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Moody's May Cut US Rating on Tax Package
CNBC ^ | DECEMBER 13, 2010 | Reuters

Posted on 12/13/2010 5:20:20 PM PST by RobinMasters

Moody's warned Monday that it could move a step closer to cutting the U.S. Aaa rating if President Obama's tax and unemployment benefit package becomes law.

The plan agreed to by President Obama and Republican leaders last week could push up debt levels, increasing the likelihood of a negative outlook on the United States rating in the coming two years, the ratings agency said.

A negative outlook, if adopted, would make a rating cut more likely over the following 12-to-18 months.

For the United States, a loss of the top Aaa rating, reduce the appeal of U.S. Treasuries, which currently rank as among the world's safest investments.

"From a credit perspective, the negative effects on government finance are likely to outweigh the positive effects of higher economic growth," Moody's analyst Steven Hess said in a report sent late on Sunday.

After Obama announced his plan, Treasury prices fell sharply in volatile trade last week and yields have hit a six-month high, in part due to concerns over the effect the package will have on government debt levels.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; Front Page News; News/Current Events
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1 posted on 12/13/2010 5:20:20 PM PST by RobinMasters
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To: RobinMasters

obamanation has created a system which will destroy America, or at least seriously criple us for the next few generations. he should be tarred and feathered for his treason


2 posted on 12/13/2010 5:27:47 PM PST by bareford101 (For me, there is no difference in a tolerant, open mind and a cess pool. Both are open to filth.)
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To: RobinMasters

pork,pork,pork,pork,pork


3 posted on 12/13/2010 5:34:45 PM PST by GeronL (#7 top poster at CC, friend to all, nicest guy ever, +96/-14, ignored by 1 sockpuppet.. oh & BANNED)
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To: RobinMasters

This begs the question, why hasn’t Moody’s not done this already? Makes me wonder what is truly behind this announcement, or who is behind it.


4 posted on 12/13/2010 5:37:09 PM PST by ABQHispConservative (November, yeah baby! Take that Pelosi.)
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To: bareford101

True indeed. But also, what does Moody’s know about politics?

If you raise taxes, as Moody’s apparently wants to do, Congress will just spend the money away. And we’ll be back where we started.


5 posted on 12/13/2010 5:38:59 PM PST by heye2monn
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To: RobinMasters

hopefully this will kickstart the Repubs into swift spending reductions


6 posted on 12/13/2010 5:40:41 PM PST by avital2
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


7 posted on 12/13/2010 5:41:27 PM PST by Nachum (The complete Obama list at www.nachumlist.com)
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To: RobinMasters

There is NO TAX CUT in the package. It’s Porkulus III.


8 posted on 12/13/2010 5:46:20 PM PST by VRWC For Truth (Throw the bums out who vote yes on the bailout)
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To: VRWC For Truth

It is actually a tax increase since the estate tax goes from 0 to 35%.


9 posted on 12/13/2010 5:53:46 PM PST by sheana
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To: RobinMasters

Good.

The people who count numbers know it will increase the deficit. It really is that simple.


10 posted on 12/13/2010 6:11:06 PM PST by MontaniSemperLiberi (Moutaineers are Always Free)
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To: RobinMasters

Lemme guess— Soros control Moody’s too? And we, the peasants, are not allowed to have lower taxes?


11 posted on 12/13/2010 6:27:51 PM PST by backwoods-engineer (Onward to the battle royal!)
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To: RobinMasters
Yeah, Moody's was right on top of the situation with the meltdown of Fannie Mae and Freedie Mac. /s

Rating companies are part of the problem in that they do not have liability for the accuracy of their ratings with their subscribers. If they had to buy insurance to cover their predictions, IMO their behavior would be very different.

12 posted on 12/13/2010 7:04:22 PM PST by Carry_Okie (The environment is too complex and too important to manage by central planning.)
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To: RobinMasters

Moody’s will play right into oscumbag’s hand. oscumbag wants to increase our debt. Lowering our credit rating will make the interest on borrowing more expensive.


13 posted on 12/13/2010 8:22:37 PM PST by ratsreek
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To: ABQHispConservative

Nationalize the ratings agencies. They will give the STATE whatever rating we tell them too.

Just like the FNMA and FHLMC mortgage pools full of loans Barney Frank and the fed coerced them to make.

AAA


14 posted on 12/13/2010 9:52:49 PM PST by Eric Blair 2084 (Beware of the Socialist Government-Academia Grant Junkie-Rich "non-profit"-Liberal Media Complex)
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To: ABQHispConservative

Anyone who believes anything Moody’s says or does is a complete idiot. They are in the tank for whoever pays them.


15 posted on 12/13/2010 10:05:44 PM PST by screaminsunshine (Americanism vs Communism)
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To: RobinMasters
Dem Rep. Ellison: We Need To "Create A Real Crisis" To Raise Taxes...
16 posted on 12/13/2010 10:21:10 PM PST by Qbert
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To: bareford101

YEP and the Republicans learned NOTHING in November. They used us! Dems, Repubs, all the same. I am beginning to really hate our government. Time for a change. Time to get out of here for a while and enjoy life.


17 posted on 12/13/2010 10:30:46 PM PST by mojitojoe (In itÂ’s 1600 years of existence, Islam has 2 main accomplishments, psychotic violence and goat curr)
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To: mojitojoe

You’re surprised?

This is why I couldn’t get all that excited about the Tea Party candidates. The clowns in DC were not going to let the unwashed masses elect people who the Party Hacks did not approve of. We saw that in a few races.

And in the cases where we great Unwashed Masses did elect someone who knows their ass from a warm rock, the party hacks are certainly not going to allow those people anywhere near actual power.

We’re long past the point where there’s a way to turn this situation around at the ballot box.


18 posted on 12/13/2010 11:04:06 PM PST by NVDave
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To: screaminsunshine

They are all of that, true.

But they’re also a day late and a dollar short, so to speak. During the crisis in 2008, they were *so* far behind events that they became laughable in their pronouncements, so much so that people started to ask “What purpose do these clowns serve at all any more?”

So now when the bond markets start making radical moves, the three big ratings agencies have to catch up to maintain their credibility with anyone who has a room temperature IQ.


19 posted on 12/13/2010 11:07:02 PM PST by NVDave
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To: NVDave

They have no credibility in my book. let the buyer beware.


20 posted on 12/13/2010 11:08:09 PM PST by screaminsunshine (Americanism vs Communism)
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