Basically, except from some expected sell-off in stocks, the article states that every adverse outcome is either dubious or would be countered by US regulators and institutions. If the situation is so rosy, why are the US lawmakers even considering paying their debt and reducing deficit? After reading this analysis, they should raise teh ceiling to a quadrillion dollars and stop bickering about raising taxes or cutting spending.
What Happens If the US Is Downgraded?
Implications of a US Downgrade It appears that politicians in Washington, D.C., are moving closer to a deal that would extend the ability of the government to borrow money beyond August—preventing a default on U.S. government bonds or other obligations. But even if the U.S. debt ceiling is raised, a short-term deal that does little to raise revenue or cut spending might result in a downgrade of the country's long-term debt Moody’s and Standard & Poor’s might decide that the failure to produce a longer-term solution to the U.S. debt burden indicates that the country's debt is riskier and its credit rating must be ... (full story)