BREAKING: Moody's says it may downgrade US credit rating.

[originalpckelly]

http://www.cnbc.com/id/43746061

"The United States may lose its top-notch credit rating in the next few weeks if lawmakers fail to increase the country's debt ceiling, forcing the government to miss debt payments, Moody's Investors Service warned Wednesday.

Moody's was the first among the big-three rating agencies to place the United States' Aaa rating on review for a possible downgrade, which means a negative rating action is impending.

In a statement, Moody's said it sees a "rising possibility that the statutory debt limit will not be raised on a timely basis, leading to a default on U.S. Treasury debt obligations."

The move wasn't completely unexpected: The credit-rating agency had warned in early June that a ratings review was likely in mid-July if there wasn't "meaningful progress" in discussions to raise the debt limit."

[dennis4868]

1. Obama's fault

[DonCoquixote]

2. really?

Not that fellow Bush?

[originalpckelly]

3. Really?

I thought the Congress was part of this nonsense too?

[Cali_Democrat]

4. That's absurd. n/t

[spanone]

5. pffffft

[CakeGrrl]

7. You forgot!

:sarcasm:




Sometimes it's needed.

;-)

[dennis4868]

26. sorry about that....

I WAS BEING SARCASTIC.....People here blame Obama for everything so just to be sarcastic I made the post...hahaha!

[robinlynne]

27. I'm so glad. I thought you might be a visiting Republicon. And I'm one of those

blaming Obama for a lot of things!

[dennis4868]

28. yeah most people here do blame...

Obama (and not congress) for all the worlds problems...I am not one of those for sure!

[robinlynne]

32. I blame Obama for being right wing, when he had national support to be a progressive,

not for the whole world's problems.

[nadinbrzezinski]

11. REALLY? If I go that far I will blame everybody

[KamaAina]

14. Nonsense.

It's the Clenis' fault. It's always the Clenis' fault.

[11 Bravo]

19. Heads: Your sarcasm smilie has become temporarily disabled. Tails:

You're a fucking idiot.
(As one who eschews the use of the sarcasm smilie because sometimes it just shouldn't be necessary, I'm leaning towards heads. However, these are strange days at DU, so you might wish to clarify.)

[phleshdef]

23. LOL.

[DearAbby]

6. Twisting the screws.

Times up Congress.

[chill_wind]

9. Yep. n/t

[okieinpain]

8. ha, lets see american get that zero financing for that chevy cruze

now.

[nadinbrzezinski]

10. Ah the begginings of what happens

when ANY nation starts looking like it may default...

[no_hypocrisy]

12. Make up your minds now John, Mitch, and Eric.

Stop playing with yourselves and vote up or down whether to raise the debt ceiling.

[gulliver]

13. Nice job Republican House!

This should finish them for 2012. Just getting us put on review should finish them. If our rating drops, the Republicans will have well and truly screwed the pooch--again. The people who brought us Bush and the Great Recession have done it again. They thought it would impress their Tea Party flakes to play chicken with the United States' creditworthiness.

And they were too freakin' stupid to realize that default was not the only risk, that merely playing chicken would be enough to damage our reputation. Republican geniuses probably thought they could just pull the plane out of the dive they put it into at the last second. Get these proven idiots out of power.

[Bozita]

15. How in the hell is Moody's still in business? And why are their execs not in prison?

What happened to accountability?

[chill_wind]

18. Good point.

"One can’t judge what Standard & Poor’s or Moody’s will do, because they’ve gotten most everything else wrong in the last decade. These are firms that graded vast mounds of worthless mortgage-backed paper as AAA because of the crafty ways it was securitized. These are firms that never to my knowledge downgraded a major corporate fraud—Enron and so forth—more than a few days in advance of its collapse. And they routinely give cities lower ratings than they should based upon the default rates on those instruments. They have no particular competence in Europe, either. So, it’s a little bit unpredictable what a corporation with that track record is going to do. "

Interview with James Galbraith (May) on the doomsday predicitons

http://prospect.org/cs/articles?article=qa_china_will_not_demand_their_money_back#

[originalpckelly]

20. It's a pretty reasonable logical statement.

If we can't pay up, then it makes sense to lower our credit rating.

[robinlynne]

31. but read the reply above yours. Remember the economic collapse? the creidt agenices had a LOT to do

with it. they were giving good credit ratings to junk pieces of paper over and over. They were a big part of the economic collapse.

[myrna minx]

16. Way to go republicans!

:puke:

[chill_wind]

17. Bloomberg (this morning)

Mark Zandi, chief economist at Moody’s Economy.com, said markets are comforted, at least to a degree, with McConnell’s plan because it suggests that lawmakers recognize the gravity of a default.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x613420

[Newest Reality]

21. What happens if

We The People rate Moody's as pure junk?

They are.

[originalpckelly]

25. Hey, they may have fucked up before...

but if we can't pay up, there's no reason not to say that. Our rating should go down, that's how it works.

[Name removed]

22. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Shagbark Hickory]

24. It should! They'd be crazy not to.

[CleanGreenFuture]

29. Who gives a fuck what Moody's thinks? They should be shut down and their

principals prosecuted for their corrupt bullshit that helped bring down the economy.

[QC]

30. The same Moody's that gave AAA ratings to piles of suicide mortgages?

That Moody's?

[indurancevile]

33. who cares? another corrupt "ratings" agency

that gave bad companies top ratings during the credit bubble.

their "ratings" are garbage, corrupt & politicized.

"As the housing market collapsed in late 2007, Moody's Investors Service, whose investment ratings were widely trusted, responded by purging analysts and executives who warned of trouble and promoting those who helped Wall Street plunge the country into its worst financial crisis since the Great Depression. A McClatchy investigation has found that Moody's punished executives who questioned why the company was risking its reputation by putting its profits ahead of providing trustworthy ratings for investment offerings."<7>

Credit rating agencies such as Moody's have been subject to criticism in the wake of large losses in the asset-backed security collateralized debt obligation (ABS CDO) market that occurred despite being assigned top ratings by the credit rating agencies. For instance, losses on $340.7 million worth of ABS collateralized debt obligations (CDO) issued by Credit Suisse Group added up to about $125 million, despite being rated Aaa by Moody's.<5>

http://en.wikipedia.org/wiki/Moody%27s

btw, warren buffett owns a big chunk of it.

on edit: i see i'm not alone in my "who cares?" take. good deal.