Business Leaders Resigned to U.S. Debt Downgrade but Say Default Unlikely

[ej510]

Source: AdvisorOne

With a House vote on Speaker John Boehner's plan to lift the debt ceiling expected after the market close on Thursday, the business community is battening down the hatches for a U.S. debt rating downgrade—and they’re not happy about damage that the oncoming economic storm will wreak on investors.

An ad hoc coalition of asset managers, investment advisors and pension plans on Tuesday sent an open letter to President Barack Obama and members of Congress, begging them to “fix the deficit for real” and act now to raise the debt ceiling.

“Addressing the current federal debt ceiling crisis, by itself, will not fix the entire problem. We would be deluding ourselves as a nation. If we want strong economic growth and job creation we must fix the deficit for real, for good, for the future of all Americans,” said the coalition in its letter. “As a debtor nation, America must show the world that the nation's word is its bond. Raising the debt ceiling is vitally important, but that alone is not enough. The huge budget deficit, both current and long-range, must be dealt with urgently as well.”

The coalition is comprised of a diverse group that includes asset management giant BlackRock, Commonwealth Financial Network, Legg Mason, LPL Financial, Raymond James, Verizon, the North Carolina Retirement System, the Florida State Board of Administration, the New Jersey Division of Investment and the Teachers Retirement System of Texas.

Read more: http://www.advisorone.com/2011/07/28/business-leaders-resigned-to-us-debt-downgrade-but

[county worker]

1. They need to address their letter to the tea party not to Obama

[freshwest]

7. +1,000,000. They voted in this mess.

[texanwitch]

2. Talk to the Republicans, they are the ones doing this.

My neighbor the Republican is sweating this out, he is on SS.

I told him it is your party doing this.

[ej510]

3. He won't believe you.

[texanwitch]

4. He watches Fox.

I will keep telling him, maybe it will sink in.

I told him how are you enjoying the tea party folks now.

He didn't like it.

[freshwest]

8. Quote his Tea Party heroes to him. I'm stunned to see polls supporting this from FOX.

Exactly who did he think was going to get cut? The unworthy ones?

[neoralme]

5. So the crooked rating agencies downgrade the US credit rating, then

the Republicans cut even more of entitlements to bring it back up. That's what's going to happen. And what will we do? We'll email Bernie Sanders while the Republicans party.

[dixiegrrrrl]

6. "We hit an iceberg but sinking is unlikely."

Do they not remember that credit downgrade was ALSO an "unlikely" concept a few months ago.?