Reply to Moody's Downgrades USA's rating, citing rising debt

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Reply to "Moody's Downgrades USA's rating, citing rising debt"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]So what’s the solution? [/quote]

1) Don't make big tax cuts to the rich.  Falling revenue and high levels of debt are unsustainable.
2) Don't gut the IRS's staff and budget and demoralize them so they can't do their job.  See above on falling revenue.
3) Don't let the inmates run the asylum.  The bond market is spooked by Trump's unpredictability and bad policy choices.[/quote] On board except 3), the bond market is spooked ? 10 yr yield is 4.45%, well below the recent peak of 5% under Biden: I get the narrative that rates are up, but just no not true.[/quote]

^^This post didn't age well.  The markets are spooked.

https://www.nytimes.com/2025/05/19/business/stock-markets-moodys-sp500.html
[quote]
Turbulent trading hit financial markets on Monday, with investors selling U.S. stocks and bonds and the dollar, an ugly combination that suggests sentiment is souring on the outlook for the world’s largest economy.

One factor jarring markets is a bill in Congress that would make President Trump’s signature 2017 tax cuts permanent and could add trillions of dollars to federal debt. A House committee voted to approve the bill on Sunday night, although it was expected to remain a focus of contentious congressional debate.

The United States’ loss of its last triple-A credit rating late on Friday and mounting concerns about government debt have threatened to disrupt the relative calm in markets that has prevailed since Mr. Trump paused many of his tariffs in recent weeks.
[/quote][/quote]

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