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Moody's Sells Out As Usual: Leaves US At AAA, Puts Outlook On Negative Not To Appear Overly Corrupt Or Incompetent

Tyler Durden's picture


As that uber-sycophant, Mark Zandi (who has yet to be right about one thing in his entire career), put it so well a few days ago, when discussing the deal that will bring the US to 110% debt/GDP within a year "I'm not in the rating agency... but listening to what they have to say, I think this would be sufficient... but this is substantive and should avoid a big downgrade." Sure enough, the former Moody's top "economist" certainly knows his own, and as of several minutes ago Moody's has confirmed it will not touch America's AAA rating. However, it will put the rating outlook on negative. That should shut them up. Full report of how to sell out like the best of them is attached. And the kicker: "Moody's has also confirmed the Aaa ratings of certain US government-guaranteed bonds issued by the governments of Israel and Egypt, which had been on review for possible downgrade as a result of the review of the US government's bond rating." Well at least America's direct protectorate states (as opposed to its indirect ones) can sleep well.

From Moody's

Moody's Investors Service has confirmed the Aaa government bond rating of the United States following the raising of the statutory debt limit on August 2. The rating outlook is now negative.

Moody's placed the rating on review for possible downgrade on July 13 due to the small but rising probability of a default on the government's debt obligations because of a failure to increase the debt limit. The initial increase of the debt limit by $900 billion and the commitment to raise it by a further $1.2-1.5 trillion by yearend have virtually eliminated the risk of such a default, prompting the confirmation of the rating at Aaa.

In confirming the Aaa rating, Moody's also recognized that today's agreement is a first step toward achieving the long-term fiscal consolidation needed to maintain the US government debt metrics within Aaa parameters over the long run. The legislation calls for $917 billion in specific spending cuts over the next decade and established a congressional committee charged with making recommendations for achieving a further $1.5 trillion in deficit reduction over the same time period. In the absence of the committee reaching an agreement, automatic spending cuts of $1.2 trillion would become effective.

In assigning a negative outlook to the rating, Moody's indicated, however, that there would be a risk of downgrade if (1) there is a weakening in fiscal discipline in the coming year; (2) further fiscal consolidation measures are not adopted in 2013; (3) the economic outlook deteriorates significantly; or (4) there is an appreciable rise in the US government's funding costs over and above what is currently expected.

First, while the combination of the congressional committee process and automatic triggers provides a mechanism to induce fiscal discipline, this framework is untested. Attempts at fiscal rules in the past have not always stood the test of time. Therefore, should the new mechanism put in place by the Budget Control Act prove ineffective, this could affect the rating negatively. Moody's baseline scenario assumes that fiscal discipline is maintained in 2012, despite pressures for fiscal relaxation that often precede general elections and the difficult negotiations that are likely to arise due to the scheduled expiration of the so-called "Bush tax cuts" at the end of that year.

Second, further measures will likely be required to ensure that the long-run fiscal trajectory remains compatible with a Aaa rating. Specifically, Moody's expects to see a stabilization of the federal government's debt-to-GDP ratio not too far above its projected 2012 level of 73% by the middle of the decade, followed by a decline. Such a pattern would also support a smaller interest burden as a percentage of government revenues than is now projected. Wide political differences that have characterized the recent debt and fiscal debate, if they continue, could prevent effective policymaking around that time. Measures that further reduce long-term deficits would be positive for the rating; a lack of such measures would be negative.

Third, recent downward revisions of economic growth rates and the very low growth rate recorded in the first half of 2011 call into question the strength of potential growth in the coming year or two. Continued very low growth would make fiscal consolidation more difficult. As a result, Moody's will also be monitoring the pace of growth as it relates to the fiscal effort.

Finally, the US Treasury's cost of borrowing has remained low despite the recent political uncertainties surrounding the debt limit and the long-term fiscal outlook. While Moody's and economic forecasters generally expect interest rates to rise over the next few years, a rise in borrowing costs above and beyond what is now expected would threaten efforts at fiscal consolidation. Such a development would also be negative for the rating should it occur.

Moody's has also confirmed the Aaa ratings of certain US government-guaranteed bonds issued by the governments of Israel and Egypt, which had been on review for possible downgrade as a result of the review of the US government's bond rating.

The implications of this rating action for directly and indirectly related ratings will be reported presently through a separate press release.


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Tue, 08/02/2011 - 18:03 | 1518601 swissinv
swissinv's picture

well no suprise with Moody's - now I wonder if S&P has the balls to!

Tue, 08/02/2011 - 18:35 | 1518724 CH1
CH1's picture

S&P will cave too. Anyone who wants respect from the masses always caves to the state.

Tue, 08/02/2011 - 23:44 | 1519486 trav7777
trav7777's picture

are you tards paying attention to the TLT?  I mean, shit bonds been goin up up you can call these types of yields OTHER than AAA is beyond me.

The ridiculous yields of USTs warrant a AAAA rating, IMO.  And, yes, I am fully aware that we are fuckin bankrupt.  The market will set the paper price, fuck the raters.

Tue, 08/02/2011 - 19:16 | 1518861 dwdollar
dwdollar's picture

Come on now.  America won't be AAA forever.  The rating agencies will give you fair warning of AA status a full 2-4 hours before financial armageddon and complete collapse into a Mad Max scenario.  Just don't make the mistake of being asleep more than 4 hours at a time.

Tue, 08/02/2011 - 19:51 | 1518988 Raymond Reason
Raymond Reason's picture

Just don't make the mistake of being asleep more than 4 hours at a time.

Good strategy.  I think i'll see if i can get on Moody's email notification list. 




Tue, 08/02/2011 - 20:39 | 1519109 Tanz der Lemminge
Tanz der Lemminge's picture

Doesn't Moodys still have Confederate war bonds rated Aaa?

Wed, 08/03/2011 - 02:29 | 1519668 Al Gorerhythm
Al Gorerhythm's picture

Are they including tranches of BBB and CCC sub-prime treasuries into the mix and rating them AAA regardless ...... AGAIN? 

Tue, 08/02/2011 - 18:03 | 1518603 knukles
knukles's picture

Charades:  Smells like....

Tue, 08/02/2011 - 18:03 | 1518604 MsCreant
MsCreant's picture

And Gold still climbs...

Tue, 08/02/2011 - 18:56 | 1518774 TSA Thug
TSA Thug's picture

Well yea it does. You should have heard Rush and Hannity today. They were on fire! Repubs(with means) who object to the passage of the bill are going to put pressure on the markets. Hannity had a guest on today telling listeners to buy used cars!

Holy Smoke MsCreant. Fireworks before my very eyes! They are going to force the second down leg using various media and subversive messages.


Tue, 08/02/2011 - 23:45 | 1519487 trav7777
trav7777's picture

used cars are harder to find due to Cash for Clunkers, where they junked a lot of the potential used car supply.

Another dipshit program from Obama

Wed, 08/03/2011 - 02:36 | 1519674 StychoKiller
StychoKiller's picture

Hmm, I wonder if could get a collector to part with a Deusenberg (Speling?) for some AU...

Tue, 08/02/2011 - 18:03 | 1518605 Ratscam
Ratscam's picture

the debt is transitory

Tue, 08/02/2011 - 18:09 | 1518627 knukles
knukles's picture

The Empire is transitory.

Tue, 08/02/2011 - 18:05 | 1518612 swissaustrian
swissaustrian's picture

Moody´s stock is still up arround 20 % this year...

Tue, 08/02/2011 - 18:05 | 1518613 unky
unky's picture

The economic outlook already deteriorated... The S+P 500 dropped below 1250

Tue, 08/02/2011 - 20:21 | 1519063 TwelfthVulture
TwelfthVulture's picture

Now that they got the debt ceiling raised they can concentrate on getting QE3 started.  Can't do that with indices at multi year highs.

Tue, 08/02/2011 - 18:07 | 1518615 smlbizman
smlbizman's picture

the 3 mos. libor keeps going and going and going......won't be long

Tue, 08/02/2011 - 18:07 | 1518618 Rodent Freikorps
Rodent Freikorps's picture

So the ECB was right when they called the rating agencies corrupt, criminal, lying dens of cheap prostitutes?


Tue, 08/02/2011 - 18:10 | 1518630 Yen Cross
Yen Cross's picture

  And that was " Candy coated".   +1

Tue, 08/02/2011 - 18:42 | 1518756 Rodent Freikorps
Rodent Freikorps's picture

I'm trying out my kinder, gentler, imperial executioner persona.

Tue, 08/02/2011 - 18:17 | 1518658 knukles
knukles's picture

Dens of cheap prostitutes?
Warren Buffet still owns one of them brothels! 

Tue, 08/02/2011 - 18:33 | 1518715 Pay Day Today
Pay Day Today's picture

These ratings agency prostitutes are NOT cheap.

Tue, 08/02/2011 - 18:37 | 1518732 CH1
CH1's picture

Insert "takes one to know one" here, but yeah, theyt were right.

Tue, 08/02/2011 - 18:10 | 1518629 huckman
huckman's picture

Hey Moody's- What's our consolidated sum total "liquid asset"? 

Tue, 08/02/2011 - 18:10 | 1518632 Temporalist
Temporalist's picture

And the CNBS teams are saying "We've been long on silver for a long time" and Cramer just said gold has a long way to run as only 1.5% of people hold gold.  Cramer said gold about 1660 times.

Tue, 08/02/2011 - 18:14 | 1518643 Yen Cross
Yen Cross's picture

  Cramer is TURD BURGLER on a wafffle iron...   





                                                                   Watch him silzzle in SOROSVILLE!!!

Tue, 08/02/2011 - 18:14 | 1518645 Rodent Freikorps
Rodent Freikorps's picture

So, gold is about to be pimp slapped all the way to the sub-basement?

Tue, 08/02/2011 - 18:18 | 1518656 Yen Cross
Yen Cross's picture

 Leading indicators...  SPX, RBA, DXY.... Stay sharp!

Tue, 08/02/2011 - 18:14 | 1518649 drchris
drchris's picture

Zandi was probably the biggest winner in the dept ceiling debacle.  AAA can't be cheap.

Tue, 08/02/2011 - 18:15 | 1518651 hambone
hambone's picture

Don't walk - RUN to buy more gold and silver...the farce is becoming too blatant for even the most self absorbed American to notice (ok, that's not true, as they are on their i-pad, pod, w/ $800 Skullcandy earphones)...but maybe their parents will start catching on (ok, that's not true either) way Americans will notice a fucking thing till long after the smell of smoke has passed and finally flames are leaping around them...then, maybe then, they'll get it.

Tue, 08/02/2011 - 19:48 | 1518977 KingdomKum
KingdomKum's picture

+ 1,000 

Tue, 08/02/2011 - 18:18 | 1518661 Sudden Debt
Sudden Debt's picture

I wonder how they'll rate the US when rates are at 15% on the 10yr.


Tue, 08/02/2011 - 18:25 | 1518685 knukles
knukles's picture

Rate the US?  Nobody's gonna be left alive when rates go to 15%.  Hell, the whole fucking world's current debt burdens are barely servicable at current rate levels.... re: Greece, et. al....
And all the solutions worldwide to too much debt are to take on more debt?
This don't work in the end.

Tue, 08/02/2011 - 18:45 | 1518766 Yen Cross
Yen Cross's picture

S/D Watch the  cyn/usd revalue...  The truth is right in front of us...!

Tue, 08/02/2011 - 19:04 | 1518825 fishface
fishface's picture

well, the Egyptian 3yr is almost there, same rating and guaranteed by by the same Mob.


Tue, 08/02/2011 - 18:21 | 1518672 bigdad06
bigdad06's picture

Moody's is not going to downgrade the debt rating unless they get the go ahead from JP Morgan and GS, who will be short treasuries of course. Check out the new video here .

Tue, 08/02/2011 - 18:49 | 1518759 knukles
knukles's picture

OK.  I’m gonna tell you somethin’.  Good Old Boy Warren Buffet’s Moody’s Invented Rating Services tries so much as to seriously fuck with the AAA of the Good Old United States of America anymore, gonna be some conversation like this from Pulp Fiction, with Timmah a-jumpin’ ‘round in the Gimp Suit screamin’ that Warren’s effective tax rate is not fucking gonna so much as see that of his secretary's on it’s way to 117%, retroactive to pre-1492, but his ass is gonna be way long time in front of so fucking many congressional committees he ain’t never ever gonna see Omaha Fucking Steak City Nebraska AAAgain in his life time.



Butch: You okay?
Marsellus: Naw man. I'm pretty fuckin' far from okay.
Butch: What now?
Marsellus: What now? Let me tell you what now. I'ma call a coupla hard, pipe-hittin' niggers, who'll go to work on the homes here with a pair of pliers and a blow torch. You hear me talkin', hillbilly boy? I ain't through with you by a damn sight. I'ma get medieval on your ass.
Butch: I meant what now between me and you?
Marsellus: Oh, that what now. I tell you what now between me and you. There is no me and you. Not no more.


Tue, 08/02/2011 - 18:22 | 1518675 doomandbloom
doomandbloom's picture

haha....all is return to your posts peasants! breaks over.

Tue, 08/02/2011 - 18:24 | 1518682 caerus
caerus's picture

we're triple a see...and we'll remain triple a understand..see...

Tue, 08/02/2011 - 18:30 | 1518705 andybev01
andybev01's picture

Nyaah, see?

Tue, 08/02/2011 - 18:33 | 1518719 caerus
caerus's picture


Tue, 08/02/2011 - 18:46 | 1518767 Rodent Freikorps
Rodent Freikorps's picture

Edward G. Robinson always creeped me out.

Tue, 08/02/2011 - 18:24 | 1518684 Madcow
Madcow's picture

When is a crisis reached? When questions arise that can't be answered. 
- Ryszard Kapuscinski 

Tue, 08/02/2011 - 18:25 | 1518687 CompassionateFascist
CompassionateFascist's picture

Did not know that US "guarantees" Israeli debt paper. Not surprised, tho. As usual, tail wagging dog.

Tue, 08/02/2011 - 18:32 | 1518711 andybev01
andybev01's picture

I was wonderin' where all the joo haters were hiding.

Tue, 08/02/2011 - 19:18 | 1518880 Rodent Freikorps
Rodent Freikorps's picture

They are busy getting in shape for the annual fall Intafada season.

Gotta burn off that glossy look from living off western welfare for most of the year.

Tue, 08/02/2011 - 19:11 | 1518850 Homey Da Clown
Homey Da Clown's picture

Is it difficult to type with that hood on?

Tue, 08/02/2011 - 18:26 | 1518689 caerus
caerus's picture

fuck this looks like a the gaps on Au and Ag...

Tue, 08/02/2011 - 18:38 | 1518740 Cult of Criminality
Cult of Criminality's picture

I like trading gaps especially when they gap down in an uptrend because it will close the gap and usually keep climbing overshoot  then sometimes you get a short short in AU or AG even better.

Tue, 08/02/2011 - 18:26 | 1518690 Cassandra Syndrome
Cassandra Syndrome's picture

Moody's Standard is Poor, Fitchez....

Tue, 08/02/2011 - 18:49 | 1518777 Yen Cross
Yen Cross's picture

Goldie Locks courts/   The FED...

Tue, 08/02/2011 - 18:28 | 1518694 Hulk
Hulk's picture

For a refresher course on control fraud and gresham's dynamic, I present the ZH community with the one, the only, the honorable (last one too), Dr William Black

A must watch for understanding the basis of our present predicament

Tue, 08/02/2011 - 19:00 | 1518804 scatterbrains
scatterbrains's picture

says bandwidth exceeded... yo quit bogart'n that joint, let me git summa that  Billy Black

Tue, 08/02/2011 - 19:16 | 1518873 Hulk
Hulk's picture

Thats actually a good sign! Try this link

Tue, 08/02/2011 - 18:29 | 1518701 bugs_
bugs_'s picture

Deep Shah

Tue, 08/02/2011 - 18:30 | 1518706 John McCloy
John McCloy's picture

Why do we all act so surprised at the outcomes. If you have removed yourself from the Matrix and are aware of who retains control of this nation you can predict the following without even losing night of sleep:

1) Moody's will never remove AAA

2) 0% rates will be here for another 2-3 years

3) Mark to Market has will forever be abolished

4) The debt ceiling will always continue higher

5) Ron Paul will be left out of all MSM discussions over viability

6) The Four Horseman of Pres. O, Romney, Palin & Perry will be the tea of the day

7) All capital requirements/reserves for the financial industry will be delayed following debate and discussion

8) No structural changes to HFT trading will be occuring

9) All wrong doings on the part of the TBTF will be delayed and eventually diminished to minor fines hoping that the populace has forgotten their culpability.

10) QE3 although appearing to be impossible in current climate of WTI and Metals will continue since nobody else can purchase our debt.

11) There will always be a muslim boogeyman

12) The MSM will always trumpet the status quo and the same policies they bashed Bush on will be given a pass if Pres O continues them. 

13) The revolving door from regulators to private sector will be wide open from the SEC to Congress

14) The debt ceiling will never fail to be raised

15) Constitutionalists will be branded as "Extremes and terrorists" in the Mainstream Media

16) The Treasury Secretary will always be a former TBTF or pro Keynes policy minded individual

17) The White House will always tell us the recovery is around the corner and to end spending now will undo "All of the progress" and cast blame at those who wish for growth to be grown at home on the local level and not in the hands of big goverment

18) The wars will continue with words and troops rearranged to give the illusion of withdrawal

   It will not end until we close our eyes to the propaganda and continue to vote in Americans. We almost stopped it this past month with the Tea Party now being branded as "Al Queda" by our own Vice President and having to trot out not only McCain calling them names of smear but Gabby Gifford to promote the illusion of the status quo "Bi-partisanship"...Vote more of them out in 2012 and we will see results.

   For the first time the charade almost died when the Republicans could not pass their BS bill to be voted down by Dems because Americans were in office preventing the transfer of wealth. After wrangling the bill was passed so the dems could pretend to vote it down to pass their own bill to be later voted down by Repubs to appeal to both bases in this fiction Republic to create a "Grand Compromise" that is essentially a cohesion of the two bills. 

   We have these treasonists on the run. We need to be able to distinguish between Constitutionalists and Tea-O-Cons who will be in heavy force in 2012 because they both see the danger actual Americans coming to office poses. If we instill constitutionalists we can take our nation back from the thieves.Never let them defeat your morale..they have the cash and the media but they do not possess the same passion honest Americans who care about their children's future that we possess. Freedom is the newest of all ideas..tyranny is a millenia old practice.

Tue, 08/02/2011 - 18:31 | 1518710 caerus
caerus's picture

you're no fun...

Tue, 08/02/2011 - 18:37 | 1518735 andybev01
andybev01's picture

Yeah, it was pretty despicable when they had to trot out the one who is still recovering from getting shot in the brain in order to make their numbers.

Tue, 08/02/2011 - 18:39 | 1518746 caerus
caerus's picture sad was that?

Tue, 08/02/2011 - 18:56 | 1518794 andybev01
andybev01's picture

I'm sure Pelosi had to have glycerin drops applied before she gave the heart warming intro.

I'm also sure Ms. Gifford had no freakin' clue were she was or what she was being directed to do.


Tue, 08/02/2011 - 19:02 | 1518815 Dr. No
Dr. No's picture

Do you think she read the bill before voting? Least she had a reason.

Tue, 08/02/2011 - 19:04 | 1518824 Kali
Kali's picture

Reminds me of the same jokes we used to make about Brezhnev.  And Reagan.  And Khomeini.  Same as it ever was

Tue, 08/02/2011 - 18:59 | 1518802 Hulk
Hulk's picture

The Keating five should have been barred from politics for life. That would have set an example and perhaps avoided much of what we are experiencing today. Instead, they received a hand slap and our true leaders left the system. We are currently rudderless...

Tue, 08/02/2011 - 19:00 | 1518805 Dr. No
Dr. No's picture

Dont forget the war on currency. Not dollar devaluation, rather the war to stop using paper cash for transactions. Cash is not traceable to them. Digital is what they seek.

Tue, 08/02/2011 - 19:04 | 1518821 Juan Wild
Juan Wild's picture



The new American terrorist....the Libertarian. I can see Mitt Romney's new tv add.... RADICAL LIBERTARIANISM is the new face of RADICAL JIHADISM!!  Well excuse me fuckers but if following the Constitution of the United States of America means I am a terrorist than so be it.  Forget the stupid Tea Party. It has been hijacked. PARTY 1 - Ron Paul vs PARTY 2- Reps, Dems. soiled Tea Party "libertarians". Keep your eye on the ball... Okay, now all the trolls can junk me now. DID YOU HEAR ME????????   RON PAUL 2012 !!!!!!!!!! C'mon pussies!!!  Show your TRUE colors!

Tue, 08/02/2011 - 19:09 | 1518839 Kali
Kali's picture

+1660!  But remember, a cornered animal is the most dangerous.

Tue, 08/02/2011 - 19:13 | 1518859 TSA Thug
TSA Thug's picture

That's raciest dude. Let's think before we post, ok?

Wed, 08/03/2011 - 02:45 | 1519681 StychoKiller
StychoKiller's picture

"Let the sargeant mirror spin, if we lose the barbers win!"

Tue, 08/02/2011 - 19:14 | 1518863 Homey Da Clown
Homey Da Clown's picture

John, I thoroughly enjoy reading your comments. 

Tue, 08/02/2011 - 18:33 | 1518716 gunsmoke011
gunsmoke011's picture

One would have thought that the ratings agencies would have taken this opportunity to make a no brainer call in an effort to rehab their abysmal images. Apparently - they are going to re play the subprime mortgage saga and wait until the U.S. officially Defaults and the market is trading with a 2 handle before they "Make The Tough Call"! In fairness however- I would imagine they are busy scheduling emergency surgery to reattach their twisted off arms.

Tue, 08/02/2011 - 18:35 | 1518723 Cult of Criminality
Cult of Criminality's picture


This just in

Peer reviewed Economists say this comes as a surprise,completly unexpected,nobody saw it coming.

Tue, 08/02/2011 - 18:36 | 1518728 Buck Johnson
Buck Johnson's picture

Moody's didn't do their job during debt fiasco, and it won't do it's job now.  We are a kleptocracy anymore.

Tue, 08/02/2011 - 18:38 | 1518739 andybev01
andybev01's picture

'evermore', fixed that for ya.

Tue, 08/02/2011 - 18:38 | 1518737 BurningFuld
BurningFuld's picture

Hummm... I see there is no money to be made on an inside tip on this.  PSSSTT Sept 23rd we are knocking the USA down a notch. 


Tue, 08/02/2011 - 18:39 | 1518747 G. Marx
G. Marx's picture

Will a Downgrade of USA FROM AAA Really Mean Anything? - Martin ARmstrong

"Downgrades come AFTER the market has already shown its course of action. It is not like the rating agencies actually pontificate and then the markets wake up and say: Oh my God! Ratings follow the market activity and have no power otherwise. The credit rating they gave the CDOs did not convince people to buy them. Once the junk was rated AAA, they were good collateral for the REPO market. That was the key. They rated the junk AAA and that made it good collateral and that was the ONLY reason the stuff sold. Without that rating, the NY boys couldn’t sell anything.

When it comes to sovereign debt of the USA, we are talking about the US$ is the RESERVE currency. About two-thirds of central bank reserves globally is in dollars and the way those dollars are held is in government treasuries. Does anyone really think that if S&P downgrades the USA that its debt will not be sold?"

More in the PDF linked above.

Tue, 08/02/2011 - 18:39 | 1518748 Spastica Rex
Spastica Rex's picture

Read Vladimir Propp's Morphology of the Folktale: it explains everything. In the next part of our story, someone will get married and live happily ever after.

Tue, 08/02/2011 - 18:40 | 1518749 Pay Day Today
Pay Day Today's picture

"Not to appear overly corrupt or incompetent"

Indeed. We must only appear mildly corrupt and mildly incompetent.


Tue, 08/02/2011 - 18:41 | 1518751 Alex2245
Alex2245's picture

This country is going STRAIGHT into martial law


Super Congress means end of America as we know it...

Tue, 08/02/2011 - 18:47 | 1518768 buzzsaw99
buzzsaw99's picture

the only entities stupid enough to trust the ratings agencies are pension funds.

Tue, 08/02/2011 - 19:05 | 1518827 NotApplicable
NotApplicable's picture

And those stupid people do it with OPM, so what do they care?

Party on!

Tue, 08/02/2011 - 18:47 | 1518770 Yen Cross
Yen Cross's picture

  We need to break those Fed Pension funds...

Tue, 08/02/2011 - 18:48 | 1518772 Cult of Criminality
Cult of Criminality's picture

They look totally corrupt and incompetent anyway and not just look it, They Are !

 Funny everybody but them know it.Is this some kind of mystery phenomena that is taking over the washington bubble ?

Tue, 08/02/2011 - 18:51 | 1518782 Yen Cross
Yen Cross's picture

Cramer is so spun , he is pushing " Pharmas"  What a clown...

Tue, 08/02/2011 - 19:02 | 1518814 andybev01
andybev01's picture

To look at the man you would think that he is also snorting them.

Tue, 08/02/2011 - 19:05 | 1518819 Rainman
Rainman's picture

....booyah ! Big Pharma is a screaming buy....we be eatin our pills until properly sedated. Then comes the peas. Go long Birds-eye too.

Tue, 08/02/2011 - 18:58 | 1518798 obewon
obewon's picture

For anyone with an IQ over 95, it's relatively easy to understand Moody's decision.


Moody's: "We want immunity from future prosecution... (ya know, subprime crisis and our involvement as a catalyst, the MBS scandal, and all that shit) . . ."

US DOJ: "What are you willing to do for to be assured of that immunity?"

Moody's: "Well, for starters, we'll keep the US government bond ratings at AAA..."

US DOJ: "OK, you guys have immunity; but we didn't have this conversation..."

Moody's: "What conversation . . .?"

Tue, 08/02/2011 - 18:59 | 1518801 Waterfallsparkles
Waterfallsparkles's picture

What as sham.  Moodies does what ever the Banks want it to do.

I believe the Banks used Moodies to get the 2 Trillion Debt deal.  Who keeps Moodies in business?  The Banks.

I watched ceg get crushed from $98. down to $15.  Moodies downgraded it.  Wa La Buffet wanted to buy a major interest in the Company.

I watched Abk go into bankruptcy because every time it started to show a spike in share price they would downgrade it.  I believe JPM was short the stock and wanted to cash in on their CDS's.  Abk also had a law suite against JPM because of all of the bad loans that Washington Mutual had that JPM bought. 

The Bankers are running the Country and they are using the Rating Agencys to complete their agenda.

Tue, 08/02/2011 - 19:08 | 1518835 Waterfallsparkles
Waterfallsparkles's picture

Rating Agency's have become Terrorists.  They do the Bankers bidding.  So, if the Congress and the Senate did not raise the Debt Ceiling by 2 Trillion and allow the FED to transfer the entire amount to the Banks then they would downgrade.

Force all of the Money used for SS and Medicare to be taken away from the Seniors and given to the Banks as well.

The Bail Out of Bankers ran up the Debt Ceiling at the expense of all Americans.  Now they want even more money to siphon even more money from Americans.

Matt Tabbi's explanation of the giant squid wrapped around the face of humanity is mild.  They are more like leaches sucking the life blood of everything they touch.  They leave it for dead and go onto another host.

Tue, 08/02/2011 - 19:12 | 1518852 BurningFuld
BurningFuld's picture

Gold is up $43.50 today. That means I had a very good day. Thank you. I may have a drink now.

Tue, 08/02/2011 - 19:19 | 1518879 MoneyWise
MoneyWise's picture

This is a Market rules: When you feel too good about your investment it's a time to take a profit. Unless you sold your GOLD here, don't, drink too much, cause this POP will be sold soon.. Nothing goes up in the straight line.. small 100+$ correction, at least, around the corner.. Watch and learn.

Wed, 08/03/2011 - 11:00 | 1520622 BurningFuld
BurningFuld's picture

I bought it 3 years ago............... @823USD/oz.  

Tue, 08/02/2011 - 19:21 | 1518895 zorba THE GREEK
zorba THE GREEK's picture

I had steak for dinner. It tasted like.......Victory.

Tue, 08/02/2011 - 19:17 | 1518875 Homey Da Clown
Homey Da Clown's picture

Don't forget these Agencies are regulated by the um..... US Government. Nothing to see here folks.Move along....

Tue, 08/02/2011 - 19:23 | 1518897 MoneyWise
MoneyWise's picture

Ohh, and by the way, if US is not AAA, then who is?

Russia? :))) Get your brains in order, dudes..

Tue, 08/02/2011 - 20:52 | 1519144 Amish Hacker
Amish Hacker's picture

Standard & Poor's have assigned the AAA rating to the following: Australia, Austria, Canada, Denmark, Finland, France, Germany, Liechtenstein, Luxembourg, the Netherlands, Norway, Singapore, Sweden, Switzerland, the United Kingdom and the United States. Territories that are not sovereign are also included: Guernsey, Hong Kong and the Isle of Man.

Tue, 08/02/2011 - 19:29 | 1518912 PulauHantu29
PulauHantu29's picture

Even Krugman is trashing Moodys. From yesterday's Krugman interview here on ZH:

Reporter: "Well, what about Moodys and S&P?"

Krugman: (chuckling) "Who's going to believe a company that rated subprime junk as Triple AAA?"

(I'm paraphrasing a little)

Even Fitch is better and Dagong is one of the Best of the Big Rating Agencies....of course, nothing beats ZH opinions!

Tue, 08/02/2011 - 19:39 | 1518930 MoneyWise
MoneyWise's picture

ZH for years rates everything to junk, except Gold, guns and water..

Perhaps, if they are so sure about some Chinese scams and Market (ponzi) "should go to zero" why not just load up on Shorts and make 3x money vs been long Gold?

Anybody got iron balls to short S&P here without stop loss??? - speak now or forever hold your peace...

We'll check back on results by December.

Tue, 08/02/2011 - 19:53 | 1518998 chump666
chump666's picture

dude, check back over my posts...puts on Dow prior to Europe open.  both the S&P and Dow will be shorted now till QE3, even then they have to do money shot over a trillion plus - to get things moving.  By that stage Asia will be dumping UST's and it's protectionism and chaos. There will be no more mega rallies for a long time.


Tue, 08/02/2011 - 20:14 | 1519039 MoneyWise
MoneyWise's picture

Indeed. All this crap was triggered by Reps in the House, dancing chicken dance for a week, other than that nothing been really changed. Economic numbers was weak for a while now.. Actually it might be orchestrated to get QE3 on the table, cause all of the sudden PPT nowhere to be found to support the Markets at least for now. And me? No I won't short here..
8 straight days down, rebound should hit soon.
I understand everyone is shorting ahead of ATP number,
I wish they surprise upside somehow, to fry some shorts
on the spot.. We'll see tomorrow..

Tue, 08/02/2011 - 19:46 | 1518969 chump666
chump666's picture

Forget Moody's and Zandi is an idiot (no offense to him..but y'know...).  The whole world will will down grade US debt now.  Eventually Moody's will swing back, lock in S&P 100% downgrade coming.


Tue, 08/02/2011 - 20:26 | 1519068 MoneyWise
MoneyWise's picture

"he whole world will will down grade US debt now. "

Ha-ha-ha, Yeah, Baby, the whole world downgrading US debt now by piling up on T-bills, pushing rates to all time low (in some extend even to NEGATIVE % on 2 years).. It's actually looks like an UPGRADE to me,
approved by Markets.

Tue, 08/02/2011 - 19:47 | 1518974 Jovil
Wed, 08/03/2011 - 06:17 | 1519779 DeltaDawn
DeltaDawn's picture

Good link. May have to pass this on as a final warning to friends/family.

Tue, 08/02/2011 - 19:48 | 1518979 israhole
israhole's picture

Getting time to short bonds, perhaps sell the news that all is well in credit land?

Tue, 08/02/2011 - 19:49 | 1518981 dogismyth
dogismyth's picture

All those who thought the "house of cards" would be taken down by an insider...raise your hand?

The jokes on us again, or those who really believed that Moodys or SP would do a downgrade.

You can call it a house of cards, and keep reminding yourself that it will fall soon, but nothing is further from the truth.

It will persist until americans say "enough is enough".  Until then,  you get the blatantly criminal cabal running your world.

This whole shitstorm of fraud, war, genocide, deceit and suffering worldwide could end quite simply if Americans were as angry as Libyans or Greeks.

But that will never happen right? We have no real power...right?  We'll wait for someone like Ron Paul to fix it for

Hang in might be awhile before any substantive changes regardless of the doom and gloom.

Its a well-oiled machine and a few slip-ups isn't going to bring it down.

Now...please return to your incessant "hanging on by the fingernails" for change.

Tue, 08/02/2011 - 19:57 | 1519007 MoneyWise
MoneyWise's picture

"We'll wait for someone like Ron Paul to fix it for"

I like Ron Paul in some extend, but he's more

like a farmer rather than a President. "Delete Fed,

No Gov, Gold standard", dude need good pension and

relaxation.. Sarah Palin has better shot, seriously :)))

Tue, 09/13/2011 - 16:44 | 1519517 AdahPrice
AdahPrice's picture


Wed, 08/03/2011 - 02:45 | 1519683 JPMorgan
JPMorgan's picture

I bet Ron Paul could go some way to fixing some of the problems, that's why he will never get in.

THEY don't want a smart ass president that knows what he is doing and talking about.

He would just end up being assassinated.

Now Sarah Palin... she could well and truely screw things up even more than they already are, so I'd say she has a good chance if she goes for it.

Tue, 08/02/2011 - 20:07 | 1519030 The Heart
The Heart's picture

When they get like this guy, maybe then some change will come about. As it is now, no one even cares as long as they have their cookie.

Check this out, take a note, and pass it on:

Part 1:

Part 2:

Tue, 08/02/2011 - 20:44 | 1519124 vegas
vegas's picture

Nothing but a bunch of shills; they know full well where their bread is buttered.

You want AAA+? Buy physical gold.

Tue, 08/02/2011 - 20:53 | 1519150 Sokhmate
Sokhmate's picture

"Moody's affirms AAA rating, lowers outlook"


My response to this headline is: I lower my gaze, shake head side to side, and affirm that I'm good enough, smart enough, and doggonet, people like me

Tue, 08/02/2011 - 21:38 | 1519264 mayhem_korner
mayhem_korner's picture

Moody's was just a part in the play.


(still channeling Roger Waters)


The lunatic is in the hall
The lunatics are in my hall
The paper holds their folded faces to the floor
And every day the paper boy brings more

Tue, 08/02/2011 - 22:11 | 1519338 Atomizer
Atomizer's picture


Look out for the shock.

IMF on UK: Union Jack: Be Nimble, Be Quick August 1, 2011

The IMF says the U.K. government should be nimble in its policy response if the economy is faced with a period of slow growth and high unemployment. In this interview, the IMF’s Jai Chopra says there’s no evidence of that happening yet.

The comedy has reached a child level. Have you forgotten? LOL

Nursery Rhymes - Jack Be Nimble

My word. Children rhymes are seeding new policy. LOL

Tue, 08/02/2011 - 22:32 | 1519379 Atomizer
Atomizer's picture

Once again, the rating agencies are simply a attention whore. Little do you know or do.. Basel III is a new divine in which rating agencies need to conform too. Hell, I enjoy a drama queen frothing lies to protect their image. LOL


Global systemically important banks: Assessment methodology and the additional loss absorbency requirement - consultative document

This consultative document sets out the proposal from the Basel Committee on the assessment methodology for global systemic importance, the magnitude of additional loss absorbency that global systemically important banks should have, and the arrangements by which they will be phased in. The work of the Basel Committee forms part of a broader effort by the Financial Stability Board to reduce the moral hazard of global systemically important institutions.

The rationale for the policy measures set out in the document is to deal with the cross-border negative externalities created by global systemically important banks which current regulatory policies do not fully address. The measures will enhance the going-concern loss absorbency of global systemically important banks and reduce the probability of their failure.

The assessment methodology for global systemically important banks is based on an indicator-based approach and comprises five broad categories: size, interconnectedness, lack of substitutability, global (cross-jurisdictional) activity and complexity.

The additional loss absorbency requirements are to be met with a progressive Common Equity Tier 1 (CET1) capital requirement ranging from 1% to 2.5%, depending on a bank's systemic importance. To provide a disincentive for banks facing the highest charge to increase materially their global systemic importance in the future, an additional 1% loss absorbency would be applied in such circumstances.

The higher loss absorbency requirements will be introduced in parallel with the Basel III capital conservation and countercyclical buffers, ie between 1 January 2016 and year end 2018 becoming fully effective on 1 January 2019.

The Basel Committee welcomes comments on this consultative document. Comments should be submitted by Friday, 26 August 2011 by email to: Alternatively, comments may be sent by post to the Secretariat of the Basel Committee on Banking Supervision, Bank for International Settlements, CH-4002 Basel, Switzerland. All comments may be published on the Bank for International Settlements' website unless a commenter specifically requests confidential treatment.

August 9, 2011 is the Federal Reserve Meeting. Connect the dots!

Tue, 08/02/2011 - 23:31 | 1519468 davepowers
davepowers's picture

excuse me, did you say

US Govt guaranteed bonds issued by the Govts of Israel and Egypt?

did I read that correctly?

Wed, 08/03/2011 - 00:10 | 1519514 AdahPrice
AdahPrice's picture

Q: How many divisions does the Pope have?

A: How many treasury bonds does Moody's buy?

Wed, 09/14/2011 - 04:36 | 1667305 chinawholesaler
chinawholesaler's picture

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