Moody's likely to affirm U.S. rating, negative outlook(OMG)

Reuters ^ | Jul 29, 2011 | Reuters

[mdittmar]

(Reuters) - The United States' triple-A credit rating is likely to be affirmed by Moody's with a negative outlook, the ratings agency said on Friday, signaling that a downgrade would not come immediately, but possibly in the medium term.

[mdittmar]

OMG!,rooters,moody's says...

[Doogle]

unexpectedly.

[boomop1]

Just opened a beer to cry in it, NOT.

[COUNTrecount]

Call me crazy but if you keep borrowing money that you can’t

pay back and make no attempt to pay down the principal or

stop spending, wouldn’t that make you a poor credit risk?

So where is the unexpected surprise?

[mdittmar]

Would the medium term be 2012?

[SueRae]

With all due respect, eff Moody’s. They led us down the garden path on the housing and banking crises in 2008, what makes them the be all to end all authority now?

[EGPWS]

unexpectedly.

So what else would you expect? ; )

[sappy]

Good job Democrats. killing the only bill presented. now thats what i call compormise and putting the people above politics.

[boomop1]

They are speaking in ebonics.

[Gator113]

I see, so it was only a threat that can be piled onto the B.S. of T. (big stack of threats).

Everything has the stench of Obama and his democrats... EVERYTHING.

[4Liberty]

Moody's, "You lie!"

[Brilliant]

Moody’s is almost as clueless as the Democrats.

[omega4179]

Moodys is just too stupid to understand how awesome Obama’s economic plan is. They are probably racist Britons too /s

[twister881]

Of course, it doesn't matter that the major institutional owner of Moody's is Berkshire Hathaway, ‘Rat-loving Warren Buffet's conglomerate. Or that the chairman and CEO of Moody's, Raymond McDaniel, Jr., last year gave $1,000 to Chris Dodd (’Rat-CT), one of the principle architects or our national financial collapse and The Hero of Chappaquiddick’s main boozing partner, even though Dodd was retiring from the Senate to sit on his cash pile.

This all stinks of a 'Rat-inspired pressure game to get conservatives to cave over threats of bond rating downgrades.

[JudgemAll]

Tales of the Princess Bride. The new Prince entering the “rich white” “cool kid” night club is not so cool after all. These rich people who enable him are fools.

[socialism_stinX]

After a brief selloff, a debt downgrade would not have any effect on treasury bond prices and interest rates. That’s because the bond market knows everything the ratings agencies know and a downgrade is already priced into the treasury bond market.

[wiggen]

Whatever plan reaches obumblers desk won’t cut nearly enough. I suspect that will be the medium term.

[Cheetahcat]

Well with economic Idiots, running the place, we are lucky the lights are still on!

[socialism_stinX]

The US Treasury bond market is like a big global savings fund. As long as the global economy continues to grow, we won't ever have to repay the debt. We repay individual bond issues and then issue new debt, i.e., we roll over the bonds into new bonds as they mature. But we do have to pay interest on all the debt, and that interest expense is the real cost of the debt to the American people. We try to minimize that interest expense by issuing mostly short-term debt, but the interest cost is still growing rapidly and is eating up an increasing amount of tax revenue.

A debt downgrade is no big deal, and is already fully expected by the bond market and is fully priced into treasury bonds. If a downgrade occurs, the treasury bond market will sell off for a few weeks at most, and then bounce back to where it was before the downgrade. There won't be any long-term impact on interest rates from a debt downgrade.

[RinaseaofDs]

Moody’s isn’t clueless, its complicit.

This is the same Moody’s that laundered mortgage securities backed by $750K mortgages to $14,000 illegal aliens into AAA rated MBS’s that Calpers was putting their retirement bucks into.

Moody’s KNEW it was happening, and at the time it was happening Buffett owned TWENTY percent of Moody’s stock.

Moody’s is a joke, but the joke is baked into the system now and even though their ratings are absolute fiction, they influence credit power in a way that nothing else does.