As I mentioned in the previous post, once a ratings agency decides to cut the U.S. sovereign debt rating, it's goodnight to the U.S. life support system and perhaps the dollar itself.
In an article from earlier this morning from the Financial Times, Tracy Alloway writes "Moody’s warns on US finances."
Credit rating agency, Moody’s Investor Service, will fire a warning shot at the US on Monday, saying that unless the country gets public finances into better shape than the Obama administration projects there would be “downward pressure” on its triple A credit rating.
Examining the administration’s outlook for the federal budget deficit, the agency said: “If such a trajectory were to materialise, there would at some point be downward pressure on the triple A rating of the federal government.”
http://ftalphaville.ft.com/thecut/2010/03/15/174686/moodys-warns-on-us-finances/
Is Moody's trying to say they don't want healthcare to pass?
Actually, Moody's is kind of equivalent to a bug politically because they know once they downgrade the rating, they're basically destroying themselves. Believe me, we'll know the rating has been downgraded far before the actual event takes place.
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