle its budget deficit.

In a move seen by Wall Street as a "shot across the bows" of bickering politicians in Washington, Standard and Poor's (S&P) said it was cutting the outlook on the US's long-term rating from stable to negative for the first time since the attack on Pearl Harbor 70 years ago.

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More News On Warnings About U.S. Debt

S&P threatens to cut U.S. credit rating on deficit -- Yahoo News/AP
S&P threatens to cut U.S. credit rating on deficit -- Yahoo News/Reuters
'Negative' Rating for U.S. Debt Sends Jolt Through Capitol Hill Debate on Debt Ceiling -- FOX News
Surprise warning on U.S. debt comes as Washington inches away from gridlock -- L.A. Times
U.S. Warned on Debt Load -- Wall Street Journal
S&P sounds alarm on US debt -- Financial Times
ABCs of S&P Changing Ratings Outlook to 'Negative' -- Wall Street Journal
Analysis: Obama plays down S&P outlook change -- Reuters
US credit rating: Congress has many debt plans, but will it heed warning? -- Christian Science Monitor

My Comment: Solve the problem now .... or face massive problems later. My bet .... the White House and Congress are going to kick this problem to after 2012 (i.e. after the elections). Is this a smart move .... not at all, and fortunately many Americans are now aware of what is happening.