Moodys: "fiscal adjustments of a magnitude that, in some cases, will test social cohesion" are nee

The US rating agency said the US, the UK, Germany, France, and Spain are walking a tightrope as they try to bring public finances under control without nipping recovery in the bud. It warned of "substantial execution risk" in withdrawal of stimulus.

"Growth alone will not resolve an increasingly complicated debt equation. Preserving debt affordability at levels consistent with AAA ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion," said Pierre Cailleteau, the chief author.

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Sounds exactly like the type of fix we need. SOcial cohesion needs to be tested and IMO, broken.

Only extreme measures will break the idea some people hold that government is the solution to every problem they face.

I'd say so! Shoot up ol dudes house, that was interesting. I really have a morbid curiosity as to who is going to play the game, let's up the ante.

Originally posted by brainwrek
Sounds exactly like the type of fix we need. SOcial cohesion needs to be tested and IMO, broken.

I read an article yesterday discussing the contradiction in Moody's threats. If they lower the credit worthiness of the Treasury from AAA to AA, logically they'd need to do the same for all the major banks that hold large amounts of T-bills. If they don't do this, they're playing politics, and are not acting impartially. Moody's had already been proven to be a joke. They gave AAA investment grade ratings to all of the derivative junk bonds that are still hanging around balance sheets like a noose. Why ? Because they were bribed by the banks to certify it.

If the economy ever got to the point where the US defaulted, all of the banks are already going to be under water. Your post got to the heart of the matter. Wall Street wants to privatize ss. Moody's bond ratings are not that objective.

Deficit in Logic: Moody's Threatens to Downgrade the United States
www.huffingtonpost.com...

[edit on 25-3-2010 by Schaden]

yeah it seems the same everywhere, they need more of our money because they didn't make it with their budgets, and on the other hand they can't take too much or we won't spend enough to keep the economy booming.

when is enough enough?

Yeah, I would give the US a AAA rating if I was the ratings firm. /s

Let's see, has not turned a profit in more than 40 years? Do not include Clinton years, they were robbing Medicare and SS to come up with those surpluses.

Over 100 Trillion in unfunded liabilities. 14 Trillion Debt.

Yeah, the US has a A rating at best. There is already threats being made to politicians.

Oh yeah, we are an excellent investment. Watch when the economy does the double dip. They cannot hide Freddie and Fannie for much longer, not to mention the commercial real estate debacle. Then bring in the housing market dip, again. Add that onto the increasing unemployment since this depression began. Unadjusted rates have increase each and every month. As for the depression component. The only reason GDP went up 4th quarter, the gov dumped all of the money into the economy, by all of their stupid ass ideas.

Yep, everything is peaches and cream, gumballs and raindow, I SEE GREEN SHOOTS.

Oh, forgot to mention. The congress is working on a DEFINITE economy killer. Cap and Tax.

Wooooohooooo Gotta love the LIES!

Best advice would be to FADE everything you hear from these ratings agencies. By the time they let you know it's already time to go the other way. In reality they are a lagging indicator IMO at least.