Downgrade Day: What It Will Look Like

http://www.foxbusiness.com/markets/2011/07/27/us-credit-downgrade-impact-swift-and-severe/?test=MM

QUOTE: "The once-unthinkable is now looking more like all-but-inevitable: the United States is probably going to lose its top-notch credit rating. And make no mistake: the economic impact should the country be stripped of its coveted triple-A rating will be swift and severe. Stocks and bonds will likely tumble and interest rates will jump higher. There will be no lag time between the downgrade announcement and when the shock waves begin to be felt. 
“It starts instantaneously,” said Greg McBride, senior financial analyst at Bankrate.com. “You won’t be able to grab a cup of coffee before the selloff gets underway.” All of the big three credit rating firms – Standard & Poor’s, Moody’s Investor Services and Fitch – are threatening to downgrade U.S. debt if Congress fails to address the massive debt load and budget deficits that imperil this country’s long-term financial stability. With the bickering in Washington, D.C., reaching a fever pitch this week there is growing sentiment that a downgrade is imminent."

So there's the tinfoil hat part of me wondering if we are going to see a default/downgrade in order to place the blame for poor economic performance on that event and take the focus away from the policies of the past three years.  I know that seems a bit nutty, but think about it....  If you're the current occupant of the White House do you think you're going to win in 2012 running on your record?  You might be looking for a game-changer and considering how the 1995 US Government Shutdown went you might be willing to take your chances.

All I'm really saying is prepare for the worst outcome of all this and hope/pray for the best outcome to somehow materialize.