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 ...
Moody’s gives the current busted Ponzi scheme a triple A? That alone tells me to steer clear of anything they do.
Me neither.
I’m just explaining why they’re now making such pronouncements based on “the tax legislation.” It has nothing to do with the legislation whatsoever. Moody’s announcement has to do with what the bond market has done in the last three/four sessions, ie, sell off *hard*.
Not surprising; given our current situation cutting taxes without cutting spending makes us more insolvent. Don’t think there’s a political motivation behind this. Prior to November, the Republicans came out and said that 2008 was their fiscal target. Well, in 2008 we had a deficit and a debt and both were getting worse. If we only roll things back to 2008, after what Obama has done we’re still heading for the cliff, we’re just jogging instead of running.
Don’t think it’s politically motivated.
But not TARP? Obamacare? Endless war to implement Global Benevolent Hedgemony? But no keeping in place the one thing Bush did right.
Moody's is turning into a true 'Blowhard' outfit. The spokesman for that clown conventions should say, "This time I really, really, really mean it."
As I recall, Moody’s, Fitch, and S&P are the three components of a government-protected cartel, which is probably the one reason why Moody’s is only now considering downgrading our debt.
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