Moody’s Archive

MMT to Moody’s- confirm US as AAA on ability to pay

This is an opening for Moody’s to gain a competitive advantage over S&P. Moody’s can announce that whereas any issuer of it’s own currency can always make nominal payment on a timely basis, ability to pay is absolute and beyond question for the US government. Therefore, when reviewing the US government’s credit ...Read More

Economy Faces a Jolt as Benefit Checks Run Out

When there is a lack of aggregate demand due to high ‘savings desires’ as the unemployed take jobs when benefits expire, it just means someone else loses a job, and then some, as govt deficit spending falls as well, further reducing aggregate demand. It also serves to drive down wages, as per ...Read More

CBO Congressional Report- U.S. Could Face European-Style Debt Crisis

How about the accounts sticking to accounting. Just in case you thought there was any hope: But most ominously, the CBO report warns of a “sudden fiscal crisis” in which investors would lose faith in the U.S. government’s ability to manage its fiscal affairs. In such a fiscal panic, investors might abandon ...Read More

Moody’s Analyst: Weak Growth, Fiscal Slips Could Lose UK ‘AAA’

The wonder is how Moody’s keeps it’s prized credibility and Sarah Carlson her prized job. Moody’s Analyst: Weak Growth, Fiscal Slips Could Lose UK ‘AAA’ Jun 8 (MNI) — The UK could lose its prized ‘Aaa’ credit rating if growth remains weak and the coalition government fails to meet its fiscal consolidation ...Read More

DJ Moody’s:US Rating Could Be Negatively Affected by Tax-Cut Extension

Just in case you thought Moody’s knew anything about sovereign debt. And how about those Democrats are using deficit terrorist rhetoric to try to fight back against the Republicans. *DJ Moody’s Says US Sovereign Debt Rating Stable For Now *DJ Moody’s:US Sovereign Debt Rating Stable Following Tax-Cuts Decision *DJ Moody’s:US Rating Could ...Read More

Anti US bias at Moody’s?

[Skip to the end] Debt ratios are far higher in the Eurozone than the federal govt in the US, and the eurozone national govts are subject to liquidity crisis risk much like the US States. Could there be some kind of anti US bias at Moody’s??? Rising Debts in Europe Won’t Trigger ...Read More

From the same ratings agency looking to downgrade the US

[Skip to the end] Germany Retains `Stable’ Rating Outlook at Moody’s Amid Crisis By Rainer Buergin Nov. 24 (Bloomberg) — Germany retained a “stable” outlook at Moody’s Investors Service on its Aaa government bond ratings even as the financial crisis puts strains on public coffers, the rating company said today in an ...Read More

Fed relying on ratings agencies?

[Skip to the end] Ironically (?) after reading all the criticism of private sector lenders relying on ratings agencies rather than internal analysis I see this: GE to use Fed’s commercial paper facility next week By Rachel Layne and Scott Lanman The Fed is setting up the special fund to buy commercial ...Read More