Debt Crisis Over... Or Is It?

August 2, 2011 Updated Aug 2, 2011 at 11:26 PM EDT

By John Borsa

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August 2, 2011 Updated Aug 2, 2011 at 11:26 PM EDT

BUFFALO, NY (WKBW) - The nation's debt crisis has been averted, for now.

"There was so much uncertainty. And it was so unnecessary. It did not have to come down to this, the eleventh hour," said Rep. Kathy Hochul (D-NY 26).

The debt ceiling has been lifted. The nation will not default on its loans.

"Congress has now approved a compromise to reduce the deficit and avert a default that would have devastated our economy," Mr. Obama said.

But the work and the headaches has just begun.

"Increasing the debt ceiling removed a big cloud of uncertainty," Greg McBride, Senior Financial Analyst at Bankrate.com told ABC News.

"Unfortunately, it's been replaced by another cloud of even greater economic uncertainty," he said.

That's because the debt deal will leave most of the deficit reduction to a so-called Super Committee. A dozen members of Congress who in November will present the entire Congress with a package of $1.5 trillion in deficit reduction.

"The good thing in all of this is Medicare will be protected. Social Security will be protected. And those are important priorities," said Rep. Brian Higgins (D-Buffalo).

But if the Super Committee's take-it-or-leave-it recommendations are not approved by Congress, that sets off a trigger, automatically cutting $1.2 trillion from the Pentagon and other programs, even Medicare.