NPR 2011-04-19

The credit rating agency Standard and Poor's is putting Washington on notice. NPR's Zoe Chace reports that if Congress and the president don't agree on a long-term deficit 1 plan by 2013, then the US may be a riskier 2 place to invest.

US government debt is thought as one of the safest investments in the world. That's why the S&P note shocked finance professor Jeremy Siegel.

"It is the first time at least in my memory that a major rating agency has put US government bonds on a negative watch list."

US government bonds still have a AAA rating. That's the best you can get. But Siegel says the ratings agency is dubious 3 about US credit rating is going forward because the government debt is growing so fast. S&P says if meaningful implementation 4 of a solution to the deficit hasn't begun by 2013, then there's a one-in-three chance US bonds will be downgraded. Zoe Chace, NPR News.

White House spokesman Jay Carney's downplaying S&P's outlook.

"We think the political process will outperform S&P expectations."

But Wall Street is rattled 5. The Dow tumbled more than 1.5% today before regaining 6 some ground. At last check, the Dow was down just over 1% at 12,201. Investors 7 are also reacting to Europe's growing debt crisis.

In other news, a Pentagon investigation 8 clears General Stanley McChrystal and his former staff of violating military rules or standards of conduct. McChrystal was forced to resign as the top commander in Afghanistan after a disparaging 9 profile in Rolling Stone magazine. NPR's Rachel Martin says a Pentagon report calls much of that article into question.

Pentagon investigators 11 said they were unable to confirm the most damning statements and events described in the Rolling Stone article from last summer that got General McChrystal fired. In the piece, McChrystal and his aids are quoted, making negative remarks about top members of the Obama administration. The Pentagon inspector 12 general tried to corroborate 13 those statements, but said after interviewing more than a dozen people believed to be involved, was unable to attribute them. The editor of Rolling Stone defended the original article in an email to Pentagon investigators. Rachel Martin, NPR News, Washington.

North Carolina authorities say 67 homes are destroyed as a result of the powerful storm system that plowed 14 through over the weekend, generating tornados 15. The state reports at least 21 people were killed. And that accounts for nearly half of all storm-related deaths in six states.

Home builders are apparently 16 less optimistic about the housing market in general. The National Association of Home Builders says today that its index of industry sentiment for April fell to 16. Any rating below 50 indicates negative sentiment about this sector 17.

The Dow's down 140 points at 12,200.

This is NPR News.

The declared winner of Nigeria's presidential vote, Goodluck Jonathan, is appealing for calm. Today, riots broke out in northern Nigeria. The BBC's Caroline Duffield reports election observers are encouraging leaders of all opposing factions 18 to condemn 19 the violence.

They praised the Nigerian people for going out and voting peacefully. But they also have pointed 20 political parties towards their obligations. And I think that really is a very strong message to Mr. Jonathan's main rival, the leader of the Congress for Progressive Change, Muhammadu Buhari. And Mr. Buhari's so far been silent about this violence. Political pressure is driving on him to actually condemn it. And so far his supporters have refused to do so.

The BBC's Caroline Duffield.

Trustees for Colombian University have announced the Pulitzer Price Awards for 2011. NPR's David Folkenflik reports large newspapers dominated the journalism 21 categories, but for the first time one prize-winning project never appeared in print.

The New York Times won for its influential 22 reporting from Russia, and Times economic columnist 23 David Leonhardt took the commentary category. But the Los Angeles Times also took two Pulitzers: public service for its magisterial 24 investigation of corruption 25 in Los Angeles County and for feature photography. Among other winners were the Wall Street Journal, the Boston Globe and the Sarasota Herald-Tribune. Notably 26 under new rules, the investigator 10 of an online outfit 27, ProPublica, won for exposing how some hedge fund operators enrich themselves at the expense of other investors. That project was done in partnership 28 with NPR's Planet Money and This American Life. Winners in the arts and letters include the poet Kay Ryan, Jennifer Egan for fiction, Bruce Norris for drama and Ron Chernow for his biography of George Washington.