Moody's set to downgrade US without budget deal

[Omaha Steve]

Source: AP-Excite

NEW YORK (AP) - The U.S. government's debt rating could be heading for the "fiscal cliff" along with the federal budget.

Moody's Investors Service on Tuesday said it would likely cut its "Aaa" rating on U.S. government debt, probably by one notch, if budget negotiations fail.

If Congress and the White House don't reach a budget deal, about $1.2 trillion in spending cuts and tax increases will automatically kick in starting Jan. 2, a scenario that's been dubbed the "fiscal cliff," because it is likely to send the economy back into recession and drive up unemployment.

A year ago, Moody's cut its outlook on U.S. debt to "negative," which acts as a warning that it might downgrade the rating, after partisan wrangling over raising the U.S. debt limit led the nation to the brink of default.

FULL story at link.


Read more: http://apnews.excite.com/article/20120911/DA17SNBG1.html

[proud patriot]

1. hello republicans hello McFly!

[liberal N proud]

2. Fault the obstructionist Congress

But watch them and the media blame Obama.

[PSPS]

3. Big deal

The GOP obstruction is their usual 'baggerism. But these stories are written as if a downgrade would be a big deal. The last 'bagger downgrade was supposed to be the end of the world, but it had no effect at all on auctions (they've all been fully subscribed) or interest rates. I mean, what other investment has a lower risk? Greek bonds?

[blkmusclmachine]

4. Hostage taking

IMO, of course.

[oldsarge54]

5. Isn't

Isn't taking hostages the definition of terrorists?

[durablend]

6. BOOGA BOOGA BOOGA

"GET RID OF SOCIAL SECURITY OR WE SHOOT THE HOSTAGE!"

[dixiegrrrrl]

7. In light of Moody's being caught selling its ratings

does anyone take them seriously now?