Thread: Moody's Downgrades The Whole Country's Debt

Moody's Downgrades The Whole Country
Joe Weisenthal|Apr. 8, 2009, 8:33 AM|16
PrintTags: Investing, Debt
The Federal government is still AAA, but every municipal debt issuer is now suspect and shaky according to Moody's.

For the first time ever, the ratings agency placed all munis on negative outlook, a precursor to potential downgrades. Historically, the agency looked at munis individually and considered them to be too diverse to make blanket statements about.

But it seems overspending and the hollowing out of the revenue base is a nationwide phenomenon affecting cities and states everywhere.

And of course the US government is affected by those same phenomenon -- we think the government's revenue expectations remain wildly optimistic, given the slowdown and the collapsing of the income gap -- but alas the Fed still has the printing press and should be able to hold onto its AAA rating for awhile longer.

Meanwhile, New York actually managed to float a bond at a 5.55% interest rate and a 2036 maturity. Who'd have guessed?
http://www.businessinsider.com/moody...outlook-2009-4

Yes, what the federal government under Nobama can't wreck, his local minions will succeed in doing.

The politicians are full of it............they have no business telling the American people to tighten their belts and pay more and more nonsence taxes to fix the economy when our Gov't is trheatening us with Amnesty for 12-40 million third world invader thugs.