Several economists are speculating that the credit rating for the United States could possibly be reduced even if an agreement is reached to raise the debt limit before next week's deadline. Some say, however, that a downgrade isn't the death sentence several make it out to be. It Seems like every few hours we are assured that this or that compromise was reached, only to have this "deal" broken shortly after. Realistically, the debt ceiling is not the issue here, it will be lifted. Rather, the future budget cuts as conditions to the agreement, are the real obstacle here. Once the negotiators work out the details, there will be a period of time during which analysts debate their impact, possibly creating increased volatility. The proof is here: U.S. credit rating may be downgraded even if debt ceiling not increased
