Fri, Jun 24, 2011 - Page 7 News List

Democrats call for stimulus spending

DEBT DEFAULT WORRIES:The US Treasury secretary said the country could default on its loans if Congressional officials can’t overcome a budget impasse by Aug. 2

Reuters, Washington

Durbin told reporters he thought that effort could become a “two-step” process containing a “serious downpayment on the deficit” followed by more work on long-term savings.

However, others in Congress do not want to focus on the issue any longer than necessary, particularly in an election year.

Investors see a temporary fix that delayed a long-term budget plan until next year as a bad move.

They said it would likely cost the US its coveted “AAA” credit rating, raising borrowing costs and hurting the fragile economic recovery.

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