S&P downgrades the U.S.'s Outlook to Negative

Kevin Brady - "Very large budget deficits and rising government indebtedness" are cited as reasons for Standard & Poors decision to downgrade the United States economic outlook to negative. "America's dangerous deficits have come home to roost," said Joint Economic Committee Vice Chairman Kevin Brady. "Standard & Poors is comparing our nation's deficits and debts to our AAA peers and finding reason for concern."

Last week, the House passed the Ryan Republican Budget plan which would cut government spending by $6.2 trillion over the next ten years and lower the deficit by over $4 trillion compared with the President's budget. "Today's news from S&P should be a wakeup call for the Senate and the White House," added Brady, a Texas Republican. "President Obama needs to stop ridiculing Rep. Ryan's plan which begins to seriously address our country's long term spending issues and start supporting it as the best way forward."

S&P said today their move signals there's at least a one-in-three chance that the United States' long term rating could fall within two years.