John and Mary sell the Mercedes

S'plain this Lucy Congress ditches Obama on debt talks

I found this Politico article pretty interesting when I read it this morning, especially where Pelosi had to march Harry Reid out by the scruff of the neck to keep his head from doing a 360.  He's furious that Republicans are only talking short-term debt ceiling at best. Just after I read it, Roll Call reported that Obama will veto any short term extension.  Democrats want spending maintained through the 2012 election.  How obvious can they get? But there was something else that's been bugging me.  This. John and Mary are spoiled Gen-X brats who are used to having stuff now.   While John earns a mid six-figure income, they are drowning in debt.    Finally, unable to sleep at night, they've  decided to get a grip.  They'll have to sell their home in Potomac, MD and move to Prince George's County,  where homes are cheaper and his commute to work much shorter.  Their daughters, age 13 and 15, are still crying hysterically as we speak with the news that Bullis Prep is out, and public school in.  Mary, a proliferate spender,  sobs as well while taking scissors to about a dozen credit cards.  Depending on what their home sells for, John figures that they can become solvent in from 5 to 8 years.  He calls his mortgage company, bank, credit card companies and other debtors and petitions them.  He assures that monthly interest payments will be paid promptly, with payment on the principal rationed for the time being.  Here's the responses. The Mortgage Holder: "Yes, but only if you take out a third mortgage with us." The Credit Card Company: "Yes, but only if you increase your average monthly purchases," The Car Loan Company:  "Yes, but only if you trade in for a new Mercedes S600 sedan." Mookys Rating Se vice:  Unless you take out additional loans in order to keep spending up, your credit rating will be lowered and you'll have to get credit from Crazy Al's Finance. Ridiculous?  Of course.  So explain  this to me. “ With rating agencies warning about downgrading the United States’ credit, which could lead to a surge in interest rates and a shock to the markets, (if the debt limit isn't raised) ” Am I missing something?   I'm not the only one at sea here, pretty sure of that.  Remember, we are in good shape when it comes to meeting our interest obligations - as long as we sell the Mercedes, send the kids to public school, and quit  hiring  pool-boys and  French chefs.  So what's with the threats from ratings services like Moodys and S&P?  Raise your debt limit or else ... .?                           Real Question