MOODY'S RATINGS: US's triple-A credit rating 'under threat'

[walt]

Wow. I hope like hell this gets talked about in the campaign! :eek:

That is a nasty shot over the bow by Moody's...

http://www.forbes.com/markets/feeds/afx/2008/01/11/afx4519934.html

http://www.reuters.com/article/bondsNews/idUSN1017237120080110


US's triple-A credit rating 'under threat'

By Francesco Guerrera, Aline van Duyn and Daniel Pimlott,in New York

Published: January 11 2008 02:00 | Last updated: January 11 2008 02:00

The US is at risk of losing its top-notch triple-A credit rating within a decade unless it takes radical action to curb soaring healthcare and social security spending, Moody's, the credit rating agency, said yesterday.

The warning over the future of the triple-A rating - granted to US government debt since it was first assessed in 1917 - reflects growing concerns over the country's ability to retain its financial and economic supremacy.
http://www.ft.com/cms/s/fcc631cc-bfe6-11dc-8052-0000779fd2ac,Authorised=false.html?_i_location=htt p%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Ffcc631cc-bfe6-11dc-8052-0000779fd2ac.html%3Fnclick_check%3D1&_i_referer=http%3A%2F%2Fwww.drudgereport.com%2F&nclick_check=1

[jake]

they must be real generous in their ratings if this is just happening now

[Anti Federalist]

Junk Bond status.

When that happens, look at the interest rates that have to be paid in order for anybody to buy your worthless bonds and securities.

Worse is Better and You Have Been Warned are my two new mottoes.

[itshappening]

they rated all those mortgage securities triple A once

the ratings companies dont know sh!t or are just shilling for Banks

[walt]

Great points - already!

Prior to 9/11, I made six figures in the bond market. Now I'm a few months from being homeless and can't find meaningful work. Please PM me if you have leads to roles in financial services...

The entire bond market trades off the concept that the US Treasury yield curve is the risk free rate. It will all be thrown into choas if this happens.

Example: Rating agencies kept Enron's ratings invstment grade right until the very end:
http://www.standardandpoors.com/europe/francais/Fr_news/Enron-Ratings-Chronology_18-03-02.html

http://www.cartoonstock.com/lowres/shr1193l.jpg

[walt]

http://www.digg.com/business_finance/US_might_lose_triple_A_Credit_Rating_since_1917_Mo ody

NICE - Please give this some pro-Ron Paul comments - thanks to whoever submitted this.