S&P Finally Puts U.S. On Credit Watch Negative

A dose of reality is finally sinking in on Wall Street... Let's see what Washington does with it:

"NEW YORK (CNNMoney) -- Standard & Poor's lowered its outlook for the nation's long-term debt Monday, even as it reaffirmed the agency's top-tier rating for the U.S. economy.

S&P maintained its 'AAA/A-1+' credit rating on U.S. sovereign debt, saying the nation's "highly diversified" economy and "effective monetary policies" have helped support growth."


You can't run nearly $2 trillion in deficits for long before your creditors start knocking at your door. This outlook gives the U.S. a one in three chance of being downgraded within two years if it doesn't get its fiscal house in order. I give it a 100 percent chance.