Posted on 07/30/2011 7:08:34 AM PDT by EBH
Moody's Investors Service said late Friday that the United States should be able to keep its triple-A credit rating as long as Washington works out a deal that lets it continue to pay bondholders.
The credit rating agency said it thinks that even if the nation's $14.3 trillion borrowing limit isn't raised by Tuesday's deadline, the government would give priority to making interest payments on its debt and thereby avoid a default.
Moody's had warned July 13 that the country's credit rating was in danger of being downgraded because of the stalemate in Congress over raising the debt limit.
In its statement Friday, however, Moody's said that based on its current review it would likely rate the U.S. debt as triple-A but with a negative outlook. That would mean that there is a possibility of a downgrade in the future.
"If there were a default on a Treasury debt obligation, a downgrade would likely follow, even if the default were swiftly cured and investors suffered no permanent losses," Moody's said in its new report.
(Excerpt) Read more at finance.yahoo.com ...
Moody’s...weren’t they the guys who said AIG and Lehman’s were just fine...before they weren’t?
So...Moody’s credibility is hardly...well credible. I’ll swun!
Soooo last couple weeks Moody’s kept saying if they didn’t see 4 trillion in cuts, etc.
Now everything is A-ok?
Hmmmm.
Do nothing and we will have a balanced budget...they should go positively orgasmic over that.
I wonder how many of Obama’s cronies are at Moody’s now?
right.
So, should I spit out the cyanide pill or what?
Moody's and S&P blink. Obviously both are in the tank for the left. Everybody's posturng. Who can we trust?
I said it yesterday...
I’ll say it again today...
The GOP got punked.
1. punked A way to describe someone ripping you off,tricking you, teasing you.
IIRC, rating agencies fall under federal regulation thanks to the Frank-Dodd bill. The truth in their public statements now lie somewhere between their pre-2009 opinions and the Chicago muscle now leveraged against them.
March 2013?
Moody’s and S&P have been bought and paid for. They have no problem downgrading the PIIGS in Europe. So the USA should have been downgraded already.
This AAA rating is a joke. With an ever increasing debt that means the interest expense gets greater.
We are on our way to a default one way or another and the charade in D.C. just gets us there faster.
You're right. In fact, this article is yet another complete fabrication by one of the least trustworthy of MSM news sources -- the Associated Press.
This is what Moody's actually said:
"If there were a default on a Treasury debt obligation, a downgrade would likely follow, even if the default were swiftly cured and investors suffered no permanent losses ... If the debt limit is not raised before August 2, we believe that the Treasury would give priority to debt service payments and could thus postpone a potential debt default for a number of days ... As to the longer-term outlook on the rating, the limited magnitude of current deficit reduction proposals suggest that even a timely increase in the debt ceiling will lead to the assignment of a negative outlook on the rating."
In other words, unconstrained deficit spending leading to an increase in the debt ceiling is the problem, not increasing the debt ceiling by August 2.
The News Ninnies are either stupid, or deceptive, or both. Believe anything they say at your own peril.
All the more reason to make 0bama pull a 14th.
That would be the globalist 'nuclear option' in the likely event the republicans sweep the elections on November 6, 2012.
what does IIRC mean
The fix was and is in..... =.=
Or, it is like raising the blood alcohol driving limit so the intoxicated alcoholic can now drive without arrest. Take your pick.
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