Posts Tagged ‘Moody’s’

Moody’s Downgrades America’s Debt

Posted by Troy on 25th July 2011 in Current Events, Political

Everyone is worried that Moody’s will downgrade America’s debt if we do not raise the debt limit.  I would like to point out that this is ridiculous.  Imagine if you went in to get a loan and you already had three mortgages on your house.  The debt officer tells you that you that he can’t give you a loan because you’re becoming a bad credit risk.  Do you think that his opinion is going to improve because you come back and tell him you just got a new credit cards?

Moody’s downgrades based upon the entity’s ability to pay.  Right now, we have run-away spending, and Moody is beginning to doubt we can do that.  If they read you the entire report, Moody says that in order to not downgrade our debt, we would have to raise the debt ceiling AND put into place spending cuts and systematic reforms.  Lets see if we can get Cut, Cap, and Balance.

Long Live the Constitution!