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Originally posted by 13th Zodiac
Someone please tell me,with the debt ceiling failure does this put America back were it was a little over a month ago with the troop wages and government workers being stood down ???Thanks
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.
Millionaire Investor Husband Know Too?
Moody's reputation for leaking inside information is well-known: after all it was one of its own employees, Deep "Throat" Shah, who leaked to infamous hedge fund Galleon information of upcoming LBOs. But at least that wasn't information originating from Moody's: the world's most incompetent rating agency was merely a conduit. Yet we were little surprised to learn that the firm that facilitated the housing bubble, and where such talking head apparatchiks as Mark Zandi reside, informed none other than House Minority leader Nancy Pelosi that it likely wouldn't downgrade the US debt as long as several weeks ago. Per Dow Jones: "Moody's earlier Thursday took the unusual step of warning that it might place the U.S. government's debt rating under review for a possible downgrade. The agency said the review would come if Congress doesn't make progress on raising the country's debt ceiling. Pelosi said she was alerted to the Moody's report just after House Democrats met with President Barack Obama at the White House. She said a few weeks ago she was in New York and the head of Moody's told her that it "would probably not downgrade, so this is interesting news today," she said. "But the fact is we cannot default" on the debt." We are relieved to learn that the head of Moody's, a firm which only last summer received a Wells Notice from the SEC, in an investigation which was promptly scuttled by powerful and rich people, takes its responsibility of protecting material, non-public information with such passion. Yet it is the topic of another leak of non-public information, and not Moody's criminal incompetence, that bothers us. Because as we noted last week, it is now proven scientifically that members of both Congress and Senate (especially democrats), tend to trade a littel too much on inside information. And even if not Ms. Pelosi, who precisely will guarantee us that Ms Pelosi's husband, multi-millionaire Paul Pelosi who just happens to be the owner of Financial Leasing Services, Inc., a San Francisco, California-based real estate and venture capital investment and consulting firm, did not procure the Moody's inside information courtesy of wagging tongues at Moody's and in his wife's mouth, and then proceed to trade accordingly. Alas, with the regulator in charge being the same one who let the whole Moody's investigation get deadended in record time, we are not hopeful of getting any information or justice. Ever.
From Dow Jones:
Pelosi said she was alerted to the Moody's report just after House Democrats met with President Barack Obama at the White House. She said a few weeks ago she was in New York and the head of Moody's told her that it "would probably not downgrade, so this is interesting news today," she said. "But the fact is we cannot default" on the debt.
When pressed a few minutes later about what Moody's told her, Pelosi said the ratings agency told her they "might not" downgrade the country's debt.
The country is set to default on its debt by Aug. 2 if Congress doesn't agree to raise the government's borrowing limit. Pelosi said all Democrats agree a default would have devastating consequences for the economy.
A downgrade of the government's debt could increase the country's borrowing costs.
And a little more on the mysterious Mr. Pelosi:
For more than 20 years, Paul Pelosi has been able to stay in the shadows, even as the millions he has made as a successful San Francisco financier and businessman have helped fuel the political career of his wife, Nancy.