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

Tyler Durden's picture




 

Since we don't have minutely Europe headlines, instead we get US ones. And here is the first official reaction to the McConnell plan from a rating agency. Since this Plan B is far more concrete than the Gang of Whatever Plan, Moody's will have absolutely the same to say about the previously noted 5 page talking points memo.

From Reuters:

A U.S. government backup debt plan to raise the country's debt ceiling and avoid imminent default could still lead to a downgrade of U.S. ratings in the next year or so, Moody's said on Tuesday.

Senator Mitch McConnell's "Plan B," increasingly seen as a "Plan A" in Washington, would avoid any immediate downgrade of the coveted U.S. triple-A rating, Moody's analyst Steven Hess told Reuters in an interview.

"But the numbers that are being discussed in terms of any possible deficit reduction coming out of this plan don't seem to be very large," Hess said. "Therefore this plan might result in a negative outlook on the rating."

 

 

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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.

    Tue, 07/19/2011 - 14:37 | 1471261 dexter_morgan
    dexter_morgan's picture

    So gold -$15 and silver -$1 after the BIG annoucement by the prevaricator in chief. That's not good enough, what else lurks out there to drive PM's down even more before the HK exchange starts doing silver contracts?

    Tue, 07/19/2011 - 14:37 | 1471262 cougar_w
    cougar_w's picture

    They're getting serious now. Either we clean this debt mess up one of these days, or Moody's will wet themselves.

    soooOOOooooo not worried.

    Tue, 07/19/2011 - 14:38 | 1471273 malikai
    malikai's picture

    So, who'se going to be buying the bills?

    Tue, 07/19/2011 - 14:39 | 1471281 SovietCong
    SovietCong's picture

    Someone should talk sense into those our-model-does-not-accept-negative-values-for-this-variable Moody's guys. They've become far too assertive as of recent weeks and only cause trouble to the govt. recovery efforts. Enough of this chest-thumping and posturing. This is simply an unpatriotic malice and must be stopped.

    Tue, 07/19/2011 - 14:40 | 1471287 dexter_morgan
    dexter_morgan's picture

    LOL.......you are kidding I hope

    Tue, 07/19/2011 - 14:51 | 1471341 SovietCong
    SovietCong's picture

    I do.

    Tue, 07/19/2011 - 14:50 | 1471345 SovietCong
    SovietCong's picture

    I do. However, I have an uneasy feeling that similar thoughts may soon nestle in certain pretty dangerous minds... After all, the ability to develop a sudden new depth of understanding of just how complex and politically entangled the rating job may be is not limited to his holiness JCT and Greece.

    Tue, 07/19/2011 - 14:40 | 1471284 JW n FL
    JW n FL's picture
    'Execution List' Author Pleads Guilty

    Jul 19 2011 | 1:55pm ET

    Vincent McCrudden, the former hedge fund manager accused of threatening the lives of 47 people with ties to financial regulators, pleaded guilty before the start of his trial yesterday.

    McCrudden, who was arrested in January after returning from Singapore, pleaded guilty to two counts of transmission of threats to injure. The former commodities trader, who accused regulators, notably the Commodity Futures Trading Commission and National Futures Association, of pursuing a vendetta against him, had never denied posting an "execution list" naming 47 regulators, including the heads of the CFTC and Securities and Exchange Commission, but had previously claimed that the threats were not serious. But he had denied sending an e-mail promising to kill the NFA's Daniel Driscoll, a denial he retracted yesterday.

    http://www.finalternatives.com/node/17449

     

    ***** "McCrudden's legal troubles began in 2000 when he was criminally charged with defrauding his hedge fund investors. But despite his acquittal in 2003, the NFA refused to allow him to register." *****

     

    Score one for the FED's!!

    Another Dangerous, Terrorist, Al Qaeda Operative that took away from the CFTC / SEC / FBI time of Watching Porn will be un-able to distract them from watching porn for years to come!

    Porn must be watched at all times by the FED's and people like this need to be removed from the population and sent to an attitude adjustment center! were he can rub shoulders with real murders for years.. thusly after being released and having no way to earn an income and being completely removed from productive society and having nothing to lose.. he will then behave himself much better!

     

    and we all wonder why the World is upside down?

     

    Tue, 07/19/2011 - 14:40 | 1471285 carbonmutant
    carbonmutant's picture

    We're up over 190 on the DJI. Apparently the money is more important than the credit rating.

    It clearly sets the standard for the average consumer....

    Tue, 07/19/2011 - 14:42 | 1471298 dexter_morgan
    dexter_morgan's picture

    imminent default = Keynesian BULLISH

    love it

    Tue, 07/19/2011 - 14:47 | 1471324 eureka
    eureka's picture

    Fiat rules usa - because usa IS fiat.

    I am Eureka.

    Tue, 07/19/2011 - 15:43 | 1471571 DavidC
    DavidC's picture

    Take a look at the NASDAQ!

    DavidC

    Tue, 07/19/2011 - 15:54 | 1471600 DavidC
    DavidC's picture

    .

    Single key click, double post.

    DavidC

    Tue, 07/19/2011 - 16:33 | 1471734 Almost Solvent
    Almost Solvent's picture

    That's what she said

    Tue, 07/19/2011 - 14:40 | 1471286 buzzsaw99
    buzzsaw99's picture

    from wiki: Mr. McDaniel has also been the subject of significant scrutiny for the timing of his stock sales. "If you look at his major sales in 2007, 2009, 2010, they are all around price peaks and followed by large declines. The likelihood that this is just 'lucky' is very low — it appears he is using inside information to time his trades,said Jesse Fried, a Harvard University law professor who studies stock trading by CEOs...

    Tue, 07/19/2011 - 17:13 | 1471914 Uncle Remus
    Uncle Remus's picture

    Of course, we're talking SOP now...

    Tue, 07/19/2011 - 14:41 | 1471290 SheepDog-One
    SheepDog-One's picture

    Well all theyve got is fluff, so downgrades are coming. In the meantime imminent default is apparently great for bubble equities.

    Tue, 07/19/2011 - 15:06 | 1471394 firefighter302
    firefighter302's picture

    Exactly Sheepdog, it's ALL fluff.

    More can-kicking numbers games.

    And I don't think it has a chance in the House with $1,000,000,000,000 (1 trillion) in tax increases.

    Tue, 07/19/2011 - 15:03 | 1471403 small watcher
    small watcher's picture

    What were the economic plans like when you were young?

    They went on for ever...

    ...and the politicans always had little fluffy plans...

    ...purple and red and yellow and on fire and the precious metals would catch the colors everywhere...

    ...The most beautiful skies as a matter of fact...

    Tue, 07/19/2011 - 14:41 | 1471292 gwar5
    gwar5's picture

    Who TF woke Moody's up?

    Where the hell were they and their warnings when the US administration of Fellow Travelers were running up $1.5 Trillion in yearly deficits, ignored proposing any budget for over two years (contrary to law), and flushed a trillion dollars down the toilet in pork and fake shovel-ready stimulus jobs?

    Late is not better than never. Damage done.

    Tue, 07/19/2011 - 14:43 | 1471304 Bang Dae Ho
    Bang Dae Ho's picture

    if rating agencies fail (because nobody listens anymore), they will be bailed out.

    Tue, 07/19/2011 - 14:44 | 1471314 dexter_morgan
    dexter_morgan's picture

    ratings agencies = domestic terrorists

    Tue, 07/19/2011 - 14:49 | 1471338 buzzsaw99
    buzzsaw99's picture

    fitch made some recommendations to us recently and we told them to stick up their brown chutes bitchez.

    Tue, 07/19/2011 - 14:43 | 1471305 kito
    kito's picture

    next up, ratings agencies speech to be prohibited, as it will fall under the "dangerous speech" category----u.s. vs wilcox: the test for dangerous speech unprotected by the First Amendment is whether the words are used in such circumstances and are of such a nature as to create a clear and present danger that they will bring about the substantive evils that Congress has a right to prevent. hmmmm, sure sounds like moodys may have to be careful with their talk of downgrades.

    Tue, 07/19/2011 - 14:45 | 1471320 SheepDog-One
    SheepDog-One's picture

    Congress cant put a muzzle on Dagong though-

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

    Tue, 07/19/2011 - 14:52 | 1471362 Bang Dae Ho
    Bang Dae Ho's picture

    The US Has Already Defaulted

    exactly, it is like when you stand in front of xyz's grave and say: there is a certain probability xyz could die some day.

    Tue, 07/19/2011 - 15:38 | 1471543 Cathartes Aura
    Cathartes Aura's picture

    A proposed ordinance would even extend to residents’ own homes and is so broad in its reach that it covers boy scout groups and book clubs. Even dinner table conversations about the local community would technically be outlawed.

    encroaching stealth legislation - heads up!

    thanks sabra1

    Tue, 07/19/2011 - 17:26 | 1471970 Uncle Remus
    Uncle Remus's picture

    Long JNJ

    Tue, 07/19/2011 - 14:48 | 1471332 rockraider3
    rockraider3's picture

    Okay, who will put forth the legislation to nationalize Moody's and the other rating agencies who do dare speak out against the miliatry industrial complex? 

    Tue, 07/19/2011 - 14:51 | 1471342 Problem Is
    Problem Is's picture

    Moody's Warns That Any Fluff Deficit Reduction Plan...

    Moody's Nihilist 1: "No funny stuff."
    Moody's Nihilist 2: "Ve vant ze money."
    Moody's Nihilist 1: "Or ve cut off yur Johnson!"
    Moody's Nihilist 2: "Ja, and stomp on it and squoosh it..."

    Tue, 07/19/2011 - 15:00 | 1471389 cosmictrainwreck
    cosmictrainwreck's picture

    now that is some funny shit LOL

    Tue, 07/19/2011 - 14:51 | 1471352 Infinite QE
    Infinite QE's picture

    Hopey is King Fluff. And don't me started on the Mrs Hopey.

    Tue, 07/19/2011 - 15:19 | 1471451 Problem Is
    Problem Is's picture

    You mean "Bullshit" Barry and...

    Michelle "I'll Kick Your Ass, Barry" Robinson-Soetoro??

    Tue, 07/19/2011 - 14:51 | 1471360 TradingJoe
    TradingJoe's picture

    Just backed up my truck on PMs :))) MOMOs WILL DIE!

    Tue, 07/19/2011 - 14:52 | 1471364 vegas
    vegas's picture

    Same old shit - different day.

    Why anybody listens to these clowns amazes me.

    Long live the Ponzi!!

    Tue, 07/19/2011 - 15:02 | 1471398 BaBaBouy
    BaBaBouy's picture

    GOLD, only fools or Daytraders sell right now.

     

    $2.5 Trill fiat printing/debt, and QE3 on the way.

     

    Ride-em cowboys...

     

    Tue, 07/19/2011 - 15:08 | 1471411 Saxxon
    Saxxon's picture

    Agreed BaBa; If one is not in a hurry, in need of the cash or not tethered to margin, this is just another sharp correction in a ten-year bull.

    I am flat in my trading account but wondering how much lower Au will go.  I am thinking the official ceiling lift announcement might slam the price even lower.  Not saying that makes sense, mind you.

    Tue, 07/19/2011 - 15:28 | 1471450 BaBaBouy
    BaBaBouy's picture

    Personally I think the debt issue should not impact GOLD either way.

    Raising USD borrowing limit is actually great for GOLD and commods.

    Lots of paper fiats, USD debasement, Inflation...

     

     

    The GOLD move down on this theme is emotions/manip/st profit taking...

     

    The smart money is flowing in and will be for many years.

    Tue, 07/19/2011 - 15:33 | 1471513 papaswamp
    papaswamp's picture

    I'm hoping it will drop to a worthy buying level before it turns back around and makes the long run up to $1750ish.

    Tue, 07/19/2011 - 15:02 | 1471399 Everybodys All ...
    Everybodys All American's picture

    The tea party republican plan was too draconian according to Obama, and the gang of six plan is just right. Yet the republican plan was calling for half as much in overall cuts. Hmm, call me a little confused.

    Tue, 07/19/2011 - 15:03 | 1471401 GOSPLAN HERO
    GOSPLAN HERO's picture

    Proverbs 22:7  The rich ruleth over the poor, and the borrower is servant to the lender.

    Tue, 07/19/2011 - 15:17 | 1471428 plocequ1
    plocequ1's picture

    Very  poetic.  But i prefer, " Cast your bread upon the waters and it comes back dough"

    Tue, 07/19/2011 - 15:06 | 1471405 RobotTrader
    RobotTrader's picture

    30-yr. bond going nuts.

    10 b.p. move in just hours

    Tue, 07/19/2011 - 15:12 | 1471427 Bay of Pigs
    Bay of Pigs's picture

    Fuck that Robot. Look at Harley Davidson today! You had a large position, right?

    Tue, 07/19/2011 - 15:10 | 1471414 virgilcaine
    virgilcaine's picture

    What I believe is happening is if and when the Euro collapses Money will flow into Treasuries by the Trillions.  Whether this is right is immaterial to how the herd will react.

    Tue, 07/19/2011 - 15:09 | 1471417 Saxxon
    Saxxon's picture

    Robot = correctly positioned again.

    Who came in short today?  Still shorting after all these years?

    Tue, 07/19/2011 - 15:20 | 1471464 lieutenantjohnchard
    lieutenantjohnchard's picture

    he doesn't trade. he posts on the internet. he owns mo, hd and vz if he is to believed. but then again he says he works for a bank. so choose the lie you wanna run with. they're all equal plausible.

    Tue, 07/19/2011 - 15:13 | 1471431 j0nx
    j0nx's picture

    Moody's is just trying to remain relevant. Kinda like Pelosi still thinking she has any real power in CONgress.

    Tue, 07/19/2011 - 15:19 | 1471454 Cheesy Bastard
    Cheesy Bastard's picture

    Our esteemed representatives will clearly recognize a fluff deficit reduction plan, since they are mostly a bunch of fluffers themselves.

    Tue, 07/19/2011 - 15:19 | 1471455 monopoly
    monopoly's picture

    This is what broken markets do. Insane.

    Tue, 07/19/2011 - 15:37 | 1471534 BaBaBouy
    BaBaBouy's picture

    Test

    Tue, 07/19/2011 - 15:37 | 1471538 equity_momo
    equity_momo's picture

    All the pieces are slowly being moved into position. Plenty of "excuses" now for when the US economy craters and the Govn are "forced" to act to "save" main street.

    Prepare mo fakas.

    Then butter the popcorn , sit back and watch.

    Tue, 07/19/2011 - 15:40 | 1471555 Nothing To See Here
    Nothing To See Here's picture

    Moody's : "Reduce your deficit within the next 100 years or else"

    POTUS : "Or else what?"

    Moody's : "Or else we'll be very, very angry with you. And we'll write you a letter, telling you how angry we are."

    Tue, 07/19/2011 - 15:42 | 1471563 Nothing To See Here
    Nothing To See Here's picture

    Moody's : "Reduce your deficit within the next 100 years or else"

    POTUS : "Or else what?"

    Moody's : "Or else we'll be very, very angry with you. And we'll write you a letter, telling you how angry we are."

    Tue, 07/19/2011 - 15:43 | 1471572 Catch22
    Catch22's picture

    How long before the waivers requiring certain institutions invest in only aaa rated debt start flying?

    Tue, 07/19/2011 - 15:48 | 1471588 Nothing To See Here
    Nothing To See Here's picture

    Moody's : "Reduce your deficit within the next 100 years or else"

    POTUS : "Or else what?"

    Moody's : "Or else we'll be very, very angry with you. And we'll write you a letter, telling you how angry we are."

    Wed, 07/20/2011 - 01:17 | 1472939 HungrySeagull
    HungrySeagull's picture

    Moody's : "Reduce your deficit within the next 100 years or else"

    POTUS : "Or else what?"

    Moody's : "Or else we'll reveal the ludicrous rating that no one has ever seen before in this world!"

    Tue, 07/19/2011 - 16:01 | 1471615 topshelfstuff
    topshelfstuff's picture

    the US should issue each American $One Million Dollars. And to make the Banks happy [happier] automatically deduct any outstanding mortgage, auto loan, and credit card debt. This should jump start the economy, allow for any new mortgage to be filed correctly. The Printing Presses are running non-stop anyhow, so might as well give this a try.

    This is strictly an Internal measure. A lot can be done when its only National

    [ its only about 300 million million. Haven't we misplaced this amount a few times. You know I was joking around...but............

    Wed, 07/20/2011 - 01:19 | 1472941 HungrySeagull
    HungrySeagull's picture

    But.. but... that money has already been blown.

     

    A million bucks to us all? KEWL! 666 ounces more or less or 55 pounds of gold please. And make that delivery FAST.

    Tue, 07/19/2011 - 16:10 | 1471646 PulauHantu29
    PulauHantu29's picture

    I heard on the radio this plan from "the gang" does very little to solve the massive waste and unnecessary gubberment expansion. I am waiting for more thoughtful critiques on ZH and other financial Blogs.

    I expect gold, siulver, oil, etc will keep rising as protection against the falling of all currencies (excpet maybe the Swiss franc and Canadian dollar).

    Tue, 07/19/2011 - 16:16 | 1471676 kito
    kito's picture

    warren buffett on how to limit debt:

    “The way to limit debt is by taking in revenues that are appropriate in relation to your expenditures,” 

    anyone else see a problem with his logic?

    Wed, 07/20/2011 - 02:23 | 1472985 AldousHuxley
    AldousHuxley's picture

    that's one way

    another way is to cut expenditures to decrease debt.

     

    US needs to do both

     

    but thanks to wall st. fake economy, bubble burst and politicians don't want to do either.

     

    Tue, 07/19/2011 - 17:35 | 1472009 LookingWithAmazement
    LookingWithAmazement's picture

    Believe me: as soon as the first auction of fresh US debt is announced, people will run into it. No hyperinflation, no gold and silver through the roof, no QE3 needed. People will rush to buy T-bonds, Americans at least as hard as others, although they are against a higher debt ceiling. No matter the interest is just 2% or even negative. All the fuzz about a default and the rest is useless.

    Wed, 07/20/2011 - 02:19 | 1472983 AldousHuxley
    AldousHuxley's picture

    fresh US debt is QE. nobody is buying that except our own Fed through banks.

    Bernanke already gave QE 2 with a warning to politicians, but as usual pols just kicked the can down the road.

    Tue, 07/19/2011 - 19:22 | 1472286 Bolweevil
    Bolweevil's picture

    Moodys=Global Jihad

    Tue, 07/19/2011 - 22:35 | 1472734 Cameli
    Cameli's picture

    Note to all "ratings" agencies....why don't you feck off, nobody is listening tp you anymore.

    Wed, 07/20/2011 - 01:20 | 1472943 HungrySeagull
    HungrySeagull's picture

    That is "FUCK OFF" not feck. You are running with da big boys now.

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