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Those downgrades did not lead to a debt spiral.
Moody's said it was concerned that the government was taking steps that could lead to a debt default.
And Mr. Hevesi has said that current capital spending commitments will lead to a debt service obligation of $5.1 billion in the year 2005.
But continued borrowing at projected rates will lead to a debt crisis, soaring interest rates and a plummeting dollar that could precipitate a deeper recession and destroy even more jobs.
Financial regulators across Europe were last night carefully monitoring the health of their heavily exposed banks, amid concern that the turmoil could lead to a debt default, or even the break-up of the euro.
The stock market began the week in a funk and ended in subdued celebration as apparent progress in the debt-ceiling impasse seemed to confirm the Wall Street consensus that dysfunction in Washington won't lead to a debt default or set off a global cataclysm.
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While he said he thought spending caps were the most expedient solution, he said he was simply looking for an approach that could lead to a debt-limit increase and deficit controls.
The long 1990s recession had a profound cultural impact on Canada that lead to a debt-aversion in both public spending and the financial centre: it was this that enabled Canada to avoid the worst of the recession, although the impact of America's recession – Canada's main trading partner – took its toll in 2008 and 2009.
The chancellor has also put himself at odds with the business secretary, Vince Cable, by bringing forward plans for a state-backed £12bn mortgage guarantee scheme that some Liberal Democrats and economists fear will lead to a debt-fuelled boom based on escalating house prices in southern England.
Instead of comparing his financial flameout, which he said has led to a debt of about $300,000, to, say, John Z. DeLorean or Bear Stearns, he invokes John Coltrane.
This would lead to a European debt union.
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