The U.S. rating could be cut the next day if the government misses a debt payment, a senior...


The U.S. rating could be cut the next day if the government misses a debt payment, a senior Moody's credit officer says. "Since we feel the rating is not likely to return to triple-A [after a missed payment, we could] downgrade them the next day," Steven Hess says, adding that the example is hypothetical and he doesn't expect such an occurrence.
Comments (15)
  • Neil459
    , contributor
    Comments (2636) | Send Message
     
    Moody's officers missed every financial boondoggle in the last 20 years. There is no reason to consider this anything other than political grandstanding by an entity that is now regulated by a Democratic Administration that has proved that it will use its muscle to punish anyone that does not adhere to the Administration's political position.
    14 Jul 2011, 05:04 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
     
    Pandora's box is an artifact in Greek mythology, taken from the myth of Pandora's creation. The "box" was actually a large jar given to Pandora ("all-gifted"), which contained all the evils of the world. When Pandora opened the jar, its contents but for one item were released into the world. The one remaining item was Hope. Today, opening Pandora's box means to create evil that cannot be undone.
    14 Jul 2011, 05:06 PM Reply Like
  • bigbenorr
    , contributor
    Comments (1156) | Send Message
     
    My question is, with a possible default only weeks away, why hasn't the rating already been cut?
    14 Jul 2011, 05:10 PM Reply Like
  • Neil459
    , contributor
    Comments (2636) | Send Message
     
    "My question is, with a possible default only weeks away, why hasn't the rating already been cut?"

     

    We reached the debt limit in mid May. What makes you think default is weeks away. Ahhh, a lying Fed and a lying Administration.
    14 Jul 2011, 05:17 PM Reply Like
  • bigbenorr
    , contributor
    Comments (1156) | Send Message
     
    Yeah, what is up with that? I always see that debt clock and it is already over the limit.
    14 Jul 2011, 05:44 PM Reply Like
  • 2PP
    , contributor
    Comments (343) | Send Message
     
    Geithner must have just faxed them a statement they needed to release. Fear-mongering is poor domestic policy. I don't believe any of it, If Obama believes defaulting is the worst thing that could happen to the USA, why does he refuse to sign a short term extension? All politics, all the time.

     

    Geithners fax read "that's a nice rating agency you got Moody, I'd hate for anything bad to happen to it" The Chicago way comes to DC.
    14 Jul 2011, 05:11 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
     
    There is no short term extension to sign today. Believe me if McConnell can get one through the 535 moron gauntlet and it is the only option, Obama will sign it.
    14 Jul 2011, 05:23 PM Reply Like
  • 2PP
    , contributor
    Comments (343) | Send Message
     
    Obama has stated 3 times in 3 days he will not sign a short term debt limit increase. The consensus is that he feels it would interfere with his campaigning in the summer of 2012. If he truly would sign it if it was presented to him, has he been lying to the American public for three days?
    14 Jul 2011, 05:55 PM Reply Like
  • kmi
    , contributor
    Comments (4587) | Send Message
     
    Oh my, you mean politicians are not allowed to change their positions based on what the will of their constituents is?

     

    I didn't realize that.
    14 Jul 2011, 06:07 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
     
    As a politician it is his prerogative to change his stance on a moments notice. In political jargon that is not lying.
    14 Jul 2011, 06:09 PM Reply Like
  • 2PP
    , contributor
    Comments (343) | Send Message
     
    kmi, this has nothing to do with his constituents. This administration polls and focus groups everything they say and do. We all know the games politicians play, why can't liberals at least admit that their politicians are no different than any other? Some don't call it lying, but it is pandering at the least.
    14 Jul 2011, 08:49 PM Reply Like
  • Neil459
    , contributor
    Comments (2636) | Send Message
     
    "As a politician it is his prerogative to change his stance on a moments notice. In political jargon that is not lying."

     

    Correct, but what the Administration is doing is lying and it has nothing to do with changing their stance. Implying that not raising the debt ceiling will result in social security checks not going out is a lie. The only thing that will stop social security checks is if the President decides that he wants to punish those on social security and halts the checks.

     

    A lie is not a change in position, it is misrepresenting the facts to the American people in order to gain support for a political agenda.
    15 Jul 2011, 07:15 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
     
    Well I do not agree nor disagree with you but I also do not know if there will be sufficient cash on hand in the US Treasury to pay all government obligations after August 2nd. If that is true then payments will be prioritized and some creditors will not be paid until later. The prioritized payments may leave SS recipients and our Military waiting for their checks. It may come down to paying off maturing Treasury Notes held by creditor nations such as China first. It is not my decision nor yours and yes there is an element of political theater in this whole event. Misrepresentation of facts for political gain is not unique to the President or the liberals.
    15 Jul 2011, 08:01 AM Reply Like
  • Rob Viglione
    , contributor
    Comments (331) | Send Message
     
    Why would the feds ever miss a payment when they have the power to print?
    14 Jul 2011, 08:33 PM Reply Like
  • Neil459
    , contributor
    Comments (2636) | Send Message
     
    "Well I do not agree nor disagree with you but I also do not know if there will be sufficient cash on hand in the US Treasury to pay all government obligations after August 2nd."

     

    Exactly and if the President understood how to run an organization then he would be figuring that out right now and providing a real solution as to what government bureaucracies will be shut down or severely reduced. One simple solution, cut 30% of the $ that go to government budgets across the board. But make sure it's $ and not number of people. Anyone that thinks we do not have 30% fat in our government is not very observant. If Obama wanted to be reelected he would start in the White House.
    15 Jul 2011, 01:37 PM Reply Like
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