Newsmax: Rating Agencies Warn Further Downgrade Without Deficit Plan

[Patricia M. McBride]

This should come as no big surprise to those who have been paying attention as absolutely nothing has been done to fix/curb the spending and absolutely no budget has been produced in over 3 years...............no budget and no limits placed on the spending and squandering Ovimit has done and all the money he has given away to countless others or wasted investing in his friends companies that have gone bankrupt (wink wink but folks have gotten rich off all those tax dollars).

............................................................................

Saturday, 26 May 2012

Rating agencies say they need to be convinced that lawmakers have a real plan in the works to reduce the growing debt if the nation is to avert future downgrades, according to a report by The Hill.
“If Congress doesn’t put in place a process that assures people that this will be addressed in a real manner . . . then there is no doubt in my mind that our sovereign debt will be downgraded,” said Steve Bell, the senior director of economic policy at the Bipartisan Policy Center. “Markets throughout the world are going to be looking at the action of the United States government.”
“It’s highly uncertain . . . because of the political circumstances,” said Steven Hess, Moody’s lead analyst for U.S. ratings. “Our stance at this point is to wait and see.”
“We’d have to assess the actual content of any temporary agreement,” Hess added. “How likely is it that that will require a credible plan to be implemented within whatever time frame they come up with? It’s the actual deficit and debt trajectories that we expect that will be the most important determinant.”
Fitch and Moody’s have both put the United States on notice that future downgrades are coming without a change in course. Furthermore, Fitch identified 2013 as a crucial year for the United States to take action on its debt. Currently, it sees better-than-even odds that it will downgrade the United States.
Senator Tom Coburn, R-Okla., a member of the Simpson-Bowles debt commission and a long time spending hawk, agrees with the findings.
“We’re going to get another downgrade. I can tell you right now. You can have a great legal case for suing the rating agencies for not downgrading us again because we have not demonstrated the political will to solve the problems,” he said in a recent interview with Bob Schieffer for CBS’s Face to Face.
Read more on Newsmax.com: Rating Agencies Warn Further Downgrade Without Deficit Plan