MORE ON S&P US DEBT DOWNGRADE

http://news.yahoo.com/p-downgrades-us-credit-rating-080422314.html

"The back and forth came after Standard & Poor's, one of the world's three major credit rating agencies, cited "difficulties in bridging the gulf between political parties" as a major reason for the downgrade from U.S.'s top shelf AAA status to AA+, the next level down. The rating agency has essentially lost faith in Washington's ability to work together to address its debt.

The downgrade, hours after markets closed on Friday, is a first for the U.S. since it was granted an AAA rating in 1917. S&P warned about a downgrade as far back as April. Its decision came just four days after fractious debate over raising the nation's debt ceiling ended in a compromise that would reduce the country's debt by more than $2 trillion (€1.41 trillion). S&P said Friday the cuts did not go far enough.

Both political parties used S&P's report to buffet their policy cases and attack the other side."