Moodys Downgrades U.S. Credit Rating

[JimmySpeaks]

9 minutes ago, Caveira said:

He’s a pretty horrible person isn’t he … for the people.  For the working class etc 

Talks out of his wokester winger, anti semitic terrorist supporting, men should be allowed in the same bathroom as little girls while being allowed to play girls sports a$$hole everyday.  He only cares about the working class if they’re minority unlawfuls.   

Edited yesterday at 12:35 AM by JimmySpeaks

[Offthemat]

45 minutes ago, JimmySpeaks said:

 He only cares about the working class if they’re minority unlawfuls.   

Even then it’s only as long as he can get his stuff cheap. 

[Scouts Honor]

THE RICH SHOULD PAY THEIR FAIR SHARE!!!!

 

[Wrestleknownothing]

I will ask the question I have not seen asked.

Does it matter that Moody's downgraded the US to Aa1?

After all they are the third of three major rating agencies to do this, and the first one did it 14 years ago. And it is not like it affects anyone's ability to hold US government debt. And with the ability to print money it is not like a default is likely either (though for brinksmanship reasons it is sometimes threatened).

So what does it really matter? If your answer is that it will make the cost of borrowing higher, that isn't true either. In 2011 interest rates on treasuries went down after S&P downgraded. If you are a corporate issuer it would be true, but the official rating of US government debt does not have any meaningful impact on demand for the securities, so rates are not affected by the rating. 

For sovereign credits ratings are mostly a trailing indicator. Moody's is just confirming what we all already know. Debt is too high, and the latest budget proposal only adds to the problem.

[red viking]

24 minutes ago, Wrestleknownothing said:

I will ask the question I have not seen asked.

Does it matter that Moody's downgraded the US to Aa1?

After all they are the third of three major rating agencies to do this, and the first one did it 14 years ago. And it is not like it affects anyone's ability to hold US government debt. And with the ability to print money it is not like a default is likely either (though for brinksmanship reasons it is sometimes threatened).

So what does it really matter? If your answer is that it will make the cost of borrowing higher, that isn't true either. In 2011 interest rates on treasuries went down after S&P downgraded. If you are a corporate issuer it would be true, but the official rating of US government debt does not have any meaningful impact on demand for the securities, so rates are not affected by the rating. 

For sovereign credits ratings are mostly a trailing indicator. Moody's is just confirming what we all already know. Debt is too high, and the latest budget proposal only adds to the problem.

It's more than a lagging indicator. The latest GOP budgets greatly increase both the deficit and debt. I doubt the timing was pure coincidence. Soaring bond yields are one of the consequences, which equates to more interest on the debt. Yes, bond yields have been shooting up as of late. 

[Wrestleknownothing]

37 minutes ago, red viking said:

It's more than a lagging indicator. The latest GOP budgets greatly increase both the deficit and debt. I doubt the timing was pure coincidence. Soaring bond yields are one of the consequences, which equates to more interest on the debt. Yes, bond yields have been shooting up as of late. 

Those are two different time frames. Yields are basically unchanged since the Moody's downgrade.

[red viking]

1 hour ago, Wrestleknownothing said:

Those are two different time frames. Yields are basically unchanged since the Moody's downgrade.

They're up about 0.05 since then, overall.  Were even higher yesterday. Trend is upward the past 3 months. That's a VERY bad sign when they are supposed to be going down. People and countries are ditching the dollar. GOP budget is part of the picture, zero doubt. 

[Scouts Honor]

so why won't rich liberal New yorkers pay their fair share? 

[red viking]

Just now, Scouts Honor said:

so why won't rich liberal New yorkers pay their fair share? 

They will but you gotta change the tax brackets first

[scourge165]

On 5/16/2025 at 6:34 PM, VakAttack said:

Let's ask a business genius his thoughts: 

 

You know...through all the stupid things he's done, I could make a bit of a defense for him IF he was going to take the money he got from the tariffs and then...of course, stop lying about the deals he's getting done(about half the things he got done in the Middle East are...years in the works, had nothing to do with him and were negotiated under Biden and given he actually did some things, there was really had ZERO need to lie about them)...but, if he was going to take the tariffs and use that to DIRECTLY attack the deficit, they'd still be a net negative and a bad idea, but I could understand the agenda.

Instead, they're going add trillions to the debt.

 

You are getting what you voted for.

[scourge165]

2 hours ago, Scouts Honor said:

so why won't rich liberal New yorkers pay their fair share? 

Why don' Republicans have the balls to save our Country like they did under the likes of Eisenhower? 

Back when we were trying to repay the debt we'd built up after WWII and the Great Depression?

 

Of course you can go back and look at who is responsible for adding to the debt and you find out VERY quickly the Republicans don't actually care. 

[scourge165]

2 hours ago, red viking said:

They will but you gotta change the tax brackets first

Yeah, the 'why doesn't Warren Buffett just pay more if he wants to,' is...yet another intellectually dishonest argument.

 

The people talking about how much they care about the future of this Country are just...so clearly frauds. 

At what point do we care about the debt? When it's 2X the GDP(which contracted last quarter, Trump's first)? 

3X? It used to be the debt shouldn't exceed 25%, then 50%, then 75%...now the total debt of the United States and it's people is 700% of the GDP. That's all debt held by the United States. 

I think our debt to GDP ratio...well, before the last GDP reading was in the 140% range while China was in the 80s. 

Big difference;

Quote

China's debt supports infrastructure and industrial projects, but raises concerns about financial stability. The U.S. debt reflects federal spending and tax policies, with debates on sustainability and economic impact.

China is at least building...MASSIVE infrastructure projects. We're just...giving it back to the uber wealthy. 

And I'm at the point where...I'm starting to not care. 

Cutting the corporate tax rate is going to really help the market and I've got enough in the market that I'll be fine, my kids will be fine and...I guess I'll stop worring about the rest.

 

I will note, I did give a couple stock tips. QBTS, AVGO and...the obvious, NVDA. That was following Trump's moronic tax. 
QBTS is up to ~17 a share from 6 a share(and .76 cents a share just a year ago). AVGO up from ~145 to ~230 and NVDA from 87 back to 135...though most people FOMO'd into that one already.