...that one side or both won't try to use this politically against the other, but I think it would be foolish and counter productive for whichever side does. As little credit for common sense I'm willing to give any of them at this point, I think it's possible one thing they just might find bipartisan agreement on is trying not to make politics out of the S&P rating. I suspect the move will be for a bipartisan attack on the S&P rating.
Well, it appears that the current 'solution' for the debt crisis did not impress bond holders. First, China downgrades the debt. Now a more-or-less credible rating agency downgrades the debt with a warning about future downgrade possibilities:
United States loses prized AAA credit rating from S&P | Reuters
S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government's budget deficit and rising debt burden. The action is likely to eventually raise borrowing costs for the American government, companies and consumers."The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," S&P said in a statement.The outlook on the new U.S. credit rating is "negative," S&P said in a statement, indicating another downgrade was possible in the next 12 to 18 months.
My suspicion is that each end of the political spectrum will blame the other, but IMO both sides have acted recklessly and this downgrading of US debt is probably past due based on the long term deficit with no end to deficit spending in sight regardless of who is in charge of the government.