After months of fierce partisan debate, late last night, the House passed the bill worked out by senior congressional leaders. The vote was 269–161. One of the most memorable moments of the night was the arrival of Congresswoman Gabrielle Giffords. She was shot in the head 7 months ago and is receiving rehabilitation treatments in Houston. She has defied all odds to be in Washington D.C last night.
Back to bill, the key provisions are the reductions of about $917 billion over the next decade. No details on what government programs will be cut. To get more insights on the bill, click here.
Despite a deal to raise the debt ceiling, speculations about a lower than AAA rating continue to swirl. All three new rating agencies are not commenting on the subject right now. I can’t remember who said it best, I was watching one of the cable news network a days ago when an analyst commented one of the detrimental and unquantified impacts of this debt ceiling debate is the loss of confidence by the consumers and investors in the economy and the way elected officials handled it. Even during the lowest days of the debate, short term interest rate remained low. There were no major drops in the market signaling no major short trades. But, if this situation played out again and elected officials were slow to act once more, consumer and investor confidence level could take the hit. That is a high price to pay for a struggling economy.