By Tim Reid, Richard Cowan and Walter Brandimarte

Reuters

Oct. 27, 2011

"The reaction to the S&P downgrade has reduced the fear factor on Capitol Hill," said Steve Bell of the Bipartisan Policy Center, which has been urging lawmakers to come up with a broad deficit-reduction plan.

Bell, who supported the S&P downgrade because he thought it would galvanize Congress to deal with deficits, said he had spoken recently with half-a-dozen senior congressional staff members from both parties.

"I was surprised by the nonchalance" to the prospect of another downgrade, Bell said. "The attitude on the Hill is, 'Treasuries are the safest place to put money at the moment, because look what happened after the S&P downgrade.' It is the worst possible outcome from the debt limit crisis."

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Economic Policy Project