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However, the prevailing wisdom was that there wasn't going to be a debt ceiling debate similar to two years ago where the fight went right up to the edge of default, arguably causing Standards & Poor's to downgrade US.
Cheers all, GW Updated at 2.35pm BST 2.10pm BST Moody's threatens to downgrade US over debt mountain Rating agency Moody's has warned that it could cut the US's AAA credit rating unless America's government comes up with a serious plan next year to bring its national debt under control.
I believe Wall Street could look at this and decide to downgrade us tomorrow.
Yet, it matters little that the two other giant rating agencies did not downgrade US debt as S&P did.
Somehow, by the fourth paragraph concerns about a rise in taxes and a fall in spending depressing demand have turned into bond-vigilante fearmongering, with a warning that Moody's might downgrade US bonds and send interest rates up.
S&P said it could downgrade US debt "by one or more notches... if we conclude that Congress and the administration have not achieved a credible solution to the rising US government debt burden and are not likely to achieve one in the foreseeable future".
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Moody's downgraded us because Osborne is making less progress in cutting borrowing than expected.
"But our model massively downgraded us because we were super lucky.
"That supports S.& P.'s contention behind why they downgraded us in the first place and perhaps justifies in their minds an additional downgrade.
Amid wild swings almost every day in the wake of Standard & Poor's downgrading US debt and worries about the Eurozone debt crisis moving on to France, it traded in a 529 point range, falling as low as 4791.
The withdrawal of the ambassador effectively downgraded US diplomatic representation in Syria to the level of charge d'affaires, but there remains a sizeable number of staff at the embassy.
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