Moody's may shift U.S. rating outlook on tax package

[abelenkpe]

Moody's may shift U.S. rating outlook on tax package

http://news.yahoo.com/s/nm/20101213/bs_nm/us_usa_ratings_moodys;_ylt=AmXI9o6xZ25sqhB.OXd288OyBhIF;_ylu=X3oDMTJtdHZsZjNtBGFzc2V0A25tLzIwMTAxMjEzL3VzX3VzYV9yYXRpbmdzX21vb2R5cwRjcG9zAzEEcG9zAzIEc2VjA3luX3RvcF9zdG9yeQRzbGsDZnVsbG5ic3BzdG9y


NEW YORK (Reuters) – Moody's warned on Monday that it could move a step closer to cutting the U.S. Aaa rating if President Barack Obama's tax and unemployment benefit package becomes law.

The plan agreed to by President Barack Obama and Republican leaders last week could push up debt levels, increasing the likelihood of a negative outlook on the United States rating in the coming two years, the ratings agency said.

A negative outlook, if adopted, would make a rating cut more likely over the following 12-to-18 months.

(more at link)

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[MadHound]

1. And then watch all hell break out

If we get our rating stripped, our position as the world's reserve currency, as the petrodollar, and all the perks that come with those things goes out the window. We will start paying through the nose for people to buy our debt, and will face severe austerity cutbacks. It may not be the end of this country, but it will be really, really, Great Depression or worse type of ugly.

[Lucky 13]

2. No matter.

Nothing will matter to them until we are rioting in the streets like in Greece... and maybe not even then.

The ruling class has the upper hand. We are to take what they proclaim upon us.

[hobbit709]

3. I guess Uncle Sam didn't pay them like Wall St. for high ratings on the derivatives.

[Javaman]

4. Don't worry, they will be thoroughly bribed to keep the rating in place.

whatever you do, never ever look behind the curtain, the man from oz won't like that.

We are such a charade.

[nadinbrzezinski]

5. You mean the IMPERIAL CRISIS will be here this year?

I only gave it a 50% chance of THE NEXT 12 Months just yesterday...

This will raise it to at least mid 50s....