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Moody's threatens to downgrade US Debt Rating

http://finance.yahoo.com/news/Moodys-wa ... et=&ccode=

They should have downgraded it long ago. But, they are always late to the dance, aren't they.

Whats the saying "you can't polish a turd!"

Moody's (and S&P, Fitch et al) do the bidding of the banks. That is how garbage mortgages got rated AAA. The banks want the debt ceiling raised, threatening a downgrade helps insure that. The debt ceiling will be raised. Spending will not be cut, and will continue to increase. The banks will profit from the increased debt, and everyone will forget Moody's threat until they need to rinse and repeat.

The banks run the country. Politicians are just there to keep the masses riled up.

S&P beat Moodys to the punch... we'll see what happens to the markets as more rating companies jump on board

Delawhere Jack wrote:Moody's (and S&P, Fitch et al) do the bidding of the banks. That is how garbage mortgages got rated AAA. The banks want the debt ceiling raised, threatening a downgrade helps insure that. The debt ceiling will be raised. Spending will not be cut, and will continue to increase. The banks will profit from the increased debt, and everyone will forget Moody's threat until they need to rinse and repeat.

The banks run the country. Politicians are just there to keep the masses riled up.

Here's a different take on the subject. The Fed is just looking for another reason to keep the spigots turned on full flow (QE3 and more). Could they have, behind the scenes, URGED the ratings agencies to downgrade the debt, providing their excuse to continue business as usual???

beauanderos wrote:

Delawhere Jack wrote:Moody's (and S&P, Fitch et al) do the bidding of the banks. That is how garbage mortgages got rated AAA. The banks want the debt ceiling raised, threatening a downgrade helps insure that. The debt ceiling will be raised. Spending will not be cut, and will continue to increase. The banks will profit from the increased debt, and everyone will forget Moody's threat until they need to rinse and repeat.

The banks run the country. Politicians are just there to keep the masses riled up.

Here's a different take on the subject. The Fed is just looking for another reason to keep the spigots turned on full flow (QE3 and more). Could they have, behind the scenes, URGED the ratings agencies to downgrade the debt, providing their excuse to continue business as usual???

Agreed. Not necessarily a different take though. They -- Moody's -- accomplished goal number one, raise the limit, then S&P got called off the bench to accomplish goal number two, lower the rating, thereby crushing equities.

Say hello to QE3 within weeks if not days.

Here is round #1 of retribution for the downgrade: http://finance.yahoo.com/news/Is-U-S-Ge ... l?x=0&.v=1