Timmy and the Socialist Banking Network get a warning

Standard & Poor’s put a “negative” outlook on the U.S. AAA credit rating, citing rising budget deficits and debt.

“We believe there is a material risk that U.S. policy makers might not reach an agreement on how to address medium-and long-term budgetary challenges by 2013,” New York-based S&P said in a report today. “If an agreement is not reached and meaningful implementation does not begin by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer ‘AAA’ sovereigns.”

Not enough foreigners willing to invest in American entitlements.

 Bloomberg includes this nugget:

The Treasury Department projected that the government may reach the $14.3 trillion debt ceiling limit as soon as mid-May and run out of options for avoiding default by early July.

The Senate is back to the three week budgeting cycle.

If you believe Mark Zandi:

Last week, Moody’s Investors Service said Obama’s plan to cut $4 trillion in cumulative deficits within 12 years may be a “positive” for the nation’s credit quality and mark a reversal in the budget debate.

But this Moody's under Mark Zandi is the same Moody's that feels out future depends on hundreds of thousands of federal workers in Eric Cantor's Virginia district. I don't think so, S&P has it right, Moody has gone political.