Moody's Threatens to Downgrade US if Debt Ceiling not Raised

[Toro]

Breaking

 

[Annie]

What about a budget?

 

[Annie]

There's quite a few links now, here's one:

Moody’s Wags Finger At Washington Over Debt Ceiling Deadlock - Steve Schaefer - Exile On Wall Street - Forbes

 

[signelect]

Yea I hope for change in 2012 NOBAMA What a mistake this country made.

 

[expat_panama]

Moody's Threatens to Downgrade US if Debt Ceiling not Raised

That's what the spending left says. The WSJ reports here that Steven Hess, senior credit officer of the Sovereign Risk Group at Moody's Investors Service says "the U.S. could be in danger of losing its top-notch credit rating if the fight in Congress over the country's debt limits causes it to miss an interest payment on its debt." For all Moody's cares congress could lower the damn ceiling as long as payments are made on time.

When you think of it, why would the credit rating be downgraded if the country is less in debt?

 

[Wiseacre]

Annie's link said they would review the US credit rating, not necessarily downgrade it. I have been under the impression that even the GOP knows it has to raise the debt ceiling, it's just a question of when they do it and what they get Obama and the Dems to agree to in the way of spending cuts. So it's gonna get done, what I'm wondering is if somebody inthe Obama admin has talked to somebody at Moody's and applied a little pressure for them to say something. Or maybe somebody at Moody's took it on themselves to get in the poltical game. Could be a silver lining for this to the Repubs, if it makes the TPers a little nervous and they back off a little bit. Not the hard core ones, but some of the more moderate ones. And yes, there are a few moderate TPers out there.

 

[editec]

Moody's Threatens to Downgrade US if Debt Ceiling not Raised

That's what the spending left says. The WSJ reports here that Steven Hess, senior credit officer of the Sovereign Risk Group at Moody's Investors Service says "the U.S. could be in danger of losing its top-notch credit rating if the fight in Congress over the country's debt limits causes it to miss an interest payment on its debt." For all Moody's cares congress could lower the damn ceiling as long as payments are made on time.

When you think of it, why would the credit rating be downgraded if the country is less in debt?

It would not be in less debt.

It would be in default of payment of debts.

 

[signelect]

We have a lot of middle age rich people in congress that don't understand that you can't spend more than you make. How hard is it. When your living high on the govt payroll for you and your family and then factor in the lobbyist why should they care about the rest of us.

 

[Toro]

Moody's Threatens to Downgrade US if Debt Ceiling not Raised

That's what the spending left says. The WSJ reports here that Steven Hess, senior credit officer of the Sovereign Risk Group at Moody's Investors Service says "the U.S. could be in danger of losing its top-notch credit rating if the fight in Congress over the country's debt limits causes it to miss an interest payment on its debt." For all Moody's cares congress could lower the damn ceiling as long as payments are made on time.

When you think of it, why would the credit rating be downgraded if the country is less in debt?

The headline came from my Bloomberg. I didn't realize Bloomberg was the spending left. You learn something new everyday.

 

[Toro]

Annie's link said they would review the US credit rating, not necessarily downgrade it. I have been under the impression that even the GOP knows it has to raise the debt ceiling, it's just a question of when they do it and what they get Obama and the Dems to agree to in the way of spending cuts. So it's gonna get done, what I'm wondering is if somebody inthe Obama admin has talked to somebody at Moody's and applied a little pressure for them to say something. Or maybe somebody at Moody's took it on themselves to get in the poltical game. Could be a silver lining for this to the Repubs, if it makes the TPers a little nervous and they back off a little bit. Not the hard core ones, but some of the more moderate ones. And yes, there are a few moderate TPers out there.

It's a failure of politics, not one particular party. Anyone who thinks it's just one side causing this is a partisan ideologue with their head up their ass.

 

[California Girl]

Annie's link said they would review the US credit rating, not necessarily downgrade it. I have been under the impression that even the GOP knows it has to raise the debt ceiling, it's just a question of when they do it and what they get Obama and the Dems to agree to in the way of spending cuts. So it's gonna get done, what I'm wondering is if somebody inthe Obama admin has talked to somebody at Moody's and applied a little pressure for them to say something. Or maybe somebody at Moody's took it on themselves to get in the poltical game. Could be a silver lining for this to the Repubs, if it makes the TPers a little nervous and they back off a little bit. Not the hard core ones, but some of the more moderate ones. And yes, there are a few moderate TPers out there.

It's a failure of politics, not one particular party. Anyone who thinks it's just one side causing this is a partisan ideologue with their head up their ass.

^^^ That's true. This is about a failure of our politicians, all of them. Not D's or R's.

 

[peach174]

It's a matter of what Department is going to fight to not pay that credit bill. We have enough to pay for it.
The fighting of who gets what is going to happen between congress.
Both Parties are to blame plus all of us.
Blame will get us nowhere, as to the fighting? We have to wait and see in Aug.
It is up to us to put the pressure on them to pay that credit card bill,first and foremost before anything else is paid for.

 

[Wiseacre]

Annie's link said they would review the US credit rating, not necessarily downgrade it. I have been under the impression that even the GOP knows it has to raise the debt ceiling, it's just a question of when they do it and what they get Obama and the Dems to agree to in the way of spending cuts. So it's gonna get done, what I'm wondering is if somebody inthe Obama admin has talked to somebody at Moody's and applied a little pressure for them to say something. Or maybe somebody at Moody's took it on themselves to get in the poltical game. Could be a silver lining for this to the Repubs, if it makes the TPers a little nervous and they back off a little bit. Not the hard core ones, but some of the more moderate ones. And yes, there are a few moderate TPers out there.

It's a failure of politics, not one particular party. Anyone who thinks it's just one side causing this is a partisan ideologue with their head up their ass.

Yeah, I know. But dude, historically we'ce always spent around 19-20% of GDP, but now it's up near 25%. Spending has got to be reduced, and it's the dems who are fighting that tooth and nail.

 

[peach174]

It's like the Dems are addicted to spending and always using the credit card. They can't stop because that's how they always get elected by telling their constituents what they are going to do for them with new spending programs.
We have to cut up that credit card.

 

[iamwhatiseem]

I call bullshit on the downgrade. Everyone knows this is not an actual "vote" per say.
They have moved enough money around to keep things fine till August.
However what this DOES do is creates a situation that will force the issue.
The President wants to raise it AND increase spending...which is mind bogglingly stupid.
So this forces the WHite House and legislators to get serious.

 

[Toro]

Annie's link said they would review the US credit rating, not necessarily downgrade it. I have been under the impression that even the GOP knows it has to raise the debt ceiling, it's just a question of when they do it and what they get Obama and the Dems to agree to in the way of spending cuts. So it's gonna get done, what I'm wondering is if somebody inthe Obama admin has talked to somebody at Moody's and applied a little pressure for them to say something. Or maybe somebody at Moody's took it on themselves to get in the poltical game. Could be a silver lining for this to the Repubs, if it makes the TPers a little nervous and they back off a little bit. Not the hard core ones, but some of the more moderate ones. And yes, there are a few moderate TPers out there.

It's a failure of politics, not one particular party. Anyone who thinks it's just one side causing this is a partisan ideologue with their head up their ass.

Yeah, I know. But dude, historically we'ce always spent around 19-20% of GDP, but now it's up near 25%. Spending has got to be reduced, and it's the dems who are fighting that tooth and nail.

Spending is high because we are in an economic malaise. It always rises relative to GDP during a recession. It always falls during a contraction. Also, tax revenues as a percent of GDP always falls when we are in a recession and always rises when there is an expansion. That's simple macroeconomics.

 

[Wonky Pundit]

It's like the Dems are addicted to spending and always using the credit card. They can't stop because that's how they always get elected by telling their constituents what they are going to do for them with new spending programs.
We have to cut up that credit card.

Not to mention the $1.3 Trillion tax cut that was never paid for, plus the multi-Trillion shock and awe that was never paid for.

 

[editec]

It's like the Dems are addicted to spending and always using the credit card. They can't stop because that's how they always get elected by telling their constituents what they are going to do for them with new spending programs.
We have to cut up that credit card.

Not to mention the $1.3 Trillion tax cut that was never paid for, plus the multi-Trillion shock and awe that was never paid for.

Nor the multi-TRILION dollars in benfits the BANSTERS got AND are continuing to get, too.

Yup, all we need do is cut all social services to the US citizens and everything will be jack for the masterclass.

 

[Toro]

Here's what Moody's had to say.

New York, June 02, 2011 -- Moody's Investors Service said today that if there is no progress on increasing the statutory debt limit in coming weeks, it expects to place the US government's rating under review for possible downgrade, due to the very small but rising risk of a short-lived default. If the debt limit is raised and default avoided, the Aaa rating will be maintained. However, the rating outlook will depend on the outcome of negotiations on deficit reduction. A credible agreement on substantial deficit reduction would support a continued stable outlook; lack of such an agreement could prompt Moody's to change its outlook to negative on the Aaa rating.

Although Moody's fully expected political wrangling prior to an increase in the statutory debt limit, the degree of entrenchment into conflicting positions has exceeded expectations. The heightened polarization over the debt limit has increased the odds of a short-lived default. If this situation remains unchanged in coming weeks, Moody's will place the rating under review.

Moody's had previously indicated that its stable outlook on the Aaa rating was based on the assumption that meaningful progress would be made within the next eighteen months in adopting measures to reverse the country's upward debt trajectory. The debt limit negotiations represent a real near-term opportunity for agreement on a plan for fiscal consolidation. If this current opportunity passes, Moody's believes that the likelihood of anything significant being accomplished before the next presidential election is reduced, in part because the two parties each hopes to capture both a congressional majority and the presidency in the 2012 election, after which the winning party could achieve its own agenda. Therefore, failure to reach an agreement as part of the current negotiations would increase the likelihood of a negative outlook in the near term, because the upward debt trajectory would still be in place. At present, this appears the most likely outcome, in Moody's opinion. ...

Moody's Says It Expects To Place US Rating For Downgrade Review If No Progress On Increasing Statutory Debt Limit | zero hedge

 

[elvis]

Damn. the US government has NEVER defaulted. What will this do to China's willingness to lend us money?