Bring It

NPR's Planet Money discusses the possibility of a ratings downgrade should an agreement not pass before the August 2nd deadline (or if one does that feels too temporary),

3 Reasons A Downgrade Might Not Be A Big Deal (And 1 Big Reason It Might)

Brief synopsis... there's a big difference between getting downgraded and defaulting outright.  Going from a AAA to a AA rating probably wouldn't shake investors too badly.  A downgrade would still be embarrassing and indicative of genuine internal problems that could continue to pull down confidence.

Also, I can't recommend the Planet Money podcast enough.  A great listen, some of the best coverage of this continuing economic crisis out there.