AAA Top AA+

The downgrading of U.S. debt to AA+ from AAA touched off a weekend of political backbiting. Democrats and Republicans blamed one another for conditions leading to the downgrade. Standard and Poor's stands by its rating despite angry criticism from Treasury Secretary Timothy Geithner, and S&P even said another downgrade is possible. Meanwhile, Geithner has agreed to stay on the job through the end of President Barack Obama's term. When Congress returns after Labor Day, it will take up federal spending for 2012. With all entitlement spending off limits, agency operational budgets will likely take all of the hits.