America’s credit rating is likely to take another hit before the end of 2011, threatening renewed market turmoil, Bank of America Merrill Lynch economists warn, LA Times reports.
In a report on Friday, BofA Merrill said it sees little hope of a breakthrough by the congressional “super committee” on deficit reduction. The bipartisan group has until Nov. 23 to identify $1.5 trillion in deficit cuts over the next 10 years -- through reduced spending, tax hikes or both.
“The ‘not-so-super’ deficit commission is very unlikely to come up with a credible deficit-reduction plan,” wrote Ethan Harris, North American economist at BofA Merrill. “The committee is more divided than the overall Congress.”
Wait..wait, there's more at http://latimesblogs.latimes.com/money_co/2011/10/us-credit-rating-debt-downgrade-warning-merrill-sp-moodys-fitch.html
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