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Moody's Just Threatened To Slash The US Credit Rating

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posted on Jun, 2 2011 @ 01:45 PM
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Moody's Just Threatened To Slash The US Credit Rating


www.businessinsider.com

Moody's is out with a comment saying that if there's no imminent progress on the debt ceiling fight, the US credit rating will be cut.
(visit the link for the full news article)




posted on Jun, 2 2011 @ 01:45 PM
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And finally, YEARS LATER, in ONE AREA, Moody is doing their job...

This is in response to congress failing to pass a debt ceiling raise yesterday.

Now just look for the lemmings in congress to pass a hike in the debt ceiling saying that they HAD to do it, otherwise the US economy would have lost it's triple AAA rating... (which it should have lost a long time ago due to ponzi scheme economics)

Moody's Says It Expects To Place US Rating For Downgrade Review If No Progress On Increasing Statutory Debt Limit

From Moodys, which now appears to have been hacked by Greece (in what may or may not be considered an act of war): "If the debt limit is raised and default avoided, the Aaa rating will be maintained. However, the rating outlook will depend on the outcome of negotiations on deficit reduction. A credible agreement on substantial deficit reduction would support a continued stable outlook; lack of such an agreement could prompt Moody's to change its outlook to negative on the Aaa rating....Although Moody's fully expected political wrangling prior to an increase in the statutory debt limit, the degree of entrenchment into conflicting positions has exceeded expectations. The heightened polarization over the debt limit has increased the odds of a short-lived default. If this situation remains unchanged in coming weeks, Moody's will place the rating under review." Translation: unless America promises to increase its total debt to 120% of GDP in one year, the current debt which is just under 100% will be downgraded.

Ooooo.

Update : From mister Boehner :

Republican speaker Boehner says Moody's statement underscores need for White House to get serious about deficit and debt


www.businessinsider.com
(visit the link for the full news article)
edit on 2-6-2011 by Vitchilo because: (no reason given)

edit on 2-6-2011 by Vitchilo because: (no reason given)



posted on Jun, 2 2011 @ 01:49 PM
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I'm admitting ignorance here, in the hope of denying it, but what exactly would happen if our credit rating were slashed? I think I sort of have a grasp on it, but I'm not 100% sure.



posted on Jun, 2 2011 @ 01:52 PM
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Originally posted by countduckula24
I'm admitting ignorance here, in the hope of denying it, but what exactly would happen if our credit rating were slashed? I think I sort of have a grasp on it, but I'm not 100% sure.

Interest on the debt would rise... and quite fast since most ``investors`` are buying short term treasuries because they don't believe in the US long term.

It would means cutting programs (due to higher payment on the debt) or running a bigger deficit...

Anyway it's not good.



posted on Jun, 2 2011 @ 01:52 PM
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There are worse things than having a double A credit rating rather than triple. We should take our time figuring out the best ways to reduce spending rather than just raising our credit ceiling.



posted on Jun, 2 2011 @ 01:52 PM
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Well the markets must not have gotten the news. Still rallying from a 80pt defecit, must be the Chicken Little effect.



posted on Jun, 2 2011 @ 01:53 PM
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reply to post by Vitchilo
 


Oh OK cool, thanks for the reply. I pretty much assumed it would be a bad thing. But like I said I wasn't positive on what it meant. Anyway thanks again!



posted on Jun, 2 2011 @ 02:00 PM
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Originally posted by Vitchilo[/i]And finally, YEARS LATER, in ONE AREA, Moody is doing their job...




Too funny

Sub Prime Derivatives are grade A!!!



Moody can sit on a volcano



posted on Jun, 2 2011 @ 02:05 PM
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reply to post by Janky Red
 


Indeed. This is what I was referring to. Moody, SP and Fitch are a joke.... and may I suggest we condemn all those executives to Fukushima duty till death?



posted on Jun, 2 2011 @ 02:11 PM
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Originally posted by Bordon81
There are worse things than having a double A credit rating rather than triple. We should take our time figuring out the best ways to reduce spending rather than just raising our credit ceiling.


Did anyone mention an Double A (AA) rating. what if they do an actual ratiings analysis and place US bonds as Junk?

This is not a possibility I hear you so. No WAY!

Really? is is that Improbable. Look at Greece, Look at Ireland. the only thing between the US and Zimbabwe is the US D reserve currency, and the main investors are abandoning that faster than rats from a sinking ship.

I don't mean to be down beat about it. I just think the time for Jingoism is long gone. and there are some vert HARD realities coming to us all very soon!.



posted on Jun, 2 2011 @ 02:15 PM
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reply to post by Vitchilo
 


LOL!!!
Buhring it!
Slashing the credit rating on a dead dollar = beating dead horse, Yes?
Yeah, threaten all they want, some of us avoid credit like the atomic herpes.

Get your affairs in order folks!



posted on Jun, 2 2011 @ 02:15 PM
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Did Moody's just paint a target on themselves?
hmmm..
Anyway, wishful thinking on my part.

I'm guess they have to say something to make it seem the game is not as rigged as it really is..



posted on Jun, 2 2011 @ 02:18 PM
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I am sure the market will react accordingly to this announcement.

It will be tenderhooks until it is resolved and I am guessing, the end is nigh..

Hope I am wrong.

At least there will be some sort of resolution in the end



posted on Jun, 2 2011 @ 02:24 PM
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Originally posted by Vitchilo

And finally, YEARS LATER, in ONE AREA, Moody is doing their job...


And since Moodys inability to do their job played a big role in our getting into this situation, (and ending in bailouts and stimulus packages costing trillions) I think Moody can just shove their rating right up their snip.



posted on Jun, 2 2011 @ 02:46 PM
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Originally posted by Illusionsaregrander

Originally posted by Vitchilo

And finally, YEARS LATER, in ONE AREA, Moody is doing their job...


And since Moodys inability to do their job played a big role in our getting into this situation, (and ending in bailouts and stimulus packages costing trillions) I think Moody can just shove their rating right up their snip.

Yep. Nobody from Moody, SP or Fitch is in jail for their ``triple A rating`` scam... and they admitted they were getting paid by the big banks to give crap triple A ratings.

NOBODY WENT TO JAIL OVER THIS.



posted on Jun, 2 2011 @ 03:29 PM
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reply to post by guessing
 





I am sure the market will react accordingly to this announcement.


The Dow Jones closed down -41.59 at 12,248.55 so the news is probably already priced in.

The US doesn't want to go down the road Greece took, they are paying over 5 percent on new loans where they can get them.. Default would be inevitable if that happened.


edit on 2-6-2011 by Bordon81 because: (no reason given)



posted on Jun, 2 2011 @ 04:06 PM
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the world needs to recognize that the US if being run by a bunch of fruitcakes and come with the straightjackets and take them away!!
so, let's see if I got this straight.....
our congress can't agree to raising our debt limit.....
so....the fed is raiding the fed employees retirement fund to keep the US going....
so....moody's is threatening, hoping to encourage congress to raise it, and borrow more!!

and obama gave how much money away last month to his buddies overseas????????


when do they just stop spending insanely???
till they do that, nothing they say is carrying much meaning whatsoever to me...
if it's as bad as they say it is, well....they'd be white as a ghost and wouldn't be borrowing money to give away to "our friends" overseas!! they are playing us!!!

or well, where's the straightjackets??



posted on Jun, 2 2011 @ 04:26 PM
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reply to post by dawnstar
 


You are actually right. Our leaders are insane. And so are the people who bribe them. Although quite frankly, I think MOST of humanity is insane right now.

There are a few sane voices trying to point out that "growth" (in economies, in population, in many ways) is simply not sustainable and we need to figure out a different way to do things, or everything is going to come crashing down.

And then in one area, (economic) it DID come crashing down. So much so, that the little people of the world had to bail the big guys out in several places. And what do the big guys do? Realize, "Hey, something is wrong here, there is a serious flaw in the model. We should sit down and try to figure out what it is and correct it."

No, thats not what they do at all. They take the money, and continue doing exactly what they were doing before, only more so. Expecting a totally different outcome next time. And this is far from the first time a push to "exponential growth" has collapsed an economy or civilization, and my guess is we are going to have at least one more big crash in our future. Probably sooner rather than later.

Which is insane.



posted on Jun, 2 2011 @ 04:51 PM
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reply to post by Vitchilo
 


Let the US collapse. That must be what it will take to start over again. Of course I have no idea what the implications of that would be. But, this system now certainly isn't working to anyone's advantage that I know of!



posted on Jun, 2 2011 @ 05:44 PM
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Ive been watching Moodys and this is not the first time they said this. So far i think its the 3rd time. There argument is if we dont incress our debt ceiling then they will slash our rating
what a crazy world. I wounder whos payroll there on



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