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Moody's Just Threatened To Slash The US Credit Rating

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posted on Jun, 2 2011 @ 05:47 PM
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I'm sure they took huge short positions on the buck and went loooooong gold and Euro prior to the release of that info.




posted on Jun, 2 2011 @ 06:00 PM
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Moodys is just making noise... they know good and well that if they actually did downgrade the AAA rating that their Rating Certification would be pulled....


... presumably for the Agency shortcomings/ misadventures between 2002 & 2007
when garbage toxic paper was rated AAA and pawned off to many EU banks and smaller investors...
... the same paper that the Federal Reserve has had to Re-purchase from all the worlds Central Banks,,,,
to the tune of more than $700 Billion USD~~
all this was quietly revealed in the court ordered (one time) opening of the Fed Reserve Book...



posted on Jun, 2 2011 @ 06:06 PM
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slash away

revoke those cards

that means those idiots cant borrow as much.






posted on Jun, 2 2011 @ 07:24 PM
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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



posted on Jun, 2 2011 @ 10:16 PM
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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

Way worse than that.

A ``government shut down`` is nothing compared to a ``technical default and downgrade of US credit rating``.

A government shut downs only gives forced non-paid vacations to a few thousands government employees for a few weeks.

A US credit rating downgrade possibly turns the US into Greece... A bankrupt country, sold to foreigners with riots everywhere, unemployment in the 10s of percents, food shortages, gas shortages, etc... And once the whole thing kicks in, we don't know how far it will go... Will the dollar be dropped as reserve currency? Troops will have to come home from all over the world. Forget medicare/medicaid. Hyperinflation. Etc... etc...

Not to mention what a US default would do to those who massive quantities of US dollars... Oil states... China, Japan, US TAXPAYERS... they would all be screwed. China and Japan would be freaking pissed. Japan would probably kick the US out of their country. China might take over SKorea/Taiwan... A US default is bad bad bad news. But the government and the FED have screwed the economy so bad over the last two decades that unless there would be a massive revolution tomorrow, and putting all the good people in the good place, I doubt the US could avoid it.

Remember 1981, when interest rates on 30 years bonds was 15%! If it was the case today, no way the US could pay it.

Total bond maturing by year :
2011 : $79B
2012 : $155B
2013 : $212B
2014 : $338B

It's gonna happen at some point, so let's do it already.
edit on 2-6-2011 by Vitchilo because: (no reason given)



posted on Jun, 2 2011 @ 10:19 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.


In a word: hyperinflation. Just as Glenn Beck warned. And I don't even like Glenn Beck anymore. But he's been warning us about this for a number of years. And he's right on target.

Stock up now before while you still have time...
edit on 6/2/2011 by this_is_who_we_are because: typo



posted on Jun, 3 2011 @ 01:12 AM
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reply to post by Vitchilo
 


Or maybe Moody's is a co-conspirator in a criminal enterprise to create a buy opportunity for some 'friends'.

Zerohedge had this interesting piece:




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.


More...



Amazing.
edit on 3-6-2011 by loam because: (no reason given)



posted on Jun, 3 2011 @ 01:16 AM
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reply to post by loam
 


Yep. Insider trading and corruption all rolled into one.

Moody is basically doing this to scare people so they pass a debt ceiling raise without cutting anything. Because they said to Pelosi they would not downgrade the US credit rating.

And in their own statement, they said they would ``review for a POSSIBLE downgrade``... and IMO they are crook enough to do their ``review`` and say that all is well... without laughing.



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