S&P, Moody's Warn On U.S. Credit Rating

Wall Street Journal ^ | January 13, 2011 | Mark Brown and Nathalie Boschat

[Zakeet]

Two leading credit rating agencies on Thursday cautioned the U.S. on its credit rating, expressing concern over a deteriorating fiscal situation that they say needs correction.

Moody's Investors Service said in a report Thursday that the U.S. will need to reverse an upward trajectory in the debt ratios to support its triple-A rating.

"We have become increasingly clear about the fact that if there are not offsetting measures to reverse the deterioration in negative fundamentals in the U.S., the likelihood of a negative outlook over the next two years will increase," said Sarah Carlson, senior analyst at Moody's.

Standard & Poor's Corp. on Thursday also didn't rule out changing the outlook for its U.S. sovereign-debt rating because of the recent deterioration of the country's fiscal situation. The U.S. currently has a triple-A rating with a stable outlook at both agencies.

[Zakeet]

... and every one percent hike in interest rates adds another $140 billion to the deficit ... and if S&P and Moody's cut the US credit ratings, interest expense will soar ... which will put further pressure on credit ratings ... which will increase borrowing costs ...

[redk]

Oh who cares he healed us all last night.

[houeto]

Ping.

[Oldeconomybuyer]

[kidd]

Every Freeper knew this was coming.

[jrl1]

Are these the same Moody’s that rated the collateralized mortgage obligations and securitizations AAA?
Moody’s is a scam, they have no Idea what they are talking about...Rating is supposed to be based on the ability to PAY, the U.S uses Fiat money, IT CAN ALWAYS PAY BACK IT’S DEBT!

[The Comedian]

Order-this-special-When-The-Dollar-was-Valuable-commemorative-silver-coin-for-your-children-who-missed-the-actual-experience ping.

(Thanks for the ping houeto!)

"Economic Holocaust" ping.

Increasing volume ping list watching the slow motion Economic Holocaust.

FReepmail me if you want on or off
The Comedian's "Economic Holocaust" ping list...

Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

[JPG]

I wish Barry would open his eyes.

[COBOL2Java]

Like watching Gomez Addams' train wreck in slow-motion...

[OB1kNOb]

Moody’s and Std & Poor’s better watch that kind of talk or Obama will send some of his ChiKago goons over to have a nice little chat with them.

[Lurker]

I wish Barry would open his eyes.

Oh, but they are open.

[Jane Long]

I wish Americans (FReepers excluded) would open their eyes.

[mrsmith]

Moody’s helped Mark Warner get a tax hike with false ‘credit warnings’ for Virginia.

Didn’t work for Kaine though, so I guess they’re just lying here to help Dems get the debt limit raised.

[Huebolt]

Bottom line is kill the baby-boomers (terminal health care) ASAP. Save money and confiscate all their property via the death tax.

Problem solved. Welcome to socialist utopia, just be sure to die young.

[OneWingedShark]

What an offensive picture! Steve Urkel was a likable character...

[The Comedian]

That image is going to make it into regular rotation. Kudos.

Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

[MichaelCorleone]

I wonder if the times-a-comin’ where the market will demand we issue Treasury debt in another currency like Canadian Dollars or Chinese Yuan. Or even a precious metal.

[April Lexington]

Wow! It MUST be bad if even Johnny come lately Moody’s and S&P have noticed the credit deterioration...

[Zakeet]

Wow! It MUST be bad if even Johnny come lately Moody’s and S&P have noticed the credit deterioration...

The credit evaluation agencies noticed the problem years ago. Their whole exercise is, after all, nothing more than ginning a few financial ratios. They kept their mouths shut due to browbeating by Treasury and the Fed.

What's different is the problem has become so critical and so obvious that these clowns are now more afraid of class action lawyers than their government masters.

And that is indeed bad!

[RckyRaCoCo]

Raising the debt ceiling will cure that. /s