Durbin, Kirk: Eliminating Debt Ceiling Is A Bad Idea

WASHINGTON (CBS) — Ratings agency Moody’s believes if the U.S. eliminates the debt ceiling, it would reduce the uncertainty amongst bond holders.

But U.S. Senators Mark Kirk (R-Ill.) and Dick Durbin (D-Ill.) both say the suggestion would do major damage to the economy.

LISTEN: Newsradio 780’s Mary Frances Bragiel reports

As WBBM Newsradio 780’s Mary Frances Bragiel reports, the argument behind Moody’s suggestion, according to an analyst, is that a limit on the debt ceiling raises periodic uncertainty, and an elimination could possibly end that problem.

Kirk says the idea is nonsense, because the U.S. already needs more spending control, not less. He points to the economic collapse in Ireland, and the fact that other countries stopped lending money.

“Interest rates went up so fast, so quickly, that 40 percent of family mortgages in Ireland disappeared over a weekend,” he said.

Durbin, who believes raising the debt ceiling is the only alternative, says he doesn’t know how it could be eliminated.

“To just declare that it’s over and to ignore it is to ignore the reality – you need to borrow more money,” he said.

Click here for a breakdown of 18 scary U.S. debt facts.

  • Linda

    Who the heck is Moodys anyway? They need to stop playing obamas scare tactic card and shut-up. Lower our credit rating, who cares, then maybe we would stop supporting other countries and start supporting our own for a change.

  • working man

    The banks will use this credit rating to hold back money more that will stop jobs, home lones, more layoffs THATS WHO CARES.

  • nancyjrosen

    enough…get something done…you and the other senators are not worth our votes

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