Moody's Places US Aaa Government Bond Rating on Review for Possible Downgrade

[Modbert]

http://www.moodys.com/research/Mood...ted-Ratings?lang=en&cy=global&docid=PR_221800

New York, July 13, 2011 -- Moody's Investors Service has placed the Aaa bond rating of the government of the United States on review for possible downgrade given the rising possibility that the statutory debt limit will not be raised on a timely basis, leading to a default on US Treasury debt obligations. On June 2, Moody's had announced that a rating review would be likely in mid July unless there was meaningful progress in negotiations to raise the debt limit.

In conjunction with this action, Moody's has placed on review for possible downgrade the Aaa ratings of financial institutions directly linked to the US government: Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Federal Farm Credit Banks. We have also placed on review for possible downgrade securities either guaranteed by, backed by collateral securities issued by, or otherwise directly linked to the US government or the affected financial institutions.

And if nothing changes, it's only going to get worse from here.

 

[Wiseacre]

Getting serious now, we don't need high interest rates on our debt.

 

[expat_panama]

Getting serious now, we don't need high interest rates on our debt.

LOL!!! These liars never quit. When Obama voted against raising the ceiling before there was no default risk. When the Dem congress actually shut down the government in '91 there was no default. That's because the 14th amendment guarantees debt payments even before paying for NPR, the first lady's vacations, NEA, and guns for Mexican drug lords.

 

[FireFly]

Egan-Jones Downgrades US From AAA To AA+

 

[sealybobo]

Moody's Places US Aaa Government Bond Rating and Related Ratings on Review for Possible Downgrade



And if nothing changes, it's only going to get worse from here.

WRONG!



One bond in particular, the Series I Savings Bond, got so popular, would-be buyers crashed the Treasury's website last week (TreasuryDirect.gov, where you can buy the bonds). What's going on? What happened to government bonds to make them sexy?