Moody’s Says U.S. Debt Could Test Triple-A Rating

This is not too good.

Even our bonds will soon be dumped!




The gold-plated credit rating of the United States — an article of faith across America and, indeed, around the world — may be at risk in coming years as the nation copes with its growing debts.
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Payback Time: Corporate Debt Coming Due May Squeeze Credit

Times Topic: Moody's Corporation
That sobering assessment, issued Monday by Moody’s Investors Service, provided a reminder that even Aaa-rated United States Treasury bonds, supposedly the safest of safe investments, could be downgraded one day if Washington failed to manage the federal debt.

Moody’s said the United States and other major Western nations, particularly Britain, have moved “substantially” closer to losing their gilt-edged ratings. The ratings are “stable,” but “their ‘distance-to-downgrade’ has in all cases substantially diminished,” the credit ratings agency said.

A downgrade would affect more than American pride. The bigger risk would be to the country’s ability to keep borrowing money on extremely favorable terms, and therefore to keep spending more money than it takes in from tax revenue.

A credit rating lets lenders and investors know how likely it is that a borrower can pay back a loan. A sterling rating means there is little for lenders to worry about. A lower one typically results in bond investors demanding higher interest rates on debt.

Those higher rates, in turn, add to the country’s overall debt burden and can force the government to reduce spending, increase taxes or both. That difficulty has been well-illustrated recently in Greece and Portugal, with strikes and protests as citizens march in the streets to oppose tough austerity measures that directly reduce entitlements and state benefits.

 

nuke the moody offices..assault them with high precision missiles and drones... they are financial terrorists..trying blow up US financial system..

nah...they not going to do anything about US debt...it's just un-american

 

The dollar will never falter. It is as solid as gold.

 

Old news, this has been bantered around for for a while.

:eek:

 

Obummer will just bail out Moody's and set his own credit ratings.

 

raid the office in the name of "defending the constitution"

 

Has anything been done about it????

it won't just go away on it's own

 

too funny...

 

Nothing will be done until the world collapses, then revolution, then new government. Has been and always will be this way.

Quote from trader07:

Old news, this has been bantered around for for a while.