Moody’s says we Aaa-ok
Moody’s said that the US govt’s Aaa rating is stable “even with a
significant deterioration in the US govt’s debt position.” They said due
to a diverse and resilient economy, strong gov’t institutions, high per
capita income, and a central position in the global economy, “Moody’s
expects that US economic strength will emerge after the crisis without
major impairment” and “the global role of the US currency also
contributes to the ability of the economy and govt finances to rebound.”
A nice way of saying the govt can print its way to paying off its debts
since the $ is the reserve currency. They said the level of debt is less
important than the US govt’s balance sheet flexibility, which is still
high. Going forward, “how the economy and fiscal policy fare after the
recession will be key and the…contingent liabilities of Social
Security and Medicare could also pressure the rating.”
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May 27th, 2009 at 2:23 pm
There is a Treasury auction in progress as I type, right? And the yield on the 10-yr. is ascending Mt. Everest, right?
May 27th, 2009 at 2:43 pm
Didn’t Moody’s have AIG as Aa2 until after they lost their a$$ ?
May 27th, 2009 at 3:05 pm
I’m sure there’s a feeling that it would be un-patriotic to downgrade U.S. debt obligations. They’re (all the major rating agencies) too politically connected to be totally objective.
May 27th, 2009 at 4:35 pm
I find it very interesting that the bond market implodes on the very day Moody’s comes out and tells us there is no problem. Amazing, er, coincidence….
May 27th, 2009 at 7:51 pm
BnT
LOL! The timing of these @$$hats is unbelieveable! I think Geithner rang them up and said he was having trouble with the auction and it would be helpful if they took one for the team.