Baucus Comments On The Battle Over The Debt Limit
David Bears may be the most influential political commentator in the U.S. right now, as the London based managing director of sovereign credit ratings, at Standard and Poor’s. He will help determine whether the U.S. government's credit rating will be downgraded, as a result of the battle over raising the debt limit. A decision to cut the government's credit rating would likely increase treasury rates by 60 to 70 basis points, over the medium term, raising the nation's borrowing costs by $100 billion a year. What could this mean? Montana's Senator, and head of the Senate Finance Committee, Max Baucus explains.
If the debt ceiling is not raised by August 2nd, the Treasury Department says the U.S. government will not have enough revenue coming in to cover its obligations.