Moody's: Boehner and Reid bills won't cut it
July 29th, 2011
06:53 PM ET
3 years ago

Moody's: Boehner and Reid bills won't cut it

NEW YORK (CNNMoney) - Neither of the debt ceiling bills before Congress would meaningfully alter the country's debt trajectory and thus won't bolster the United States' chance of preserving its AAA rating, a key rating agency said Friday.

"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," Moody's Investors Service said.

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Filed under: Congress • Debt • Deficit
soundoff (11 Responses)
  1. 2012liberal

    Posture posture posture! DOUBLE A

    July 29, 2011 07:07 pm at 7:07 pm |
  2. GI Joe

    Boehner should have taken the $4 Trillion (with loophole closure).

    He sure fu-ked up!! HE is responsible for any default due to cuts being too small.

    July 29, 2011 07:19 pm at 7:19 pm |
  3. John

    You have to Compromise. Compromise!!!!!!!!!!!!!!!!!!!

    July 29, 2011 07:25 pm at 7:25 pm |
  4. The Greedy Old Pigs have declared class war on US!

    So now the corrupt corporatist cultists at Moody's want a seat at the table? Go to he!! guys, You screwed up America bad enough with your crummy ratings on the real estate market and their related bonds, CDOs, etc. Unless you're willing to back tax increases go crawl back under your rock.

    July 29, 2011 07:28 pm at 7:28 pm |
  5. Michael Gayer

    Of course neither plan will pass Moody's muster. The plan to gain if the ceiling is raised as is.
    Here is the real issue with all of this; Millions of voters Independents, Conservatives, Liberals and Democrats are fed up with the liars the crooks and thieves in Congress. We have been duped con coerced and blatantly lied to.
    Sen Reid thinks he runs the country, the President thinks he is a King and writes executive orders by passing Congress and disregarding the Constitution.
    They want to Raise taxes, but not on themselves or their contributors. Tax individuals with a flat 6% income tax and NO refunds so no huge IRS or cheating Repeal every bit of legislation the Democrats rammed through the Congress before Obama became President and before they Lost Control.
    Put Social Security Excess Fund back in safe hands and repay to it all that they took with interest.
    To the Senate Democrats, Shut up and you can keep your job till November, President Obama Resign today and Sen Reid admit your a liar or no deals. Let it crumble.

    July 29, 2011 07:39 pm at 7:39 pm |
  6. Four and The Door

    I suppose the liberals are going to call Moody's Investor Service a bunch of teabaggers?!?!
    Anyone who feels a nation's debt at 115% of GDP ( and heading North with no turnaround in sight ) is a bad thing must hate grandma and all of the poor people, huh?

    July 29, 2011 07:45 pm at 7:45 pm |
  7. The Day of Financial Reckoning is HERE – The Great Democrat Welfare Society Ends

    The Democrats have so damaged this country with their $1.7 TRILLION deficits as far as the eye can see that we may never recover. And yet the Democrats and Obama can't come up with even the slightest of cuts. Any cuts are characterized as throwing grandma over the cliff. Reality is it is the Democrats throwing the country over the cliff. WAKE UP AMERICA!!

    July 29, 2011 08:15 pm at 8:15 pm |
  8. sara

    there has never been anything positive that come out of anger.....Anger creates irrational thinking and impulsive behaviors....that leads to a castasphere.

    July 29, 2011 08:17 pm at 8:17 pm |
  9. bo-d

    Obama wanted to give you crazy people 4 trillion in cuts you turn that down for 1 so the rich can keep getting richer and the poor stays poor

    July 29, 2011 08:32 pm at 8:32 pm |
  10. LNB

    If a struggling human being cannot get health care ( I hate the term insurance), cannot pay for heat or food, is loosing thier job, their home, their family is crumbling apart, and perhaps they face death from illness, or even an end-of the-rope suicide, what good in the face of this reality is a privileged person's fourth of fifth home? Or a second yacht? The ease of jauntily flying off in a private jet to thier favorite restaurant in another state for a late night supper? The real face of America is becoming more and more haggard, more crumpled: it is angry and desperate, often toothless with gum disease; it may be you and it may be me. Perhaps a brother or uncle. Just to touch upon another subject from my last posting above, the income desparity in this country is killing us as a nation. This kind of chasm is never sustainable ( history shows), is always cruel, and becomes crueler, and people die, for lack of health care and basic needs as things fall apart, or in the final moments, in revolution. Howerver, I would surmise that a civil war here would be more in keeping with the shape and layout of this nation, ralther than revolution.

    July 29, 2011 08:39 pm at 8:39 pm |
  11. The Elephant in The Room

    As a result of the Republican Party kicking up dust over linking the debt ceiling to spending cuts – – and dragging it out 8 months – – these rating agencies feel compelled to demonstrate they are on top of this bad investment – the United States. They were embarassed by their failure on mortgage backed securities in 2007 / 2008 and are trying to manage their image now.

    You`ll notice that Moody`s talks about the DEFICIT, not spending. This means that the Presidents $4T, balanced [tax revenue & spending cuts] plan is far more competent than that from the Republican controlled House.

    The GOP greated this crisis and refused to take yes for an answer after Obama was prepared to give them one hell of a deal.

    July 29, 2011 08:39 pm at 8:39 pm |