GET OFF THE POT!
Moody's Threat of US Downgrade Departure from S&P's Warning
By Elizabeth MacDonald
Published June 02, 2011
| FOXBusiness
Compare and contrast the downgrade threats from Moody's Investor] Services today with Standard & Poor's warning back in April and you'll see Moody's cites the debt ceiling fight in Washington, whereas S&P assiduously does not.
Why do I bring that up? Because it underlines the politically charged nature of a downgrade threat, which is bearish for the U.S. dollar. Citing the debt-ceiling fight puts pressure on DC negotiators to hammer out a deal. S&P was more sanguine that a deal would be reached, but it is more worried there is no credible plan to tackle the $14 trillion in debt, which is more than the entire Eurozone and is more than China and Japan combined.
Here's what Moody's said, emphasis mine:
Read more: http://www.foxbusiness.com/markets/2...#ixzz1O9w54eTo
would this swing the market up side or down side? was watching CNBC earlier and they say this would make the market bounce O_o
Im threatening to downgrade my opinion of Moody's right now. There! I bet they are shaking in their boots.
I like TSPTalk and I think most people here are well-intentioned but if I followed their advice, I'd be hunkered down in my basement with a thousand cans of tuna fish.
Why would anyone reduce the United States' debt rating?
I mean, we have been able to 'pay' our debt with more debt for years!!!
What could possably go wrong
Lookin' up at the 'G Fund'!!!
I've got a bad feeling the debt limit agreement won't happen. When both sides say " both sides agree we have to raise debt ceiling" , this is code for " we ain't going to do it"It's a game of chicken with all of us standing in the spot where the cars crash. I got a feeling no one will turn away.So, where is the best place for tsp funds in this case? G fund or F fund?
100 G
RSI - Relative Strength Indicator DMA - day moving average
I agree Malyla,
The Treasury has a mandate to pay its debt before paying anything else. You have to pay your mortgage or rent before you pay anything else - otherwise you end up outside. Governments must pay their debts or they cannot borrow. Very simple.
Our debt payment for August 2011 will be about $30 Billion. (Page 5, MTS August 2010 + this years estimated growth)
Our revenue has been growing this year. We should have about $180 Billion. (Estimate from above source and noting revenue growth of about $20 Billion/month)
Pay the debt with the first dollars, then prioritize and pay the rest.
Let the politics begin after we pay our debt. That is THE discussion that should be taking place. It might be of interest to the folks out there that we run August deficits under this President that EXCEED the cost of an entire year of our War on Terror (or Kinetic Whatever) effort.
Moody's and S&P will not downgrade debt that is being prompty paid. They will soon downgrade debt that grows beyond prompt payment. Anyone think running deficits of $100 Billion a month will last without massive increases in interest costs and a significant downgrade in credit worthyness.
Folks are only looking at part of what Moodys and S&P are saying.
Lookin' up at the 'G Fund'!!!
I wonder how much the government pays for their poverty program known as the Earned Income Tax Credit? If you have illegitimate children as a single mother you get an extra payment. If Obummer cuts spending he will lose the valuable minority free vote. Honestly, I wish we could get away from the propensity of licentious liberals and bring back the stigma of illegitimacy with shame.
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