Tick Tock Goes The Debt Clock: Easier to Default Than Walk The Walk? Posted during the previous Debt Debate. Updated based on comments by Moody's on USA Credit Rating. Moody's will be monitoring the outcome of the upcoming debt negotiations that will take place in Congress after the November election. The Congress must take some action to show management of deficits in the short and medium term. The debacle of the last debate cost our AAA credit rating with Standard and Poor's(S&P). The downplay of the S&P downgrade did work to deflect any negativity from loss of the AAA credit rating with S&P. However, Moody's is a different story for the United States. A reevaluation by Moody's to lower the coveted AAA credit rating of the United States of America may be the first domino to fall in a debt crisis that would cripple any austerity measures taken by the political leadership. The loss of confidence in America's credit worthiness would be a disaster unimaginable in … [Read more...]
