Tuesday, July 26, 2011

Moody's Don't Play Kabuki

The debt ceiling is a secondary issue. The amount of debt is the real issue:

Only seven days stand between the U.S. and the effects of a credit default. But a downgrade of the nation’s stellar AAA credit rating seems a lot more likely, and a lot sooner.

The White House had been alerted repeatedly over the past month by rating agencies that without a strong, long-term plan to restructure the country’s debt, they would lower America’s credit rating as soon as this Friday, according to two officials familiar with the process. The White House was warned that the deal would have to be significant—and not a short-term fix over the next few days to avoid a credit drop.

We can't keep spending money we don't have. The party is over.

1 comment:

Bike Bubba said...

True, but it does appear that the Democrats are trying to do their best imitation of Belshazzar and his buddies partying (Daniel 5) while the Medes and Persians were beseiging Babylon--and would of course take it that night.

More or less, the Democrats are missing/ignoring the fact that the Persians have almost succeeded in diverting the Euphrates. Scary times!