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[quote=Anonymous][quote=Anonymous]The markets and businesses react to reality. We cut spending, we reduce demand, markets cut growth forecast-stocks go down and businesses cut cost/employees. Washington think tanks turn out talking points that have no correlation to reality. 
Many people have made a lot of money betting against Moody's ...Japanese bonds and the mortgage crisis. Moody's is a joke, look at the us bond market over the past few weeks. Who do you think is telling the truth Moody's, Rush(I did not finish college) limbaugh, and the republican establishment or what is really happening in the markets?[/quote]

Unfortunately ratings count when it comes to interest rates.  And while Moody's etc. did a bad job with market prediction, this is different.  This is a rating of creditworthiness in a relatively known market environment.

I think that a Moody's downgrade, if it comes, will be due to the short duration and uncertain future of the debt deal.  First, it does not solve the problem into the intermediate future.  Second, it involves incremental debt increases that are subject to overrides, future triggers that could be subverted by the next congress, etc. Who knows whether even this limited deal will be honored next year and the year after?[/quote]

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