S&P’s shot across the bow

Standard & Poor’s announcement today that it lowered its outlook to negative from stable for the country’s triple-A credit rating really shouldn’t come as a surprise given that U.S. debt will soon surpass 100% of GDP.

Both sides in Congress have advanced sharply different proposals and have dug in their heels.  And with an election less than two years away, progress seems unlikely.

One can only hope that the big drop in stocks today, compliments of the S&P announcement, will spur serious negotiations and produce a credible debt reduction plan.

More on today’s S&P release at Examiner.