Welcome Back Erin Burnett!

erin burnett

Erin Burnett made her CNN debut last night.

Burnett, whose new 7pm show on CNN (alas) doesn’t start until Sept (it must be killing her to be out of the mix right now) popped up on CNN last night to weigh in on the debt ceiling debate ahead of Obama’s national address. 

According to Burnett — and some sources she spoke to — catastrophe doesn’t necessarily immediately await if we don’t get a deal.  But according to a source who spoke to people at S&P Boehner’s plan wouldn’t prevent a downgrade, but Reid’s plan probably would prevent and immediate downgrade.

In the short term, either deal probably will be enough, although really interesting this afternoon, Wolf, when I was talking to an investor who had met with the ratings agencies at Standard & Poor’s talking about the potential of a downgrade — which, by the way, could raise interest rates just the same way a potential default could — and they said the Boehner plan probably wouldn’t hit the hurdle to prevent a downgrade. 

So that even if that deal was reached, you could still get a downgrade. 

It is unclear whether that would happen for sure, but that would be a real possibility. 

Whereas the Reid plan, even though a lot of the parts of that are seen by many as gimmicks, probably would pass that hurdle and you wouldn’t get that immediate downgrade.  So that’s actually an interesting distinction to watch. 

 Video below.

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