Ouch

U.S. Could Still Lose Credit Rating

Has all this drama been for nothing? Some analysts say yes: The U.S. could still lose its triple-A credit rating even after a last-minute debt deal was reached Sunday night. The proposed $2.4 trillion in cuts over the next decade—especially with so many cuts occurring later—could have only a “minimal impact” on the economy, said University of Maryland professor Peter Morici. About $1.5 trillion of the planned savings will be decided by a bipartisan congressional committee, leaving questions about whether U.S. politicians will agree on how to lower the country’s debt. Even with the bleak outlook, Asian markets opened higher Monday on the news of the debt deal.