Moody's: Neither debt plan protects the nation's AAA rating
But wait! Haven't we been hearing all along we just need to increase the debt ceiling and all will be well? Guess not.
Further:
So will default...we won't default...we will get downgraded anyway? How can anyone keep track of this theatre of the absurd?
The "limited magnitude" of both debt plans put forward by congressional leaders would not put the nation's AAA credit rating back on solid footing, Moody's Investors Service announced Friday.
"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," the credit rating agency said in a new report. "The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high."
But wait! Haven't we been hearing all along we just need to increase the debt ceiling and all will be well? Guess not.
Further:
"It remains our expectation that the government will continue with timely debt service....If the debt limit is not raised before August 2, we believe that the Treasury would give priority to debt service payments and could thus postpone a potential debt default for a number of days...Revenues would be more than adequate for some period of time to meet those payments, although other outlays would be severely reduced as a result."
So will default...we won't default...we will get downgraded anyway? How can anyone keep track of this theatre of the absurd?