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Moody's Warns That Any Fluff Deficit Reduction Plan Will Likely Result In Downgrade

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Tue, 07/19/2011 - 14:26 | 1471205 slaughterer
slaughterer's picture

Moody's does not like it, bitchez!

Tue, 07/19/2011 - 14:42 | 1471297 eureka
eureka's picture

 - but US stocks love it...., bitchez?

Tue, 07/19/2011 - 14:47 | 1471318 Broken_Trades
Broken_Trades's picture

MOAR BULLISH NEWS!

Iran Just Invaded Kurdistan (AKA Northern Iraq).

http://hosted.ap.org/dynamic/stories/M/ML_IRAN_KURDS?SITE=RIPAW&SECTION=HOME&TEMPLATE=DEFAULT

 

 

 

Tue, 07/19/2011 - 15:12 | 1471422 jus_lite_reading
jus_lite_reading's picture

sorry double post

Tue, 07/19/2011 - 15:15 | 1471423 jus_lite_reading
jus_lite_reading's picture

sorry double post

Tue, 07/19/2011 - 15:12 | 1471424 jus_lite_reading
jus_lite_reading's picture

HOLY SHIT!! AND NOW THESE FUCKING MARKETS RALLY??? good!! 

RALLY!!! Because the more they rally the more my gold and silver will be worth when the big wet shit hits the giant fucking shit fan!!! 

Tue, 07/19/2011 - 14:50 | 1471351 TaxSlave
TaxSlave's picture

All your money is debt.

All your base are belong to us, you curs!

Tue, 07/19/2011 - 15:00 | 1471386 10kby2k
10kby2k's picture

the housing market makes sense to me
the commodities market makes sense to me

all of the rest of it i have absolutely no comprehension on wtf is going on

Tue, 07/19/2011 - 15:01 | 1471392 No Bid
No Bid's picture

Sell the news.

Tue, 07/19/2011 - 15:06 | 1471400 redpill
redpill's picture

Moody's has become a rather schizophrenic organization.  On one hand they release laughably pollyanna economic projections, and meanwhile their credit risk group waggles their fingers at governments over catastrophic sovereign debt levels.  So we're either on the cusp of economic boom, or we're totally fucked.  I guess that's one way to make sure you can look back and say you were right.

Tue, 07/19/2011 - 18:15 | 1472110 LookingWithAmazement
LookingWithAmazement's picture

"negative outlook" - who cares? Europe on the brink, China overheated and in for a major correction, US economy sluggish. Mark my words: there will be a *major run* into the US T-bonds as soon as the first auction is announced. People will be dying to park their money over there. And Bernanke plus Obama will be laughing to death.

Tue, 07/19/2011 - 14:27 | 1471207 Popo
Popo's picture

I sure wish these guys had miraculously decided to stop being pussies back in 2006.

Tue, 07/19/2011 - 14:30 | 1471229 101 years and c...
101 years and counting's picture

didnt DONK force the ratings agencies to be 'credible'? 

Tue, 07/19/2011 - 17:10 | 1471894 takinthehighway
takinthehighway's picture

Wish DONK would keep these folks in line...

http://www.youtube.com/watch?v=FrH-Bp3N4Yg

Tue, 07/19/2011 - 14:27 | 1471211 papaswamp
papaswamp's picture

In the next year or so...the politicians can live with that. Heck upwards of a 2 yr horizon....no big deal.

Tue, 07/19/2011 - 14:39 | 1471280 SheepDog-One
SheepDog-One's picture

All these financial headlines that say '12-18 months from now' actually mean 'within the next week'.

Tue, 07/19/2011 - 15:18 | 1471448 papaswamp
papaswamp's picture

I'd be impressed, but I don't think Moody's has the balls. I think it will just say bad US bad! and then go pick on Spain. 

Tue, 07/19/2011 - 14:51 | 1471359 nedwardkelly
nedwardkelly's picture

In the next year or so.

Right, that's one or more of:

1. A commitment to do something so far beyond the average idiots attention span that it's irrelevant

2. As meaningless as the classic pub sign that says "Free beer tomorrow"

3. If remotely close to a committed time frame, just beyond the next elections, but close enough after not to mess with the next round.

For the TLDR crowd:

4. BS.

 

Tue, 07/19/2011 - 14:30 | 1471220 ebworthen
ebworthen's picture

They just need to downgrade it already because the U.S.A. is junk because our leaders in Government and Business have sold us out and sooner or later there will be a mutiny on the U.S.S.A. slaver ship.

Tue, 07/19/2011 - 14:38 | 1471270 Peter_Griffin
Peter_Griffin's picture

Fuck yeah, throw us a fuckin bone moodys.  My temp is 213*, I'm ready for some real fuckin change.

Tue, 07/19/2011 - 15:14 | 1471433 Mactheknife
Mactheknife's picture

Ron Paul seems to be the only guy there who gets it...on Cut, Cap, & Balance:

First, it purports to eventually balance the budget without cutting military spending, Social Security, or Medicare.  This is impossible.  These three budget items already cost nearly $1 trillion apiece annually.  This means we can cut every other area of federal spending to zero and still have a $3 trillion budget.  Since annual federal tax revenues almost certainly will not exceed $2.5 trillion for several years, this Act cannot balance the budget under any plausible scenario.

Second, it further entrenches the ludicrous beltway concept of discretionary vs. nondiscretionary spending.  America faces a fiscal crisis, and we must seize the opportunity once and for all to slay Washington's sacred cows-- including defense contractors and entitlements.  All spending must be deemed discretionary and reexamined by Congress each year.  To allow otherwise is pure cowardice.

Third, the Act applies the nonsensical narrative about a "Global War on Terror" to justify exceptions to its spending caps.  Since this war is undeclared, has no definite enemies, no clear objectives, and no metric to determine victory, it is by definition endless.  Congress will never balance the budget until we reject the concept of endless wars.

Finally, and most egregiously, this Act ignores the real issue: total spending by government.  As Milton Friedman famously argued, what we really need is a constitutional amendment to limit taxes and spending, not simply to balance the budget.  What we need is a dramatically smaller federal government; if we achieve this a balanced budget will take care of itself.

Read more: http://www.businessinsider.com/ron-paul-slams-cut-cap-and-balance-2011-7#ixzz1Sa1npibu

Tue, 07/19/2011 - 15:33 | 1471514 EscapeKey
EscapeKey's picture

Ron Paul is a fucking hero.

By capping spending at a certain constant percentage of GDP, it allows for federal spending to continue to grow. Tying spending to GDP creates an incentive to manipulate the GDP figure, ... In the worst case, it would even reward further inflation of the money supply, as increases in nominal GDP through pure inflation would allow for larger federal budgets.

http://paul.house.gov/index.php?option=com_content&view=article&id=1894:...

Tue, 07/19/2011 - 15:55 | 1471603 Commander Cody
Commander Cody's picture

How about just hero?

Tue, 07/19/2011 - 16:59 | 1471843 Uncle Remus
Uncle Remus's picture

it purports to eventually balance the budget without cutting military spending, Social Security, or Medicare.  This is impossible.

 

Nut. Shell.


Tue, 07/19/2011 - 17:08 | 1471847 Uncle Remus
Uncle Remus's picture

dup

Tue, 07/19/2011 - 14:40 | 1471283 SheepDog-One
SheepDog-One's picture

Yea WTF do they mean 'within a year', its NOW! 

Tue, 07/19/2011 - 14:30 | 1471225 Smiley
Smiley's picture

Why do we care what Moody's says?  Didn't they rate subprime mortgage derivatives AAA+?

Tue, 07/19/2011 - 15:25 | 1471483 PaperBugsBurn
PaperBugsBurn's picture

Because "Moody's" are the banksters.

Tue, 07/19/2011 - 14:30 | 1471228 the not so migh...
the not so mighty maximiza's picture

Fluff me....no FLUFF YOU!

Tue, 07/19/2011 - 15:28 | 1471496 dracos_ghost
dracos_ghost's picture

At first glance, it looked like the headline said "... Any Fluffer reduction plan will likely result in downgrade".

Moody's: "Keep my fluffers in budget or I'll downgrade you".

Tue, 07/19/2011 - 14:30 | 1471230 TaxSlave
TaxSlave's picture

Repudiate!

It's not my debt.  And I'm not paying it!

Tue, 07/19/2011 - 14:41 | 1471293 MethodMan
MethodMan's picture

We don't have to, they print money and give it to debt holders. We pay for it, whether we like or not. The value of our money is the only thing that is going to get repudiated.

Tue, 07/19/2011 - 15:08 | 1471412 TaxSlave
TaxSlave's picture

Sigh .... I know.

But as they do that, ever less real wealth gets created for them to skim off ... and eventually all bondholders that can't print money will begin to worry about whether they'll get paid off.

Then the bond market goes poof.  And the currency with it.

There ... repudiated!

Then we'll get a New Money, backed by gold (in a basket with fries, maybe), except you can't have any of the gold and it gets issued as .... debt.  That you owe.  Forever.

Tue, 07/19/2011 - 15:34 | 1471519 chdwlch1
chdwlch1's picture

How can our "New Money" system survive when it's backed by nothing but "tradition"?

/sarc off/

 

Tue, 07/19/2011 - 16:09 | 1471644 Doyle Hargraves
Doyle Hargraves's picture

I like them french fried potaters-Karl Childers

Tue, 07/19/2011 - 14:31 | 1471235 TruthInSunshine
TruthInSunshine's picture

How dare Moody's.

They would have gone bust had it not been for the AIG bailout, as they were a big part of Warren 'Thank You Uncle Sugar' Buffet's Berkshire holdings (as were many other intended beneficiaries of taxpayer bailouts that Buffet held, with or without counterparty risk made moot by Uncle Sugar).

Tue, 07/19/2011 - 14:32 | 1471237 Doyle Hargraves
Doyle Hargraves's picture

Are these guys are even relevant anymore?! Hello AAA rated junk mortgages and CDOs?! The US should have been downgraded a decade ago... gold and silver never have to rely on ratings because they are real wealth bitchez!

Tue, 07/19/2011 - 14:32 | 1471238 HungrySeagull
HungrySeagull's picture

Warn warn warn warn.

Just put up or shut up Moody.

Tue, 07/19/2011 - 14:54 | 1471375 Quintus
Quintus's picture

Yup.  All talk and no trousers.  Let's see some genuine downgrading action.

Tue, 07/19/2011 - 15:11 | 1471421 francis_sawyer
francis_sawyer's picture

In similar news...

Oscar the Grouch warns the Sesame Street producers that if they don't start adding more minutes to his segments, then he's going to take his acting talents elsewhere...

 

Tue, 07/19/2011 - 14:33 | 1471242 carbonmutant
carbonmutant's picture

Somehow I don't think our "community organizer" is paying attention to Moodys et al.

Tue, 07/19/2011 - 14:33 | 1471244 problemfixr
problemfixr's picture

I wonder how long the masters of this world are going to continue to let groups like Moody's propagate this extreme truth?  Moody's needs to just move along...nothing going on here.

Tue, 07/19/2011 - 14:35 | 1471251 TruthInSunshine
TruthInSunshine's picture
There's the headline for the day. The poisonous pact is a fait accompli. Fade it.

Tue, 07/19/2011 - 14:44 | 1471303 SheepDog-One
SheepDog-One's picture

Well Mr McConnell, Chinas Dagong says US is already defaulted, so apprently they think its even more than an 'option' really a present reality.

Dagong Rating Agency: "The US Has Already Defaulted" | zero hedge

Tue, 07/19/2011 - 14:44 | 1471309 Dick Darlington
Dick Darlington's picture

Same mantra as in Europe. We are broke, we can't pay our debts, we run huge deficits in order to chase the failed infinite growth utopia and to support the massive rotten waste in private balance sheets BUT default is not an option. I seriously question the mental health of anybody outside the political/financial elite who still believes in the "system".

Tue, 07/19/2011 - 14:51 | 1471357 TruthInSunshine
TruthInSunshine's picture

There's the headline for the day. The poisonous pact is a fait accompli. Fade it.

  • 07-19 14:30: US Senator McConnell says default is not an option
  • And Reid slams the alley-oop for the financial torch job.

    "Pull it," says the government.

    Tue, 07/19/2011 - 14:35 | 1471252 Sudden Debt
    Sudden Debt's picture

    BY THE BALLS BITCHEZ!!! BY THE BALLS!!

     

     

    Tue, 07/19/2011 - 14:58 | 1471384 cosmictrainwreck
    cosmictrainwreck's picture

    CURB YOUR ENTHSIASM! and quit flailing around like that - ya look silly

    Tue, 07/19/2011 - 14:35 | 1471255 Sutton
    Sutton's picture

    Just like the Titanic could not be saved after it's sixth(?) compartment flooded, so the Old Republic can't be saved.

    Just a question of when we sink beneath the waves.

    Tue, 07/19/2011 - 15:13 | 1471256 Bay of Pigs
    Bay of Pigs's picture

    Fluff that soft patch for all its worth.

    Do NOT follow this link or you will be banned from the site!