S&P Economist Explains Downgrade of US Rating

Standard & Poor’s announced Monday that they have downgraded the United States’ credit outlook from “stable” to “negative” for the first time since they began issuing those ratings in 1989. The new rating has been interpreted by many as a direct warning to the U.S. government to come up with an agreement on the debt ceiling and the federal budget  – as quickly as possible. David Wyss, Chief economist at Standard & Poor’s, New York, and Louise Story, Wall Street and finance reporter for our partner The New York Times, explain what the rating really means, and what the U.S. can do about it.