Deficits really don't matter. The stock market is tanking, but Treasury bonds are selling great. Our credit is so good that a 10 year bond pays only 2.4% interest per year. So much for S&P's downgrade - as if those stool pigeons had any credibility, anyway. Remember, they're the people who brought us the GFC in the first place.
But the real point here is that Republicans, who claim to worship the Free Market, are ignoring the very clear statement the market is making. Businesses, with all their tax breaks and de-regulations, are a poor bet; America debt is a good bet. This is the classic example of not having a debt problem. Yet Republicans will go on beating the the deficit drum until the instant they take the White House. No surprise there; but why are Americans still listening to these people?