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Moody's says US should retain top credit rating
Yahoo/Finance ^ | 7/29/11 | Martin Crutsinger

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 ...


TOPICS: Business/Economy; Crime/Corruption; Front Page News; Government
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All I see is smoke and mirrors...
1 posted on 07/30/2011 7:08:35 AM PDT by EBH
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To: EBH
Who paid off all the right people at Moody's? Soros? Were there threats involved? Did the Chicago Gang have a nice, friendly little chat with them? Lots of questions and so far, no answers.
2 posted on 07/30/2011 7:14:04 AM PDT by JPG (Yes she can!)
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To: EBH

Moody’s...weren’t they the guys who said AIG and Lehman’s were just fine...before they weren’t?


3 posted on 07/30/2011 7:16:19 AM PDT by kjo
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To: EBH

So...Moody’s credibility is hardly...well credible. I’ll swun!


4 posted on 07/30/2011 7:17:11 AM PDT by RowdyFFC
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To: EBH

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.


5 posted on 07/30/2011 7:19:09 AM PDT by Adder (Say NO to the O in 2 oh 12)
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To: EBH

I wonder how many of Obama’s cronies are at Moody’s now?


6 posted on 07/30/2011 7:20:01 AM PDT by Brilliant
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To: JPG

right.


7 posted on 07/30/2011 7:20:30 AM PDT by ken21 (dem + rino progressives -- 150 years destroying america.)
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To: Adder

So, should I spit out the cyanide pill or what?


8 posted on 07/30/2011 7:20:30 AM PDT by Salamander (I'm your pain.)
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To: EBH
previous reports indicating that Congress would need to make $4 trillion in deficit cuts over 10 years to retain a triple-A rating were not accurate

Moody's and S&P blink. Obviously both are in the tank for the left. Everybody's posturng. Who can we trust?

9 posted on 07/30/2011 7:22:26 AM PDT by Calusa (The pump don't work cause the vandals took the handles. Quoth Bob Dylan.)
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To: EBH

10 posted on 07/30/2011 7:22:35 AM PDT by LibWhacker
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To: Adder

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.


11 posted on 07/30/2011 7:22:54 AM PDT by EBH ( God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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To: JPG

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.


12 posted on 07/30/2011 7:23:56 AM PDT by callisto (Who is John Galt?)
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To: Calusa
That would mean that there is a possibility of a downgrade in the future.

March 2013?

13 posted on 07/30/2011 7:24:30 AM PDT by EBH ( God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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To: EBH

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.


14 posted on 07/30/2011 7:24:38 AM PDT by Captain Peter Blood
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To: EBH
All I see is smoke and mirrors...

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.

15 posted on 07/30/2011 7:24:38 AM PDT by Zakeet (The Wee Wee's real birth certificate got shredded with his Rezko mortgage records)
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To: Brilliant

All the more reason to make 0bama pull a 14th.


16 posted on 07/30/2011 7:26:00 AM PDT by EBH ( God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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To: EBH
That would mean that there is a possibility of a downgrade in the future. March 2013?

That would be the globalist 'nuclear option' in the likely event the republicans sweep the elections on November 6, 2012.

17 posted on 07/30/2011 7:35:43 AM PDT by Calusa (The pump don't work cause the vandals took the handles. Quoth Bob Dylan.)
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To: callisto

what does IIRC mean


18 posted on 07/30/2011 7:36:00 AM PDT by yldstrk (My heroes have always been cowboys)
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To: EBH

The fix was and is in..... =.=


19 posted on 07/30/2011 7:39:28 AM PDT by cranked
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To: EBH
Raising the debt limit to save one's credit rating is like giving a second mortgage to a homeowner facing foreclosure - so he can make payments on the first mortgage. And the Washington geniuses and media guru's think this is so obviously smart.

Or, it is like raising the blood alcohol driving limit so the intoxicated alcoholic can now drive without arrest. Take your pick.

20 posted on 07/30/2011 7:43:56 AM PDT by JustTheTruth (Sometimes the Truth hurts so much that most refuse to face or accept it, even when it is obvious.)
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