Yes, the horrible truth is that the S&P down grade will cost every one of us. It will cripple those who can least afford to pay more. Investment will lessen and unemployment will increase. Just today Mellon Bank instituted a new fee assessed against those whose deposits are larger than 50 million. Money, 2.3 trillion so far, is flooding out of the market.

And yes, the tea party faction is responsible. Their unprecedented intransigence changed the rules and could not be countered because of the insane circumstance of tying budget cuts to the debt ceiling time bomb. There are lots of reasons why the tea party Congressmen are just plain dumb, but their greatest shortcoming is their failure to understand the essential nature and absolute necessity for consumer and investor confidence. It's a fundamental principle of Economics 101 for God's sake!

It may never be harder to wait until Congress reconvenes, but I suggest we wait. It's better than street riots. I will go way out on a limb here, but I am making the following prediction:

President Obama will work night and day to force Congress to pass an additional budget cutting measure before the end of this year. It will be styled like the plan he originally endorsed, including some new revenue and some new limitations on entitlements. It will be a compromise. And it WILL be large enough, at least 4 trillion, to guarantee with appropriate fanfare, that S&P restore the triple A rating.

This must happen. And because it must, the President's endless pursuit of it will become part of his legacy. But the irony of all of this will be that it will not be the President who will have compelled S&P to restore the top rating. After all, the President does not have the constitutional power to do any such thing. The President will simply funnel the loud demands to the ears of Congressmen, the collective voice of the American people.