Sunday, April 10, 2011

Are we done yet? Shutdowns, budgets, and debt ceilings...

The fight just gets dumber (By Jeanne Sahadi, senior writer First Published: April 8, 2011: 7:25 AM ET)

A good article on the current budget situation and where we are going from here as the need to increase the government's debt ceiling approaches next month.

From the article:

Given the persistent push for spending cuts by the newest and most conservative lawmakers, that 2012 debate will now be tied to a vote over increasing the debt ceiling, which is the country's legal borrowing limit.

The Treasury Department estimates that it will be hit no later than May 16. The consequences for the economy if the ceiling isn't raised would be far worse than anything a government shutdown might yield because it would eventually cause investors to question U.S. creditworthiness.

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