Skip to comments.MOODY'S THREATENS TO CUT USA RATING WITHOUT DEAL TO CUT DEBT/GDP
Posted on 09/11/2012 6:49:26 AM PDT by blam
MOODY'S THREATENS TO CUT USA RATING WITHOUT DEAL TO CUT DEBT/GDP
September 11, 2012
Moody's is warning that it may cut the US government's credit rating from the Aaa to Aa1 if it is unable to negotiate a deal to materially reduce its federal debt to GDP ratio.
Here's the annoucnement from Moody's:
Moody's issues update on the outlook for the US government's debt rating: Budget negotiations key
Global Credit Research - 11 Sep 2012
New York, September 11, 2012 -- Budget negotiations during the 2013 Congressional legislative session will likely determine the direction of the US government's Aaa rating and negative outlook, says Moody's Investors Service in the report "Update of the Outlook for the US Government Debt Rating."
If those negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term, the rating will likely be affirmed and the outlook returned to stable, says Moody's.
If those negotiations fail to produce such policies, however, Moody's would expect to lower the rating, probably to Aa1.
Moody's views the maintenance of the Aaa with a negative outlook into 2014 as unlikely. The only scenario that would likely lead to its temporary maintenance would be if the method adopted to achieve debt stabilization involved a large, immediate fiscal shocksuch as would occur if the so-called "fiscal cliff" actually materializedwhich could lead to instability. Moody's would then need evidence that the economy could rebound from the shock before it would consider returning to a stable outlook.
Moody's notes that it is difficult to predict when during 2013 Congress will conclude negotiations that result in a budget package. The Aaa rating, with its negative outlook, is likely to be maintained until the outcome of those
(Excerpt) Read more at businessinsider.com ...
Let’s see how long it will take for Axelrod to threaten Moody’s like he did Gallup.
Probably not very long
I heard some [typical] lib that Hannity was interviewing the other day blaming the Tea Party for the last downgrade.
These people can’t be educated, they can’t be compromised with.
The only thing we can do with them is relegate them to a status where they can do us no harm.
The last rating cut Obama and the Dems tried to argue it was not because of the increase in the debt but because the Republicans did not agree to increase it fast enough. This indicates that is bogus - it’s the debt, period.
All I can say is do it! Maybe some people will WAKE UP!
translation: Moody’s setting the stage for Obama to roll the RINOS for tax increases in a second term.
Good luck with that. QEIII is on the way and Boehner and McConnell will be caving in on the next debt ceiling increase as usual. In another 18 mos we will be downgraded to junk just like Greece.
“Lets see how long it will take for Axelrod to threaten Moodys like he did Gallup.”
I was thinking along those lines, too, except I figured Moody’s would be visited by Holder’s DOJ with a lawsuit in hand.
Send buses of Occutards to the Moodys folks homes and some IRS audits their way and they’ll toe the line like good comrades.
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