Moody's expects to lower its U.S. credit rating to Aa1 from Aaa in 2013 unless budget...


Moody's expects to lower its U.S. credit rating to Aa1 from Aaa in 2013 unless budget negotiations "produce a stabilization and then downward trend" in the government's debt/GDP ratio.

Comments (25)
  • JB Murphy
    , contributor
    Comments (89) | Send Message
     
    Romney can blame this on Obama but can Obama still blame this on Bush?
    11 Sep 2012, 09:10 AM Reply Like
  • tom_t
    , contributor
    Comments (318) | Send Message
     
    Sure he can. Obama's entire defense can be summed up as "whatever we do, whatever money we spend, is because we're still trying to clean up the mess." In other words: "I deserve a pass for eight years for preventing the end of civilization as we know it."
    11 Sep 2012, 09:26 AM Reply Like
  • Shaun Connell
    , contributor
    Comments (360) | Send Message
     
    Lol, and how is Obama preventing the "end" of civilization? He's a do-nothing president who wasted his political capital making medical care more expensive and increasing regulations.

     

    He's not trying to save crap.
    11 Sep 2012, 10:22 AM Reply Like
  • tom_t
    , contributor
    Comments (318) | Send Message
     
    I forgot to turn my sarcasm tags on.

     

    [sarcasm]Obama blah blah[/sarcasm]

     

    :)
    11 Sep 2012, 11:42 AM Reply Like
  • LarryWh
    , contributor
    Comments (280) | Send Message
     
    The housing crisis was caused by Clinton not Bush.
    11 Sep 2012, 12:31 PM Reply Like
  • hackenzac
    , contributor
    Comments (305) | Send Message
     
    Personally, I blame Congress, specifically, the lower house.
    11 Sep 2012, 12:40 PM Reply Like
  • mcampbell839
    , contributor
    Comments (9) | Send Message
     
    Bingo!
    11 Sep 2012, 03:59 PM Reply Like
  • LarryWh
    , contributor
    Comments (280) | Send Message
     
    You can also blame congress for the budget deficit, oh that's right they don't have a budget!
    11 Sep 2012, 04:31 PM Reply Like
  • Justin M. Hall
    , contributor
    Comments (748) | Send Message
     
    Hahaha. Tom, you certainly don't believe that such a response would be credible. At this point, the blame game is just a bit exhausted.
    11 Sep 2012, 09:30 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    "the blame game is just a bit exhausted"

     

    Good one. Then you haven't been observing politicians close enough. It's either the predecessor, a higher power or if all else fails some foreign nation or foreign evil entity. It's never ever their fault.
    11 Sep 2012, 10:14 AM Reply Like
  • Poor Texan
    , contributor
    Comments (3527) | Send Message
     
    You mean you don't think Tom was being sarcastic? I thought it was great humor.
    11 Sep 2012, 11:05 AM Reply Like
  • assetman07
    , contributor
    Comments (78) | Send Message
     
    Moodies is only 1 year late to the downgrade party.

     

    Winning!
    11 Sep 2012, 10:52 AM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    Yawn.
    11 Sep 2012, 10:54 AM Reply Like
  • Teutonic Knight
    , contributor
    Comments (3449) | Send Message
     
    What seems to be Moody's hang-up? Didn't we have a deal in August 2011 and it was later signed by the president? It was known as Sequestration. Taxes have to go up to pay down the debt. Spending? I'm not so sure. It seems we are hooked and addicted with borrowing through and through. Need to go to Rehab. So Moody, why now?
    11 Sep 2012, 11:15 AM Reply Like
  • BDC Review
    , contributor
    Comments (81) | Send Message
     
    A Moody's downgrade would be bad as two out of the three major agencies will have the US no longer AAA. This will blow up some CLO/CDO/guidelines as they scramble to get a higher average quality score in their funds.
    11 Sep 2012, 11:28 AM Reply Like
  • Greenspanblows
    , contributor
    Comments (148) | Send Message
     
    Anyone who uses Moody's ratings or downgrades as criteria for investing should re-evaluate their policies. How can you possibly trust a company that purposefully and maliciously lied to the public so that they could increase revenues and pay themselves large bonuses?

     

    This is disgusting. Why are they even still in business?
    11 Sep 2012, 03:19 PM Reply Like
  • sethmcs
    , contributor
    Comments (3549) | Send Message
     
    There will be more consequences than the S&P downgrade. Laws write in AAA requirements.
    11 Sep 2012, 03:46 PM Reply Like
  • captiankirkoptions
    , contributor
    Comments (241) | Send Message
     
    Moody's is irrelevant anymore - totally inept.
    11 Sep 2012, 02:26 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9709) | Send Message
     
    They can shove it.
    11 Sep 2012, 02:38 PM Reply Like
  • Greenspanblows
    , contributor
    Comments (148) | Send Message
     
    Not sure why SA is not posting my comments (so much for freedom of speech). Anyway, what I posted earlier is who cares what Moody's has to say. They have made it clear that these are only their opinions and there is absolutely no recourse if their opinion is wrong.

     

    To me, that makes their opinions useless.
    11 Sep 2012, 03:06 PM Reply Like
  • Amadon
    , contributor
    Comments (281) | Send Message
     
    The German High Court is going to take all the bears out behind the wood shed tomorrow and then while they are down and dazed, Ben is going to deliver the Coup de Grace and finish them off and all will be right with the world forever and ever, Amen.
    11 Sep 2012, 03:32 PM Reply Like
  • Amadon
    , contributor
    Comments (281) | Send Message
     
    What we have here is a failure to communicate. The bears just don't understand what the central banks have been trying to communicate.
    Debt and credit ratings don't matter any more.
    11 Sep 2012, 03:56 PM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    You are right, fundamentals are of no consequence...until they are. A ponzi scheme works to the point it collapses. The question remains: when will it fail?

     

    A probable key is the belief in a currency. The belief erodes though inflation, commodity bubbles (see gold) or when alternative currency peers are less in the negative limelight (€) and in consequence leads to a depreciation of currency which leads to higher inflation which leads to eroding belief. It's a vicious self feeding cycle and explains why currencies have failed in an accelerating fashion.

     

    Growing out of debt by spending way beyond your means. When has it ever worked in any sustainable fashion?
    11 Sep 2012, 05:32 PM Reply Like
  • Amadon
    , contributor
    Comments (281) | Send Message
     
    I noticed in the last FOMC minutes someone suggested that they quit referring to specific dates, such as 2014 or 2015, as the target dates to hold the near zero interest policy to allow for more flexibility and to avoid credibility problems, I suspect that shortly after QE3 someone will probably suggest that they quit numbering the QE events also as history has shown that these numbers can grow quite large in a very short period of time and could confuse investors as they try to remember just which QE event this is.
    11 Sep 2012, 04:43 PM Reply Like
  • Amadon
    , contributor
    Comments (281) | Send Message
     
    As George Soros noted in his recent essay there is no longer any reason for any government with a printing press to default on debt. I would like to go Mr. Soros one better. Any government who has a printing press and has debt that has become uncomfortable would be better off to print up money in the creditors own currency instead of their own. That way they can pay their debt in full and in like kind without inflating their own currency. I expect this will soon become the preferred method of repayment for many nations.
    11 Sep 2012, 05:43 PM Reply Like
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