MINNEAPOLIS (WCCO) — As politicians in Washington D.C. fight like children in a sandbox that is too small, the nation waits for a deal that will avoid a national default.

With default would come a downgrade by the nation’s credit rating agencies, and with that higher interest rates on that national debt. There will also be rising interest rates for consumers that will affect everything from car loans, credit cards and adjustable rate mortgages.

This, at a time when the latest data shows the economy grew at just 1.9 percent in the last quarter and unemployment sits at more than 9 percent.

Then of course there is the stock market, which has declined six days in a row but so far has avoided a total meltdown. Are millions of investors, large and small, facing losses like the ones we saw when the market crashed in the fall of 2008? We’ll see.

A lot depends on those children in the sandbox in Washington D.C. Whatever their beliefs, it is baffling that their seems to be no move to compromise merely for the sake of  avoiding additional, staggering financial pain on millions of Americans.

Esme Murphy

Comments (10)
  1. KLS says:

    Worry about jobs and the economy before worryings about the deficit. When people are back to work and business is hiring and working instead of hoarding, then we can worry about the deficits that we have been left by the free wheeling republicans. Until then increase the debt ceiling. Stop acting like children who will hold their breath if they don’t get their wasy.

  2. chinwhiskers says:

    Sandbox mentality. I am 100% right, so you are 100% wrong instead of Well, you do have a point there… I could live with x, but I think y is more important than z… Great statesmen find a way to bring together opposing sides. We’ve had too much “I have power so I’m going to cram it down your unwilling throats” from our National & State politocos. At least at the sandbox Mom can step in.

  3. Tony Rozycki says:

    Most any perceived success for President Obama will increase his odds of being reelected in 2012. To me that’s the heart of the problem.

    Ever since 9th grade I believed Abe Lincoln said, “You can’t compromise if you know you’re right.” Now I can’t find any verification of that. He apparently did make pro-compromise statements. Abe saved the Union, tho at a huge price in American blood.

  4. Larry Burke says:

    I just watched your interview with Erik Paulson. It was another example of the right wing ignoring the question and pretending that their spiel is an answer. They learn this well from their leader Michelle Bachmann.
    When you asked Paulson how concerned he was about the troops getting paid, he ignored the question and went on about spending and banks etc.
    I wish you would have asked him if this meant that he ahd no concerns about the troops getting paid.

  5. bruce says:

    Why on such a important weekend are the Rep. for MN not in Washington dealing with the problems???

  6. progressive america says:

    In my opinion, this is just one more of the many systematic moves by the GOP to weaken the middle class. They started by weakening unions, then ensuring that voting restrictions and suppression for democratic leaning voters. With this move they ensure that the economy will worsen which hurts lower income to middle class Americans the most. The rich, super rich and the wealthy corporations only stand to benefit. They have done quite well through the current economic situation so it can only get better for them the worst it is for the rest of us. The richest americans and corporations have seen their net worth increase over the past 4 years while the rest of have suffered. In the end the GOP believes a weaker economy increases their chances of winning in 2012.

  7. Malthus says:

    Did the Democrats really believe their drunken orgy of irresponsible spending would have no consequences?

    The best thing for the country would be to default and have it’s credit rating lowered. The shared pain would hopefully teach people not to elect marxists, socialists and other various idiots into positions of power.

  8. richard says:

    There will be a day of rekoning in Nov. 2012. We will remember that the repubs and teabaggers put power and loylaty to the wealthy and corporations ahead of the poor and middle earners of this country. They have yet to say YES to ANYTHING the president has asked for. I can’t wait fot the shoe to be on the other foot.

    1. progressive america says:

      I completely agree. The Repubs will do anything to ensure the failure of the current administration. They will sink Obama’s ship at any cost. Just look at the current citation. Republicans took our weak economy hostage, threatening to drive us off the cliff if we dared to raise taxes on the richest 2%. Yes even though this should be a hot topic it isn’t.
      They fought tooth and nail to prevent the top 2% from paying a single dollar more in taxes. I just hope that something good comes from all this; that people open their eyes and become much more involved and those who didn’t have a clue get a clue.

  9. StraycatStrut says:

    Esme: Time for a Reality Check on the debt train zipping by at $4 billion per day with trying to help everyone in sight as homes lose value, jobs left the country, the threat of taxes are raised in recession times, the left constantly whinning, printed greenbacks with no backup, Gitmo still around, borders not being enforced, States being sued by Holder, a celebrity Pres giving time more to “The View” then say the State of AZ and its problems, the War continues, a drone Pres with unconstitutional authority in Lybia, a volital stock market, terrible unemployment ……… the Train will crash…. as even with Democratic tax hikes… will not even come close to paying the debt. Stock up now and forever hold your ground. The Train will derail and is going to crash.