American Morning
What would a U.S. credit downgrade mean for the economy and the average American?
As fears continue to rise about the U.S. defaulting if lawmakers fail to hash out a plan to raise the U.S. debt ceiling, concerns are also escalating about a potential downgrade of the U.S. credit rating.
Rating agencies - Standard & Poor's, Moody's and Fitch - analyze risk and give debt a "grade" that reflects the borrower's ability to pay the underlying loans.
The U.S. has had the highest credit rating, AAA, since Moody's began assigning ratings in 1917. However, this may change in the near future.
Paul La Monica, assistant managing editor for CNN Money, joins Ali Velshi today on American Morning to weigh in on what a downgrade would mean in terms of U.S. Treasuries, the U.S. consumer and the overall economy.
Rep. Flake: 'We ought to at least have a bill that doesn't get us further down the road'
House Republican leaders were forced to delay a vote on Speaker John Boehner's plan to raise the nation's debt ceiling last night after conservative lawmakers expressed skepticism about the bill and the Congressional Budget Office estimated that the the plan would reduce deficits by only $851 billion over 10 years.
Speaker Boehner announced today that he will rewrite his legislation to ensure that it meets his oft-stated pledge to cut spending more than Congress increases the federal borrowing limit.
Jeff Flake from Arizona, member of the Appropriations Committee, is one of the House Republicans who has come out against the Speaker's bill.
Today on American Morning, Flake joins Kiran Chetry to weigh in on why he is not supporting the bill and to discuss what compromises are necessary in order to secure his vote on a debt-ceiling bill.
Governor Rick Scott: 'We cannot continue to borrow money'
The ongoing debate in Washington over whether to raise the federal debt ceiling has many governors from both parties worrying about how the negotiations will affect state finances.
However, Republican Governor Rick Scott of Florida seems less concerned then others about a potential default, telling reporters yesterday that failing to raise the debt-ceiling would have a "minimal" effect on state governments and financial markets.
Scott joins Christine Romans on American Morning today to describe why he would not raise the federal debt ceiling and to discuss why he thinks that the government must prioritize spending and stop borrowing money.
David Gergen: Debt talk fallout 'is a self-inflicted wound'
Early on Monday, Democratic and Republican congressional leaders unveiled separate debt proposals that the other side quickly rejected, demonstrating the deep partisan divide that exists despite months of negotiation.
Both plans provide a path to raise the debt ceiling through the end of 2012, but they differ in scope and over key components involving requirements for future congressional action.
Both President Obama and House Speaker John Boehner addressed the country last night about the impasse in the debt talks.
Today on American Morning, David Gergen spoke with Kiran Chetry about his reaction to the speeches and the likelihood that a deal will be reached, stressing the importance of maintaining the U.S. credit rating.
Gene Sperling: 'We just need a minimum amount of compromise'
Last night, President Obama called for "a balanced approach" to addressing the nation's deficit that includes large spending cuts along with revenue hikes - including a halt to Bush-era tax cuts for families earning more than $250,000 a year.
House Speaker John Boehner showed no sign of moving off his party's opposition to any kind of increase in taxes, signaling that there is still a great divide amongst lawmakers about the correct way to address the nation's debt.
Today on American Morning, President Obama's top economic adviser Gene Sperling spoke with Ali Velshi about the possibility of a compromise in the debt-ceiling negotiations, appearing to remain optimistic despite the continuing impasse in negotiations.
"There is a lot of goodwill that I still believe exists in this country in Washington and we just need a basic, a minimum amount of compromise," Sperling, Director of the National Economic Council, told Velshi. "A minimum amount of not my way or the highway and we can get there easily this week."
Political Panel: Is there time left for a grand compromise in debt talks?
The political showdown on the debt-ceiling negotiations continued last night after months of increasingly tense talks have failed to bring a deal that can win approval from all of the necessary players - the Republican-led House, Democratic-led Senate and the White House.
Obama has pushed for a comprehensive plan that included spending cuts, increased tax revenue and entitlement reforms, while Republicans have sought to shrink government by proposing spending cuts and reforms without increased revenue.
CNN senior political analyst Ron Brownstein and Norman Ornstein, resident scholar at the American Enterprise Institute, joined Ali Velshi and Christine Romans on American Morning today to discuss the various plans being proposed on Capitol Hill and to weigh in on America's growing exasperation with the stalemate.
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