This week already brought S&P’s (NYSE:MHP) downgrade to Japan’s (NYSE:EWJ) credit rating. Now, Moody’s (NYSE:MDO) is telling the US (NYSE:SPY) to get their shit together or else a downgrade is coming in 12-18 months.
“[Moody’s] expressed concern about the new configuration of the U.S. Congress, saying it may reduce the chances of an agreement to rein in the deficit … [and] the extension of Bush-era tax cuts would add to the likelihood of a negative outlook on the U.S. rating in the next two years.”
If the US credit rating is downgraded, the cost of servicing future debts will rise. That’s another big waste of money for a budget already full of wasted money.
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