After debt deal, economy in deeper peril

[liberal N proud]

It's not over. Not by a long shot.

If the Senate Tuesday approves an 11th-hour budget deal to lift the debt ceiling, as expected, and head off a national default, forget those high-five photo ops and victorious press conferences. The spectacle of partisan bickering by a dysfunctional government will continue to weigh on consumers, investors and business for months to come.

That uncertainty will also further dampen economic growth — the most powerful remedy for the nation’s fiscal problems.

“This deal sets us up for acrimony and additional fights all the way until the elections,” said Charles Gabriel, a budget analyst at Capital Alpha Partners.

Story: Many questions linger over debt and deficit accord
After multiple failed attempts to agree on a package of spending cuts and increased borrowing authority, the House last night sent to the Senate a two-step plan. In exchange for $917 billion in spending cuts over 10 years, the debt ceiling would be lifted by $900 billion — not enough to fund the government through the 2012 elections.

http://www.msnbc.msn.com/id/43976115/ns/business-eye_on_the_economy/