American Debt Ceiling Debate- Default on August 2nd Looming

[Slathar]

http://www.washingtonpost.com/busine...31H_story.html

Much of the article talks about raising the debt ceiling by August 2nd or else America will default on the current debt. I see that this move is necessary to prevent another economic crash, but all this does is raise the amount that we can borrow. It does nothing to combat America's spiraling debt. The fact that so much of it has become politicized is problematic. Spending has to be cut from entitlements (SS, Medicare, etc), national defense, and everywhere else.

This is where things begin to look bad or even worse than bad. A default on a loan not only would lower America's triple AAA credit rating but it would shoot the stock market in the foot and stifle any hope for job creation. How this is combatted by Washington will determine how bad the 'fallout' is.