S&P's John Chambers today warned that S&P is likely to downgrade the US further from AA+ in the next 6-24 months depending on the outcome of November elections (i.e.- if ANYONE other than Ron Paul is elected, expect a downgrade).
The US is Greece X 100, the downward spiral has begun, only to accelerate once the Euro crisis is resolved, one way or another.
The U.S., lacking a plan to contain $1 trillion deficits, faces the prospect of another rating cut in six to 24 months depending on the outcome of November elections, according to John Chambers of Standard & Poor’s.
The U.S. has a one-in-three chance of another downgrade, Chamber said today during an S&P sponsored Webcast.
“What the U.S. needs is not so much a short-term fiscal tightening, but it has to have a credible medium-term fiscal plan,” said Chambers, managing director of sovereign ratings. “That is going to have to say something about entitlements, and that is probably going to have to say something about revenues.”