Monster Prediction From BofA: Another US Debt Downgrade Is Coming In Just A Few Weeks

Honestly, I just don't know what to believe anymore...but this can not be good news.  What will be the effect of another US Debt Downgrade?  Can we even fathom what this will do to the already imploding economy?  How many more lies will they sell us to try and convince us that the economy is recovering when it clearly is not? 

Don't get me wrong...I really want to have a succesful business or several of them...and I am working like a madman to make a succesful run at providing for my family. So I like to keep a positive attitude if at all possible, for the future.

I guess only time will tell.

The Strong Watchman

Original article at: BusinessInsider.com

In an analyst note, Bofa/ML Ethan S. Harris drops a bit of a bombshell prediction:

We expect a moderate slowdown in the beginning of next year, as two small policy shocks—another debt downgrade and fiscal tightening—hit the economy. The “not-so-super” Deficit Commission is very unlikely to come up with a credible deficit-reduction plan. The committee is more divided than the overall Congress. Since the fall-back plan is sharp cuts in discretionary spending, the whole point of the Committee is to put taxes and entitlements on the table. However, all the Republican members have signed the Norquist “no taxes” pledge and with taxes off the table it is hard to imagine the liberal Democrats on the Committee agreeing to significant entitlement cuts. 

The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan. Hence, we expect at least one credit downgrade in late November or early December when the super Committee crashes.

Read more: http://www.businessinsider.com/huge-prediction-from-bofa-another-us-debt-downgrade-is-coming-in-just-a-few-weeks-2011-10#ixzz1bep5r3uz